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 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. Stock Analysis

    What Are Qualcomm’s Latest Tech Products?

    Qualcomm has a track record of solid execution, it delivers best-in-class products, and it has built strong relationships with key mobile device vendors.
  7. Stock Analysis

    Why Is Intel’s Technology Long-Lived?

    Every few years or so, Intel releases products on new chip manufacturing technologies that are fundamentally better than what came before.
  8. Stock Analysis

    Does It Still Make Sense To Buy IPG Shares?

    Let's look at IPG's earnings, after their Q4 report, and whether the long-term investing thesis is compelling enough to warrant buying shares today.
  9. Economics

    What's Expansionary Policy?

    Expansionary policy is a macroeconomics concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policy can be implemented in one of two ways, or a combination ...
  10. Economics

    What's a Producer Surplus?

    In economics, producer surplus is the difference between the price at which the producer actually sells a product and the minimum price the producer would have accepted for the product. The surplus ...

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center