Rust Bowl

AAA

DEFINITION of 'Rust Bowl'

A geographic region that was formerly a manufacturing or industrial powerhouse, but is now in deep, seemingly irreversible decline. While a "Rust Bowl" can occur anywhere in the world, it is most commonly-used with reference to the U.S. Northeast and Midwest, which were previously dominant in automobile and steel manufacturing.

Also known as "rust belt."

INVESTOPEDIA EXPLAINS 'Rust Bowl'

Conjuring up images of abandoned factories and rusting vehicles, the term "Rust Bowl" essentially epitomizes catastrophic economic change. It became increasingly popular in the 1980s as America's global dominance in automobile manufacturing and steel-making was steadily eroded by the rise of formidable competitors in Japan and China respectively. As U.S. market share shrank substantially in these industries, many factories were forced to shut down permanently, eliminating thousands of well-paying jobs and throwing local economies into a downward spiral.

RELATED TERMS
  1. Structural Unemployment

    A longer-lasting form of unemployment caused by fundamental shifts ...
  2. Rust Belt

    A slang term for a geographic region in the United States stretching ...
  3. Land Rehabilitation

    A re-engineering process that attempts to restore an area of ...
  4. Sluggish Economy

    A state in the economy in which the growth is slow, flat or declining. ...
  5. Economy

    The large set of inter-related economic production and consumption ...
  6. Freelance Economy

    A freelance economy revolves around hiring self-employed workers ...
Related Articles
  1. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  2. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  3. Investing Basics

    Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  4. Economics

    What Is An Emerging Market Economy?

    Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors.
  5. 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 ...
  6. 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 ...
  7. Economics

    What is Deflation?

    Deflation is an economic term used to describe a period of declining prices for goods and services. Decreases in the money supply, government spending, consumer demand and business investment ...
  8. Investing

    Why Do We Like A Mature U.S. Tech Industry?

    The U.S. tech industry, particularly blue-chip, mature companies, has room to run in this expensive bull market.
  9. Economics

    What's Demand Elasticity?

    Demand elasticity is the measure of how demand changes as other factors change. Demand elasticity is often referred to as price elasticity of demand because price is most often the factor used ...
  10. Economics

    Law of Supply

    The law of supply is one of the most fundamental principles in microeconomics. According to the law of supply, for all other things remaining constant, the higher the price of a good or service, ...

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. 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 ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center