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. Blue Collar

    A working-class person historically defined by hourly rates of ...
  3. Rust Bowl

    A geographic region that was formerly a manufacturing or industrial ...
  4. Capital Intensive

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

    A process or industry that requires a large amount of labor to ...
  6. Freelance Economy

    A freelance economy revolves around hiring self-employed workers ...
RELATED FAQS
  1. When phase of the economic cycle tends to be strongest for companies in the retail ...

    The economic cycle has four phases. The expansionary phase occurs when the economy is growing. During this phase, cyclical ... Read Full Answer >>
  2. What is the average length of the boom and bust cycle in the U.S. economy?

    The boom and bust, better defined as expansion and contraction, business cycles of the U.S. economy averaged 38.7 months ... Read Full Answer >>
  3. During what stage of the economic cycle should I invest in the telecommunications ...

    Later stages of the economic cycle are the best time to invest in the telecommunications sector. Late stages are characterized ... Read Full Answer >>
  4. What can demographics tell us about present and future consumption trends and economic ...

    Demographics gives insight into future population growth, which can reveal present and future consumption trends and economic ... Read Full Answer >>
  5. What role does credit play in the economic boom and bust cycle?

    A great deal of economic literature has been written about the nature of economic cycles, and it has usually led to even ... Read Full Answer >>
  6. What are the typical factors that cause the economy to repeat a boom and bust cycle?

    Not all experts agree about the causes of the business cycle. Most seem to agree that repeatable booms and busts result from ... Read Full Answer >>
Related Articles
  1. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  2. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  3. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  4. Economics

    The Basics Of Tariffs And Trade Barriers

    Everything you need to know - from the different types of tariffs to their effects on the local economy.
  5. Personal Finance

    Are We Losing The Middle Class?

    Find out where your income and lifestyle put you compared to the national average.
  6. Professionals

    Active or Passive ETFs: Which is Better?

    What will be more popular in the near future: active or passive ETFs?
  7. Economics

    What Are The 5 Hottest Emerging Industries In 2015?

    These five industries are poised to explode in 2015.
  8. Stock Analysis

    Invest Here Now: The Hottest Sectors of 2014-15

    These 10 industries have made investors a lot of money over the past year. Is there still room to run?
  9. Stock Analysis

    China: Why Big Investors are Turning Into Bears

    More hedge fund managers and economists are beginning to transition from bull to bear when it comes to China. Here's why.
  10. Mutual Funds & ETFs

    ETF Analysis: Market Vectors Russia

    Learn about Market Vectors Russia ETF, its top holdings, as well as cyclical and political risks associated with investing in the Russian market.

You May Also Like

Hot Definitions
  1. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  2. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  3. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  5. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  6. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!