So how does that stop economic growth of areas outside of the city? Sounds like it would ignite economic growth as smaller cities have to create their own services.
If it was better to have these services in the area outside the city, they'd already exist. These areas are too sparsely populated for these services to practically exist, and the ones that already exist depend on car traffic from the cities that would cease to exist if it was impractical to own a car in the city.