EQ2

Question 1

San Francisco - Successful

Answer 1

History:
gold discovery attracted settlers in 1800s -> now a hub for businesses + hi-tech industries
- banks set up which attracted investors service industries developed
- 1900s urban sprawl - residential growth
- positive multiplier effect has attracted companies: twitters, dropbox, bioscience

Indicators of success:
- 66% 18-64
- Average household income $126k
- Average house price $1.2mn
- outsider perception positive

Problems:
- 10% poverty - extreme cost of living
- homelessness crisis
- top 1% earn 44x more than average of bottom 99%
- 2015: 5000 homes built, 64k jobs created
- Insider perceptions vary drastically

Question 2

Rust Belt - Unsuccessful

Answer 2

History:
- Detroit centre of US car industry 1920-60
- migration - positive multiplier effect - QOL
- service industries boomed due to population growth
- Global shift - mechanisation - job loss, reduced pay, deindustrialisation (technological advancements replaced workers)
- Depopulation - business closure and spiral of decline
- city declared itself bankrupt in 2013

Indicators of failure:
- 61% 18-64
- Average household income $34k
- Average house price $58k
- 32% poverty - poor QOL

BEATTYVILLE (Kentucky):
- 4% have bachelors degrees (na 29%)
- 219 households earn less than $10k/yr