LA and the Owens River Valley Homework Help

Write a brief account of the “Boom of the 80?s” and the emergence of L.A.  What attracted people to the Southland and how would water-The Owens Valley- play a critical role in the region’s development.

LA and the Owens River Valley

The economy of a nation should be in good health to ensure good welfare of its citizens. It is through the economy that people get jobs and earn a living and businesses are also established. Therefore, if the economy suffers, people too will suffer (Changing Times: Pre-1986, 33(1), 7-7.). The US faced long recession in the whole of 1982 and the most hit were farmers. This led to a decline in agricultural exports, prices of crops went down, and interest rates increased sharply.  However, inflation lowered in 1983 and economic growth was renewed. The inflation rate remained at 5% throughout most of 1980’s and 1990’s. All this was as a result of Ronald Reagan’s theory which he employed by lowering tax rates so that people could keep most of what they earned, and increase savings and investments. This economic expansion was witnessed across different industries in the US, as domestic competition for sales also increased. However, the next years posed challenges to most companies as they had to retain their profits and quality yet there was a shift in the market conditions (Singleton, C. J., 1992).

In 1988, the basic rate of income tax was reduced to 25% from 29%. This resulted in increased consumer spending and economic growth. However, Americans got into huge debts which they failed to settle. They could not pay back their loans and this led to financial collapse and high rate of joblessness and a failed stock market.

In the 1860’s, gold and platinum was discovered in the Southland coast, around Orepuki and Round Hill. Other areas were around Nokomai, Waikaia, Waiau catchment, Blackmount, among others. Gold mining continued till 1950’s and this attracted many people to settle in Southland area. The gold rush came with considerable growth in most parts of Los Angeles. However, the Owens Valley area did not experience much growth as it was partly affected by a big earthquake that hit the area. The Owens River formed swamps in flood seasons but there was no financial means for irrigation projects as the residents were small farmers and ranchers. Much of the valley lacked water but all this changed in 1902, when the government pledged to intervene.

In Los Angeles, there was no growth due to lack of water as the Los Angeles River had dried up.  Owens valley water rights had to be bought in order for LA to get water (Libecap, G. D. 2005). An engineer and mayor of LA, Fred Eaton discovered the Owens valley in the 1890’s and suggested that it be considered as an alternative source. After the acquisition of the valley’s water rights, plans were put in place for California’s Owens valley to supply water to Los Angeles city. Considering that LA faces aridity, a reliable water supply would make the city and its population prosper. According to Mecoy, L. (2006, Dec 04), the Owens Valley made great growth possible in Los Angeles. However, environmental and economic problems were realized when it was sent to the South. Acquisition of the new water however made the city grow from 250,000 people in 1900 to 2,208,492 by 1930. This came with gains in wealth and over 325 square miles increase in the total size of Los Angeles (Libecap, G. D., 2005).

References

Libecap, G. D. (2005). The Myth of Owens Valley. Regulation, 28(2), 10-17. Retrieved from

http://search.proquest.com/docview/210522535?accountid=45049

Mecoy, L. (2006, Dec 04). Owens river to flow once more. McClatchy – Tribune Business News,

pp. 1-1.

Retrieved from http://search.proquest.com/docview/463099555?accountid=45049

Singleton, C. J. (1992). Auto industry jobs in the 1980?s: A decade of transition. Monthly Labor

Review, 115(2), 18-18. Retrieved from http://search.proquest.com/docview/235623147?accountid=45049
The 1980?s problems, promises & surprises.(1979). Changing Times (Pre-1986), 33(1), 7-7.

Retrieved from http://search.proquest.com/docview/199148871?accountid=45049