Negative Multiplier Effect:

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Negative Multiplier Effect Full story from -
http//news.bbc.co.uk/1/hi/wales/4773779.stm
Hundreds of motor firm jobs shed One of Blaenau
Gwent's biggest employers has announced that it
is shedding up to 350 jobs - in addition to 70
cuts already announced. Continental Teves which
makes brake calipers for the motor industry is
switching production to Slovakia. Monday, 15 May
2006
Around 500 people work at the Ebbw Vale plant
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500 well paid jobs lost
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500 well paid jobs lost
Redundant workers have less money to spend
4
500 well paid jobs lost
Redundant workers have less money to spend
Local shops and services (e.g. cinemas) lose
trade and may close too
5
500 well paid jobs lost
Redundant workers have less money to spend
Local shops and services (e.g. cinemas) lose
trade and may close too
Even less money spent in local area more shops
close
6
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
Local shops and services (e.g. cinemas) lose
trade and may close too
Even less money spent in local area more shops
close
7
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
Local shops and services (e.g. cinemas) lose
trade and may close too
Flood of houses for sale in area
Even less money spent in local area more shops
close
8
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
Local shops and services (e.g. cinemas) lose
trade and may close too
Flood of houses for sale in area
Even less money spent in local area more shops
close
Houses prices fall. No-one buying.
9
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
People short of money -with nothing to do.
Local shops and services (e.g. cinemas) lose
trade and may close too
Flood of houses for sale in area
Even less money spent in local area more shops
close
Houses prices fall. No-one buying.
10
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
People short of money -with nothing to do.
Local shops and services (e.g. cinemas) lose
trade and may close too
Rise in crime and antisocial behaviour e.g.
graffiti
Flood of houses for sale in area
Even less money spent in local area more shops
close
Houses prices fall. No-one buying.
11
500 well paid jobs lost
Redundant workers have less money to spend
People decide to move to find work
People short of money -with nothing to do.
Local shops and services (e.g. cinemas) lose
trade and may close too
Flood of houses for sale in area
Rise in crime and antisocial behaviour e.g
graffiti
Even less money spent in local area more shops
close
Area seen as unattractive with problems
Houses prices fall. No-one buying.