Many ACs have undergone deindustrialisation when they lost a competitive advantage in
many manufacturing sectors. In the 1970s UK cities, economies and societies were affected,
leading to multiple deprivation in many urban areas.
Multiplier effect = the process by which a new or expanding economic activity in an area
creates additional employment. Employees have more disposable income, encouraging
growth in other sectors, economic activity and investment. It can be positive (an upward
multiplier) or negative due to job losses (downward multiplier).
Impacts of economic change in ACs:
Impacts of economic change in EDCs and LIDCs:
How cyclical economic change impacts on social opportunities as well as inequality:
Economies are dynamic, not static. During recessions spending power is reduced, cutbacks
on service and retail activities. Job losses activate downward multiplier. In an economic
boom this reverses and core regions develop a positive multiplier effect.
The role of government in reducing, reinforcing and creating patterns of social
inequality in places:
Operate at trans-national (EU), national, regional and local scales (such as parish councils).
Social inequality can be governed by:
• Taxation – higher tax for higher earners.
• Subsidies – free school meals.
• Planning – upgrading council housing.
• Education – training programmes and health initiatives.