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ChristianKl comments on Open Thread Feb 16 - Feb 23, 2016 - Less Wrong
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People basically want to live where they can find a well-paying job.
In the great leap forward Mao thought that the factories being in cities was simple a coordination problem. He then declared to move them outside of the cities where they were grown organically. It was a disaster.
A big company like Google could theoretically move it's business headquarters to the middle of nowhere. On the other hand that would likely be a very bad business decision. It's employees wouldn't simply want to move to the middle of nowhere.
There are also good reasons why "where they can find a well-paying job" usually coincides with "where there are a lot of people."
Generally speaking, a person's salary corresponds to a pretty reasonable estimate of how much good they are doing for society. It's easier to do more good for more people when more people are around, e.g. a restaurant does more benefit to more people by being close to a lot of people, instead of being in the middle of nowhere. So generally people will get paid more if they have jobs closer to a lot of people.