THE BAY AREA, ITS PROSPECTS AND ITS PROBLEMS - 2 - Third, the necessary increase in employment requires a growth in business that will provide the employment. Fourth, the opportunities to achieve such a growth in business in the Bay Area are excellent because of certain inherent advantages that exist in the region. Fifth, the business growth and perhaps even the population growth can be stifled and finally arrested unless the communities within the Bay Area take the necessary actions to allow growth to continue. Sixth, many of the problems faced by our political subdivision are the functions of rapid growth and the solutions necessary will put to the test the adequacy of our existing political structure. Seventh, the impacts of expansion in population and in industry will alter the historical relationships in this area between industry and agriculture and among various industries themselves. Finally, I shall try to point out an avenue of approach that will help solve the problems as they arise and to draw for you my conclusions as to the future of this area. The Bay Area consists of the 9 counties most immediately adjacent to San Francisco. It has achieved a population of 3.2 million at the beginning of this year, an increase of 21.2% in the last 6 years and approximately 80% in the last 16 years. From 1940 to 1950 the area grew at the rate of 7,900 people every month. Since 1950 the rate of growth has accelerated to 8,200 people monthly. This is the equivalent of a city the size of Livermore coming into being every month in the area. Over half of the residents live in the 12 contiguous central cities, and the metropolitan development ranks 7th in the nation in total population and retail sales, sixth in total income, fourth in per capita retail sales, and third in per capita income.