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The Power of Moving Capitals and Creating New Cities
Creating a new city as a new elite center can effectively prolong the existence of a society by transferring power and changing where coordination happens. The physical layout of cities impacts decision-making as seen in historical events like the establishment of Constantinople, leading to a shift in power from the Roman nobility to the new Senate. The proximity of governmental offices can impact outcomes, as demonstrated by the connection between the Department of War and the State Department in the US. Moving capitals can exile individuals to irrelevance, as observed in Russian history when the Tsars relocated from Moscow to St. Petersburg, marginalizing the Moscow nobility. Establishing a new capital with new institutions could create a positive-sum game, leaving negative-sum institutions behind to play their self-marginalizing game, thus fostering optimism and new opportunities.