Rust Belt

AAA

DEFINITION of 'Rust Belt'

A slang term for a geographic region in the United States stretching from New York through the Midwest that was once involved in steel production and manufacturing. The Rust Belt became an industrial hub due to its proximity to the Great Lakes, canals and rivers, which allowed companies to gain access to raw materials and ship out finished products. This region is called the Rust Belt because the decline in industrial work has left many factories abandoned and uncared for, rusting due to their exposure to the elements. It has also been referred to as the manufacturing belt as well as the factory belt.

INVESTOPEDIA EXPLAINS 'Rust Belt'

Some of America's more prominent industries, such as steel production and automobile manufacturing, were located in the Rust Belt area. They have declined over the years due to the increased cost of domestic labor and the capital intensive nature of manufacturing. Blue collar jobs have moved overseas more and more, forcing local governments to rethink the type of manufacturing and businesses that can profitably operate in the area. The Rust Belt generally begins in central New York and runs west through Pennsylvania, Ohio, Michigan and northern Illinois and Indiana.

RELATED TERMS
  1. Grunt Work

    An expression used to describe thankless and menial work. Grunt ...
  2. Capital Intensive

    A business process or an industry that requires large amounts ...
  3. Labor Intensive

    A process or industry that requires a large amount of labor to ...
  4. Rust Bowl

    A geographic region that was formerly a manufacturing or industrial ...
  5. Blue Collar

    A working-class person historically defined by hourly rates of ...
  6. Marginal Propensity To Invest

    The ratio of change in investment to change in income. The marginal ...
Related Articles
  1. The Economics Of Labor Mobility
    Economics

    The Economics Of Labor Mobility

  2. What Is International Trade?
    Personal Finance

    What Is International Trade?

  3. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  4. The Basics Of Tariffs And Trade Barriers
    Economics

    The Basics Of Tariffs And Trade Barriers

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center