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Effects of mass Industrialization on on the rise of cities(Birmingham and Beijing)

Effects of Mass Industrialization on the Rise of Cities (Birmingham and Beijing)

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Introduction

Industrialization is one of the major factors that influence the rise and growth of cities around the world. It is driven by economic, social and technological changes that lead to the transformation of a society from agrarian to industrial one. As industrialization takes place, people move from rural to urban areas. This results in the development of new cities as well as increase in their extent. Industrial revolution that occurred in the late 18th century and early 19th century laid ground for the growth of most existing cities in Europe and North America (Cave, 2005, p. 250). Over the last century, mass industrialization in developing countries such as China and Libya has also led to the growth of major cities, such as Beijing, the capital city of China. As Yeo (2007, p. 116) explains, mass industrialization may have favorable and/or unfavorable effects on the growth of cities. In the case of Beijing, for instance, mass industrialization has been one of the major factors that have let to its rapid growth in the recent years (Wang, 2011, p. 90). On the other hand, mass industrialization has led to the decline in urban development in Birmingham, one of the metropolitan cities in the United Kingdom. This paper presents a comparative analysis of the impacts of mass industrialization on the rise and growth of the two cities; Beijing and Birmingham.

Impact of Industrialization on the Rise of Beijing

During the end of the first half of the 20th century, no major industrial activities were taking place in Beijing. As Hui (2013, p. 124) explains, Chinese economy was largely driven by agricultural activities that highly relied on man-power. In 1953, the government of China laid down a Five-Year Plan that opened the way for industrialization in Beijing. The plan, which mainly relied on principles borrowed from the Russian government, mainly focused on the establishment of industrial activities around China. The implementation of the plan started in 1956 with the mining of Coal in Beijing. The small steel and iron factories that existed in the city were improved. As well, the central government invested more in machine and electrical industries. Infrastructure was also developed; new railway lines that linked Beijing to other parts of China were developed. Capital Airport was constructed in 1957. As a result of the improvements, many people started moving from rural areas to Beijing to seek for jobs. This led to a rapid increase in population in the city (Hui, 2013, p. 124).

The rapid growth of population and industrialization in Beijing in the 1950s and early 1960s led to over-population and surplus production. In response, the central, communist government of China forced modernization of agriculture in order to increase market for industrial products. At the same time, labor input was intensified to support industrial production. To regulate population increase in the city, excess labor force was transferred to rural areas through ideological mobilization (Wang, 2011, p. 90). By 1978, Beijing had become a major industrial city, comprising of primary, secondary and tertiary industries. As industrial growth continued during the succeeding years, Chinese government regulated population growth in Beijing and other cities through supporting various investments in the rural areas. Although Chinese economy encountered several phases of economic crises, this did not have major adverse impact on industrialization in Beijing (Wang, 2011, p. 90).

Since the early phases of industrialization, Beijing has registered a positive growth and development. In fact, it has risen from insignificance to a point where is now ranked as one of the top international metropolitan cities in the world (Qi, Shen & Dou, 2013, p. 205). Beijing’s industrial sector is currently experiencing rapid and sustainable growth characterized by developed metropolitan economy, good traditional industrial sector and hi-tech businesses. To support industrialization in the city, the government of china has invested heavily in rich intellectual and intensive technological resources. Today, the city has more than sixty universities and more than 400 vocational and polytechnic schools (Qi, Shen & Dou, 2013, p. 205). The continuous rise in population in the city has translated into high rate of commodity demand. Most large commercial institutions in China are based in Beijing. Health and medical services are in plenty in the city. The city is also well known as a perfect display for Chinese culture. It is ranked among the superior international metropolitan cities in terms of infrastructure development. It has easy access to radiating airways, highway and railway networks. It is the leading city in terms of information technology development in China (Qi, Shen & Dou, 2013, p. 206). Overall, Beijing is one of the leading metropolitan cities in the World in terms of socio-economic development. The current status of Beijing has mainly been brought about by the rapid increase in industrialization in China over the last several decades.

Impact of Industrialization on the Rise of Birmingham

Unlike Beijing, mass industrialization has had an unfavorable impact on the growth of Birmingham. Industrial growth in Birmingham started in the late 18th century, during industrial revolution that mainly occurred in Europe and North America (Zettersten, 2011, p. 60). The emergence of the city during the period may be attributed to the fact that Britain was the most industrialized country by then. As in many other cities in Britain, industrialization in Birmingham started with the development of textile industries. In the late 18th century and early 19th century, Briton textile industry did not face significant competition in the international market. This led to the rapid growth of Birmingham city, among other cities in the country. The reason why the textile industry supported industrialization is that there were low start-up costs, use of unskilled labor and easy entry and exit into the industry (Gilmore & Williams, 2012, p. 195). During the 19th century, iron and railway industries were established in the city. Glass, rubber and steel industries were established between 1870s and 1920s. By mid 20th century, pro-chemicals, plastics and automobile industries were growing rapidly.

Generally, the period between mid 18th century and 1980s saw the rise of Birmingham from just a market town to a major industrialized metropolitan city. It was well known due to a combination of factors, such as influx of workers, commercial innovation, scientific achievement and civic investment. By 1980, Birmingham had become one of the cities in the UK with major automobile producers. Areas in the city that were bombed during World War II were re-built. Infrastructure was developed; both roads for vehicles and paths for pedestrians were constructed.

As the city grew, there was constant increase in population, resulting from immigration from rural areas. Between 1950s and 1980s, the number of emigrants into Birmingham increased rapidly. Most of the immigrants came from Ireland as they sought to escape from unemployment and economic deprivation in their homeland. There was also major influx of immigrants from other countries, especially the commonwealth nations (Therbon, 2010, p. 47).

By 1970s, Birmingham’s economy was largely supported by automobile industry and most of the immigrants were employed in that industry. By early 1980’s the British automobile industry collapsed, an occurrence that highly affected the economy of Birmingham. Birmingham could no longer rely on the industry. As a result, Birmingham dropped from being the city with the highest to the lowest GDP in Britain. More than 200,000 people lost jobs. By 1982, unemployment rate in the city had risen to 20%. Although new measures to support the economy of Birmingham were laid out, the failure of the automobile industry led to the collapse of its overall industrial economy (Therbon, 2010, p. 47). The high rate of unemployed immigrants led to emergence of slums, overcrowding, illnesses, riot and wrangles between people from different backgrounds. There have been measures to regenerate the city, which have been successful so far.

Conclusion

In conclusion, industrialization has been a major driver for the growth of cities for a long time. However, the factors at play during the process of industrialization keep on changing and they may have favorable or unfavorable impact on the growth of cities. In the case of Beijing, industrial development in China has supported its constant growth since 1950s. Despite the fact that there have been instances of economic crises in China, they have not affected industrial development and the growth of Beijing. As a result, Beijing has grown to become one of the major metropolitan cities in the world. In the case of Birmingham, industrial development supported its growth to a point where it became one of the largest metropolitan cities in Britain. However, its overreliance on industrial development (automobile industry) led its economy to collapse in early 1980s. Although new strategies to regenerate Birmingham were established, it has not been able to catch up with many other major cities which they were on the same level before the occurrence.

References

Cave, R. W. (2005). Encyclopedia of the City. Taylor & Francis, London

Gilmore, S. & Williams, S. (2012). Human Resource Management. Oxford University Press

Hui, X. (2013). Housing, Urban Renewal and Socio-Spatial Integration: A Study on

Rehabilitating the Former Socialistic Public Housing Areas in Beijing. TU Delft, Beijing

Therbon, G. (2010). Handbook of European Societies. Springer, Liverpool

Qi, E., Shen, J. & Dou, R. (2013). The 19th International Conference on Industrial Engineering

and Engineering Management: Management System Innovation. Springer Science & Business, Beijing

Wang, J. (2011). Beijing Record: A Physical and Political History of Planning Modern Beijing.

World Scientific, Shanghai

Yeo, Y. (2007). Regulating China’s Industrial Economy: A Comparative Case Study of Auto and

Telecom Service Sectors. ProQuest, London

Zettersten, A. (2011). J.R.R. Tolkien’s Double Worlds and Creative Process: Language and Life.

Palgrave Macmillan, London

Effects Of Insomnia

Effects Of Insomnia

Abstract

Poor sleeps, as well as sleep dissatisfaction, are the frequent problems resulting from insomnia. The condition results in lack of concentration and fatigue. Insomnia is caused by factors within the body or outside the body. It is more prone among the old, night shift workers and women. The condition is also common among smokers and coffee lovers. There is a company that has managed to come up with a drug that can cure the disorder. However, the company is faced with a challenge of introducing this new product in the market. The best way recommended to making this new drug sell is by giving it for free to customers as a trial version. The company can also sell it with other drugs, and employ hardworking marketing team.

Introduction

According to Byrnes (2013) “Insomnia is well-defined as trouble falling asleep, difficulty staying asleep or short sleep period, despite taking an adequate occasion for sleep. It is the utmost common sleep complaint, touching approximately 20-40% of the mature population. Even when additional stringent conditions are necessary, such as daytime impairment or noticeable distress, insomnia conditions have an occurrence of approximately 10%. Evidence proposes that insomnia has major consequences on worth of life, healthcare use, and later psychiatric disorders. Effective short-term behavioral and pharmacologic prescriptions for insomnia are offered, and improvement has been prepared in epidemiology and risk factors identification.” There are two types of insomnia. Acute insomnia is the situation where one fails to sleep for a period of not more than one month. It is caused by failure to initiate sleep or poor quality sleep. It is at times known as short or stress related insomnia. The second type of insomnia is chronic. It is given the name chronic because it lasts for more than a month. It is caused by changes in level of stress hormones.

The main symptoms of insomnia include not feeling refreshed even after sleeping or taking a rest, fatigue even when the body has not worked, difficulty concentrating even in conducive environments and impaired capability to perform normal activities (University of Maryland Medical Centre 2011). Insomnia can be managed from crucial knowledge that this report contains.

2.0 Findings

2.1 Reason for Insomnia

Substance abuse

Use of substances that are stimulants can lead to insomnia. These substances stimulate the body to stay alert hence one cannot sleep. The stimulants charge the body neurological system, and for them to diminish their effect on the body a lot of time must pass. In this case, therefore, all stimulants and substance abuse are most likely cause insomnia (National sleep foundation, 2013).

Stress

Insomnia can also stems from stress and worry, for example, loss of a job, death of loved one; aspiring for the future such as wedding, earn money to buy a house, (The Daily Telegraph, 2013).

Chart showing major causes of insomnia

(Adopted from: Attarian, 2010.)

Analysis of the chart

Insomnia is largely caused by an external body factors. The two major stressors are caffeine and medication. Other causes are occurs naturally and thus cannot be avoided.

2.2 Consequences of Insomnia

Insomnia can cause medical and psychological problems on individuals and society. Problems arise because the body is not able to rest and; therefore, a person is easily distracted. This leads to errors when performing various duties. According to University of Maryland Medical Centre, insomnia causes headaches, depression and vehicle accidents. (University of Mary Medical Centre, 2011)

2.3 People Who Suffer From Insomnia

2.3.1 Elderly People

According to Farhan Siddiqui &Carolyn D’Ambrosio, A. (2013) the old are more prone to insomnia than any other age group. This is because their body systems are weak and, therefore, the strain to work. This leads to a lot of fatigue which is responsible for sleepless nights. In addition, the old people are commonly under medication because their body defense mechanism is weak. The medication they regularly take causes them sleepless nights.

2.3.2 Women

Women and men can both develop insomnia; however, the prevalence of insomnia is more common in females. This is because menstrual cycle, estrogen and pregnancy are body stressors. These conditions interfere with the normal cycle of hormones and the body, (University of Maryland Medical Centre, 2011)

2.3.3 People who work shifts

People who have night rotating work or different schedules work time are more likely to become victims of insomnia. Night shift workers disturb the body biological clock because they work at night and sleep during the day, (National Sleep Foundation, 2013). The bright light and noise at the workplace also distracts the body working mechanism.

Conclusion

The present knowledge substantiates the most prevalence of insomnia disorder in the general populace as well as their correlation with older age, female sex, and physical activities amongst others. These findings in the paper further indicate the factors that contribute to insomnia. There are those that can be avoided, for example, working in shifts, taking coffee and smoking. Others are natural and cannot be avoided, for example, pregnancy and hormonal cycle change in women. Therefore, insomnia is caused by processes that take place in the body, for example, hormones, which cannot be regulated and voluntary activities such as smoking.

Recommendations

The company should give a few packets of the drug to patients for trial and ask them to give feedback about whether they functioned accordingly.

The company should contract or make a deal with other companies are involved in supplying medical stuff for high blood pressure or heart disease patients. The new drug can be packed alongside this new drug as a gift. The company should provide instructions that the drug does not contain additives, safe for pregnant and elderly people. They should also assure patients that it is safe when taken with other prescriptions.

Establish booths in public places to be visited by people who frequently suffer from insomnia. The company can also employ sales person who have persuasive skills to convince people to buy this drug as well as offer promotion, for example, buy one get one free.

Launch a campaign to make people aware of the new drug. The company can also use posters on the trains and buses with pictures of each group of people that suffer have ever suffered from insomnia looking healthy and relaxed and indicating that they have used this new drug.

Make advertisement on both print and electronic media. The company should use people from all the groups who suffered from insomnia in their commercial advertisement. This would influence others people who suffer from the condition to purchase the drug.

References

Attarian, Hrayr P. (2010). Sleep Disorders in Women, from Menarche via Pregnancy to Menopause: Guide for Practice Management. Humana Pr Inc.

Farhan Siddiqui &Carolyn D’Ambrosio (2013) Sleep Disorders in Older Patients Retrieved

from HYPERLINK “http://link.springer.com.ezproxy.lib.rmit.edu.au/chapter/10.1007/978-1-60761-727-3_9#page-1” http://link.springer.com.ezproxy.lib.rmit.edu.au/chapter/10.1007/978-1-60761-727-3_9#page-1

Guo, Y., et. al.(2013).The Effects of Shift Work on Sleeping Quality, Hypertension and Diabetes

in Retired Workers Retrieved from http://search.proquest.com.ezproxy.lib.rmit.edu.au/docview//141D520EE746F12895A1430785730/75?accountid=13552

National Sleep Foundation, (2013). Cannot Sleep? What Know About Insomnia Retrieved from

http://www.sleep-foundation.article/sleeprelatedproblems/insomnia-and-sleep

The Daily Telegraph (2013). For a restful night, stay off the coffee after 5pm Retrieved from

HYPERLINK “http://search.proquest.com.ezproxy.lib.rmit.edu.au/docview/1458684852/141D9C99D011FCCA” http://search.proquest.com.ezproxy.lib.rmit.edu.au/docview/1458684852/141D9C99D011FCCA

BEB/178?accountid=13552

Nina, B. (2013). How can I remedy my chronic insomnia without resorting to sleeping tablets?

Retrieved

fromhttp://search.proquest.com.ezproxy.lib.rmit.edu.au/docview/1459120891/141D9C99D011FCCABEB/148?accountid=13552

Zailinawati, A., Mazza, D. & Teng, C.L. 2012, “Prevalence of insomnia and impacts on daily functions amongst Malaysians primary care patient”, Asia Pacific Family Medicine, vol. 11 Retrieved from

HYPERLINK “http://search.proquest.com.ezproxy.lib.rmit.edu.au/docview/1267617638/141D520EE746F12895” http://search.proquest.com.ezproxy.lib.rmit.edu.au/docview/1267617638/141D520EE746F12895A/8?accountid=13552#

Effects of Inflation on GDP

Effects of Inflation on GDP

Author

Institution

Introduction

Inflation has been one of the most commonly used terms both among scholars and the general public. The general public expresses panic in instances where it inflation goes beyond a certain level. Economists are usually concerned about inflation thanks to its effects on the Growth Domestic Product (GDP) or the economy of a country at large. The resultant effects of inflation are a product of its effects on other variables in the economy including consumption and investment. Macroeconomic policy makers have had their central objective as the sustenance of low levels of inflation coupled with high and sustained economic growth. The increased research on inflation usually emanates from the serious implications that it has for income distribution and growth in the economy. Debates, however, have also concentrated on factors that determine the rate of inflation as they have a bearing on its consequent effects. There is demand-pull inflation, which results from an increase in the aggregate demand in the economy. Cost-push inflation, on the other hand, results from supply shocks. This should have strong and positive correlation with the output gap in the economy. However, the relationship existing between inflation and growth depends on the economy. It is possible to have high growth devoid of inflation in cases where the economy’s potential output grows sufficiently to cover up for the increased demand (Samuelson & Nordhaus, 2005). This would also be possible in instances where the actual output of the country is lower than the potential output, and there exists enough spare capacity available to accommodate the demand pressures. In instances where the actual output equals the potential output, the economy would have no spare capacity as it would be operating on full level of employment. In essence, increased growth would eat at the rising inflation. In case the growth of demand persists and there is no commensurate expansion of the productive capacity, the general price level would be likely to experience rapid growth in the long run without additional output growth. This phase of increased inflation is likely to have severe effects on the economy.

The United States has, in the recent times experienced rising inflation rates. The most commonly used measurement of the increase in prices is the CPI (Consumer Price Index), a measure whose basis is the monthly survey carried out by the United States Bureau of Labor Statistics. The Consumer Price Index compares the past and current prices in a sample market basket of goods derived from varied categories such as apparel, transportation, food and housing. While the CPI has its shortcomings or limitations, it is widely recognized that inflation is an extremely consistent fact of the United States economy. The purchasing power of the U.S. dollar has been reducing every year since 1945 except in 1949 an 1950. The inflation rate per year since 1900 to 1970 rested at about 2.5%. This rate went up from 1970, spiking to approximately 6% and going to an all-time high of 13.3% as at 1979 (Mankiw, 2009). However, the inflation rates since then have been close to the range between 2% and 4%. In fact, the rate of inflation in 2010 rested at 1.5%. These variations in inflation have different effects on the GDP of the United States.

One of the effects of inflation on the United States’ GDP revolves around the investment decisions that individuals make. Economists have lays emphasis on the fact that inflation may result in economic damage through distorting consumption and investment decisions. These distortions result from uncertainty in business and households pertaining to the future course of inflation, as well as from the interaction between inflation and the United States’ tax code (Samuelson & Nordhaus, 2005). The interaction between inflation and personal income taxes may distort decisions pertaining to the amount of income that an individual would spend on housing. This can be seen especially in owner-occupied housing where the payments of mortgage interest are deductible. Inflation is built on nominal interest rates, in which case even a moderate increase in the price level results in an increase in the deductions. Housing services representing a proportion of the housing investment returns escape taxation (Masimo, 2001). In essence, moderate to high levels of inflation prompt individuals to invest more in housing than they would do in the case of low rates of inflation. This was the case in the 1970s when there was a real estate boom, which was triggered by distortions induced by inflation. High rates of inflation resulted in an increase in the purchase of homes through increased real, after-tax returns on investments pertaining to owner-occupied housing rather than other investments (Mankiw, 2009). Constant interest rates reinforced the demand uptick. The faster increase in the price level of houses relative to the general price level stimulated an increase in purchasing as individuals feared facing higher prices in the future. The distortions were projected in other markets such as forestry and lumbering (Wessels, 2006). Distortions pertaining to the economic activity could also emanate from uncertainty pertaining to the future course of inflation. However, economists have acknowledged that there is a correlation between high inflation and increased variability in price (Masimo, 2001). Such variations pertaining to the prices would result in uncertainty on how profitable investment projects would be in the future. This uncertainty, therefore, results in an increasingly conservative investment decisions compared to how they would be likely to be (Masimo, 2001). This, ultimately, results in reduced levels of investments, as well as economic growth. Considering that the United States’ Gross Domestic Product (GDP) is the total aggregate output of its entire economy, a reduction in investment would, therefore, result in a reduction in the Gross Domestic Product.

Still on investments, inflation increases the costs pertaining to information and transactions thereby limiting economic development. Inflation makes investment planning difficult due to the resultant uncertainty in the nominal values. Investors would be reluctant to get into contracts in instances where there is uncertainty pertaining to future inflation. Intermediaries such as financial institutions would be less eager to offer long-term financing (Masimo, 2001).

In addition, inflation has a bearing on the employment component of GDP. Scholars note that inflation being an increase in the prices of commodities where a dollar would purchase less products than it used to in the past means that commodities become more expensive. This would cause employees to demand higher wages and salaries in an effort to maintain their way of life or keep up with inflation (Lipsey et al, 2007). However, this results in a reduction in the employment rate as companies try to cut their labor costs to manageable levels. This, therefore, results in reduced household income and a reduction in the GDP or total aggregate output in the economy.

In addition, inflation has an impact on the balance of payment in the United States. When the cost of items increase relative to those of other countries, it becomes cheaper for consumers to obtain these commodities from outside the country than buy them domestically. On the same note, other countries would find the commodities in the United States too expensive (Lipsey et al, 2007). This means that the United States would be importing more than it would be exporting as its commodities would be considerably less competitive in the world market. In essence, trade deficits would occur thereby reducing the Gross Domestic Output and the economic growth at large (Wessels, 2006).

Needless to say, high rates of inflation would trigger negative effects on the Gross Domestic Product of the United States. However, this does not mean that the government should entirely eliminate inflation. However, too high inflation has a bearing on the investment decisions. Investors and lenders would be unable to invest as they cannot predict the future prices of their investment projects. On the same note, the overall costs of investment would be increased especially considering that investors would incur higher costs in gaining information pertaining to future trends, as well as transacting on any investment that they make. In addition, the government would be likely to put a price ceiling in order to limit the interest rates, which discourages investment (Lipsey et al, 2007). In addition, it increases unemployment, and the trade deficits as the United States would be importing more than it exports, thereby reducing the Gross domestic Product. All these factors hamper economic growth and reduce the Gross domestic Product of the country.

References

Lipsey, R. G., Chrystal, K. A., & Lipsey-Chrystal, . (2007). Economics. Oxford [u.a.: Oxford Univ. Press.

Massimo, Ca. (2001) “Investment and the Persistence of Price     Uncertainty,” Research in economics, Vol. 55,

Mankiw, N. G. (2009). Principles of economics. Mason, OH: South-Western Cengage Learning.

Samuelson, P. A., & Nordhaus, W. D. (2005). Economics. New Delhi: Tata mcGraw-Hill.

Wessels, W. J. (2006). Economics. Hauppauge, N.Y: Barron’s.