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How can technology shrink vehicles or people, they still take up the same amount of space?.
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Two things technology will do to help pack more in to less space, but keep things flowing.
1) Computers driving the cars around, helping avoid congestions and use the routes more a inteligent way.
2) Roads won't be required sooner or later, as cars will in effect become flying mobiles. It'll happen sooner or later and then congestion is a thing of the past.