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If you want to frame it as a "versus" thing, than urban is winning because the rural pop is declining while the urban pop is growing. It's been that way for the last 20 yrs in total rural pop and the last 60 yrs in rural % of total pop. States with the highest % rural pop also tend to have the high % poverty.
I don't necessarily see it all from a competitive perspective, but it does play a part since the representation is going to favor larger populations since those locations are also where the private sector consolidates as well.