economic and social inequalities change perceptions

• inequality is the uneven distribution of economic and social opportunities
• 4 factors of spiral of growth a successful place will experience?

  • population grows as more people migrate
  • cumulative causation (increased economic activity) occurs as more people come to a successful area to provide services = more attractive area to people and investors
  • as more people migrate, there is greater demand for housing = greater house prices, in order to keep workforce and businesses they have to ensure wages they pay match the higher living costs in the area = higher incomes for everyone
  • therefore successful places experience low levels of deprivation
• a case study for a successful place is San Francisco bay area

  • city of 800,000 people in California, began as mining territory but rapidly grew during gold rush in mid 1800s - people quickly migrated to the city and population went from 1000 in 1848 to 30,000 2 years later
  • to service the gold industry large banks and financial offices were set up - attracting more investors
  • pacific railroad into the city in 1869 allowed goods to be imported and exported out of the city causing port area to develop rapidly
  • area has become competitive in high tech industries and e.g Apple are in Silicon Valley
• negatives of a successful places like San Francisco is?

  • areas that usually house low income earners like Bayview is becoming too expensive
  • mission district (immigrant group) bring a lot of crime and gang violence
• unsuccessful places face spiral of decline which leads to a lack of spending = industries closing = unemployment = lower tax revenue = lower spending on public services = unattractive to investors etc
• the case study for unsuccessful places is the Rust Belt USA:

  • informal name for the North east of USA and has faced decline since 1950s
  • Detroit was booming from 1920 to 1960s as people migrated there from all over the country as there was high wages and good quality of life
  • overseas competition from the east via global shift led to mechanisation in Detroit = reduced work force and wages
  • many white workers who were better left = spiral of decline and multiple abandoned buildings
  • city declared bankrupt in 2013.
• rural spiral of decline has occurred in Cornwall

  • famous for its tourist destinations, like Newquay and Padstow, Cornwall has some of the most deprived areas
  • Redruth has a high level of deprivation that it receives funding from ERDF
  • 2014, average wages were £14,300 compared to £23,300 in UK putting it in the top 10 most deprived areas in Western Europe
  • up to 40% of households are on less than £10,000 a year
  • the loss of mining industry and contraction in agriculture and fishing contributed to spiral of decline
• poorer places are priorities for regeneration as the role of regeneration is to reverse spiral of decline and spread wealth to level society

  normally limited funds available for regeneration so authorities give priority to areas in decline

  sink estates (housing estates that are perceived as the least desirable places to live by a population) are also targets

  gated communities and commuter villages are low priority for regeneration