Los Angeles
It’s a city that has rapidly grown with a lot of industries dealing with advanced technology. With advanced transportation methods, makes LA the world’s best high-tech city. It holds several higher learning institutions in the world and has awarded over 72,000 degrees.
Economic data of LA
| Percentage%Health care 12 Finance and insurance 4 Accommodation and food 8 Education 7 Manufacturing 7 Retail trading 9 Information 5 Total $2.06m( assets ) | employees 240,000 50,000 180,000 150,000 150,000 200,000 120,000
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Industries that are growing in Los Angeles
Manufacturing
Manufacturing has gradually been growing in LA due to the availability of ready to use raw materials. Oil was discovered back in 1892 by Edward L. Doheny in residence and hence led to drilling in Los Angeles, which made this megacity a beehive of activities in regards to petroleum production. Oil played a significant role in the industrialization of the city by creating jobs, increasing of market. However, the San Francisco earthquake caused manufacturers to down their tools and move south for lower pay. The government was involved in expanding the size of the oil plant because LA had quite a good number of planes and other war vessels that used petroleum products manufactured. Today’s industries have become diversified, with new technologies coming into place. Production has increased by a double of what was manufactured in a given time. Employment opportunities have diminished due to the reliability of machines. ( Sabin, 1959)
Finance
Finance plays a significant role in the economy of Los Angeles. It runs businesses, the health sector, transportation, manufacturing industries. Oil production led to Los Angeles becoming the first financial center in the 20th century. The banks were full of finances, a clear way to show how the finance sector was at its peak as shares were trading every year in the PSE (Pacific Stock Exchange ). In 2001, the bank commenced an electronic way of business with the NYSE (New York Stock Exchange). ( Yan et al., 2013)
In Los Angeles, there are innovative industries that are growing at a vast rate. The entertainment industry is one of many. Billions are invested in film making yearly and has created employment to a lot of people. Several of these films are shot in the United States, influencing overseas markets. The audience of one film is more than a billion fans.
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| Percentage % |
| Residence of LA living below the poverty level | 16 |
| A resident of LA living in areas that qualify to be slums | 43 |
| Size of informal economy and people estimated to work there | 60 – 85.8 |
| How (un)equal is LA-based on inequality. | 50 |
Issues faced by residents from informal neighborhoods.
Homeownership has been a significant issue for residents in vulnerable informal sectors in LA. It comes with connections and benefits that play a vital role in the economy of the city. Over the years, homeownership has substantially stabilized the financial status of the city’s economy. However, homeownership is not an easy way for many of the residents living in the informal sectors. There are barriers to owning a home. 23% of homeowners were recorded in 2010, which marks a low rate in Boyle Heights. Most residents do not access finances due to unemployment. In Boyle Heights, a person can earn as much as $32,000 compared to monthly expenses of over $60,000. These expenses include rent, food, transport, medical care. Therefore points out to income being the main barrier to homeownership. Most residents cannot access financial institutions like their savings accounts, which may help in obtaining credits. Boyle Heights has a total of seven banks that can provide financial services to more than 80,000 residents. Accessing these institutions has been a challenge to residents in informal sectors due to a lack of personal financial information leading to mistrust from financial institutions. ( Marcelli et al., 1999)
Policies that LA promotes poverty settlement.
Taxation and income inequality.
Los Angeles is seeking to review unemployment in informal residential areas. Increasing household income with lower tax rates. The CBO puts in place measures of tax-free income to residents in informal sectors as the government takes the responsibility of income transfers and taxes since most government revenues drain from individual taxing. The personal taxes can rate up to 1.6 trillion. (Hamin, 2001)
Housing and urban planning.
It is an essential policy since most residents endure the burden of rent payment. However, for people with informal jobs have had a more substantial difficulty in regards to rent amount. They spent more than 60% of their total income on rent alone in 2012, unlike the lower percentage in 2000. The government has supported residents to be able to afford to house. It has lowered mortgages and built more decent residential homes for its people. (Karoly, 1994)
References
Yan, Ming, et al. “General Convergent Expectation-Maximization (EM)-type Algorithms for Image Reconstruction.” Inverse Problems & Imaging, vol. 7, no. 3, 2013, pp. 1007–1029., doi:10.3934/ipi.2013.7.1007.
Sabin, Paul. “Beaches versus Oil in Greater Los Angeles.” Land of Sunshine, pp. 95–114., doi:10.2307/j.ctt5hjnm5.13. 1959
Hamin, E.m. “William Mulholland and the Rise of Los Angeles.” Landscape and Urban Planning, vol. 53, no. 1-4, 2001, pp. 185–186., doi:10.1016/s0169-2046(00)00140-7.
Karoly, Lynn A. “Trends in Income Inequality: the Impact of, and Implications for, Tax Policy.” Tax Progressivity and Income Inequality, 1994, pp. 95–129., doi:10.1017/cbo9780511571824.007.
Marcelli, Enrico A., et al. “Estimating the Effects of Informal Economic Activity: Evidence from Los Angeles County.” Journal of Economic Issues, vol. 33, no. 3, 1999, pp. 579–607., doi:10.1080/00213624.1999.11506187.