The Rust Belt, formerly the Steel Belt, is an area of industrial decline in the United States. From the late 19th century to late 20th century, the region formed the industrial heartland of the country, with its economies largely based on automobile and steel production, coal mining, and processing of raw materials. The term "Rust Belt" is a dysphemism to describe an industry that has "rusted out", referring to the impact of deindustrialization, economic decline, population loss, and urban decay which is attributable to an area's shrinking industrial sector. The term gained popularity in the U.S. beginning in the 1980s [1] when it was commonly contrasted with the Sun Belt, which was then surging. Common definitions of the region stretch from Upstate New York and western Pennsylvania to southeastern Wisconsin and northern Illinois, including large parts of Ohio, Indiana, and Michigan. Some definitions of the Rust Belt also include parts of Iowa, Kentucky, Maryland, Minnesota, Missouri, New Jersey and West Virginia. Much of the Rust Belt is synonymous with the Great Lakes region of the United States.
The Rust Belt experienced industrial decline starting in the 1950s and 1960s, [2] with manufacturing peaking as a percentage of the U.S. GDP in 1953 and declining ever since. Demand for coal declined as industry turned to oil and natural gas, and American steel was undercut by German and Japanese firms. High labor costs encouraged companies to move production to the Sun Belt or overseas. The American automotive industry declined as consumers turned to fuel-efficient, imported vehicles after the 1973 oil crisis raised the cost of gasoline, and when foreign manufacturers opened factories in the United States, they largely avoided the strongly unionized Rust Belt. Families moved away, leaving cities with falling tax revenues, declining infrastructure, and abandoned buildings. Notable cities in the Rust Belt include Baltimore, Buffalo, Chicago, Cincinnati, Cleveland, Detroit, Milwaukee, Philadelphia, Pittsburgh, Rochester, and St. Louis. [3]
New England was also hit hard by industrial decline, but cities closer to the East Coast, including in the Boston, New York, and Washington metropolitan areas, adapted by diversifying or transforming their economies to shift focus towards services, advanced manufacturing, and high-tech industries. [4]
Since the 1980s, presidential candidates have devoted much of their time to the economic concerns of the Rust Belt region, which includes several populous swing states, including Michigan, Ohio, Pennsylvania, and Wisconsin. These states were crucial to Donald Trump's victories in the 2016 and 2024 presidential elections, as well as his defeat by Democrat Joe Biden in 2020. [5]
In the 20th century, local economies in these states specialized in large-scale manufacturing of finished medium to heavy industrial and consumer products, as well as the transportation and processing of the raw materials required for heavy industry. [6] The area was referred to as the Manufacturing Belt, [7] Factory Belt, or Steel Belt as distinct from the agricultural Midwestern states forming the so-called Corn Belt and Great Plains states that are often called the "breadbasket of America". [8]
The flourishing industrial manufacturing in the region was caused in part by the proximity to the Great Lakes waterways, and abundance of paved roads, water canals, and railroads. After the transportation infrastructure linked the iron ore found in the so-called Iron Range of northern Minnesota, Wisconsin and Upper Michigan with the coking coal mined from the Appalachian Basin in Western Pennsylvania and Western Virginia, the Steel Belt was born. Soon it developed into the Factory Belt with its manufacturing cities: Chicago, Buffalo, Detroit, Milwaukee, Cincinnati, Toledo, Cleveland, St. Louis, Youngstown, and Pittsburgh, among others. This region for decades served as a magnet for immigrants from Austria-Hungary, Poland, and Russia, as well as Yugoslavia, Italy, and the Levant in some areas, who provided the industrial facilities with inexpensive labor. [9] These migrants drawn by labor were also accompanied by African Americans during the Great Migration who were drawn by jobs and better economic opportunity.
Following several "boom" periods from the late-19th to the mid-20th century, cities in this area struggled to adapt to a variety of adverse economic and social conditions. From 1979 to 1982, known as the Volcker shock, [10] [11] the U.S. Federal Reserve decided to raise the base interest rate in the United States to 19%. High-interest rates attracted wealthy foreign "hot money" into U.S. banks and caused the U.S. dollar to appreciate. This made U.S. products more expensive for foreigners to buy and also made imports much cheaper for Americans to purchase. The misaligned exchange rate was not rectified until 1986, by which time Japanese imports, in particular, had made rapid inroads into U.S. markets. [12]
From 1987 to 1999, the U.S. stock market went into a stratospheric rise, and this continued to pull wealthy foreign money into U.S. banks, which biased the exchange rate against manufactured goods. Related issues include the decline of the iron and steel industry, the movement of manufacturing to the southeastern states with their lower labor costs, [13] the layoffs due to the rise of automation in industrial processes, the decreased need for labor in making steel products, new organizational methods such as just-in-time manufacturing which allowed factories to maintain production with fewer workers, the internationalization of American business, and the liberalization of foreign trade policies due to globalization. [14] Cities struggling with these conditions shared several difficulties, including population loss, lack of education, declining tax revenues, high unemployment and crime, drugs, swelling welfare rolls, deficit spending, and poor municipal credit ratings. [15] [16] [17] [18] [19]
Since the term "Rust Belt" is used to refer to a set of economic and social conditions rather than to an overall geographical region of the U.S., the Rust Belt has no precise boundaries. The extent to which a community may have been described as a "Rust Belt city" depends on how great a role industrial manufacturing played in its local economy in the past and how it does now, as well as on perceptions of the economic viability and living standards of the present day.[ citation needed ]
News media occasionally refer to a patchwork of defunct centers of heavy industry and manufacturing across the Great Lakes and Midwestern United States as the snow belt, [21] the manufacturing belt, or the factory belt because of their vibrant industrial economies in the past. This includes most of the cities of the Midwest as far west as the Mississippi River, including St. Louis, and many of those in the Great Lakes and Northern New York. [22] At the center of this expanse lies an area stretching from northern Indiana and southern Michigan in the west to Upstate New York in the east, where local tax revenues as of 2004 [update] relied more heavily on manufacturing than on any other sector. [23] [24]
Prior to World War II, the cities in the Rust Belt region were among the largest in the U.S. However, by the 20th century's end their population had fallen the most in the country. [25]
The linking of the former Northwest Territory with the once-rapidly industrializing East Coast was effected through several large-scale infrastructural projects, most notably the Erie Canal in 1825, the Baltimore and Ohio Railroad in 1830, the Allegheny Portage Railroad in 1834, and the consolidation of the New York Central Railroad following the end of the American Civil War in 1875. A gate was opened between a variety of burgeoning industries on the interior North American continent and the markets of large East Coast cities and Western Europe. [27]
Coal, iron ore, and other raw materials were shipped in from surrounding regions which emerged as major ports on the Great Lakes and served as transportation hubs for the region with proximity to railroad lines. Coming in the other direction were millions of European immigrants, who populated the cities along the Great Lakes shores with then-unprecedented speed. Chicago was a rural trading post in the 1840s but grew to be as big as Paris by the time of the 1893 Columbian Exposition. [27]
Early signs of the difficulty in the northern states were evident early in the 20th century before the "boom years" were even over. Lowell, Massachusetts, once the center of textile production in the U.S., was described in the magazine Harper's as a "depressed industrial desert" as early as 1931, [28] as its textile concerns were being uprooted and sent southward, primarily to the Carolinas.
In the first half of the 20th century, the Great Depression followed by American entry into World War II was followed by a rapid return to economic growth, during which much of the industrial North reached its peak population and industrial output.
The northern cities experienced changes that followed the end of World War II, with the onset of the outward migration of residents to newer suburban communities, [29] and the declining role of manufacturing in the American economy.
Outsourcing of manufacturing jobs in tradeable goods has been an important issue in the region. One source has been globalization and the expansion of worldwide free trade agreements. Anti-globalization groups argue that trade with developing countries has resulted in stiff competition from countries such as China which pegs its currency to the dollar and has much lower prevailing wages, forcing domestic wages to drift downward. Some economists are concerned that long-run effects of high trade deficits and outsourcing are a cause of economic problems in the U.S. [30] with high external debt (amount owed to foreign lenders) and a serious deterioration in the United States net international investment position (NIIP) (−24% of GDP). [26] [31] [32]
Some economists contend that the U.S. is borrowing to fund consumption of imports while accumulating unsustainable amounts of debt. [26] [32] On June 26, 2009, Jeff Immelt, CEO of General Electric, called for the U.S. to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. [33]
Since the 1960s, the expansion of worldwide free trade agreements have been less favorable to U.S. workers. Imported goods such as steel cost much less to produce in Third World countries with cheap foreign labor (see steel crisis). The introduction of pollution regulation in the late 1960's, combined with rapidly increasing U.S. energy costs (see 1970s energy crisis) caused much U.S. heavy industry to begin moving to other countries. Beginning with the recession of 1970–71, a new pattern of deindustrializing economy emerged. Competitive devaluation combined with each successive downturn saw traditional U.S. manufacturing workers experiencing lay-offs. In general, in the Factory Belt employment in the manufacturing sector declined by 32.9% between 1969 and 1996. [34]
Wealth-producing primary and secondary sector jobs such as those in manufacturing and computer software were often replaced by much-lower-paying wealth-consuming jobs such as those in retail and government in the service sector when the economy recovered. [35]
In 1984, an incremental expansion of the U.S. trade deficit with China began combined with growing trade deficits with Japan, South Korea, and Taiwan. As a result, the traditional manufacturing workers in the region have experienced economic upheaval. This effect has devastated government budgets across the U.S. and increased corporate borrowing to fund retiree benefits. [31] [32] Some economists believe that GDP and employment can be dragged down by large long-run trade deficits. [35]
In early 2017, Joseph Stiglitz wrote that "the American middle class is indeed the loser of globalization or free trade" (the diminution of international trade regulations as well as tariffs, taxes) and "China, with its large emerging middle class, is among the big beneficiaries of globalization". "Thanks to globalization, in terms of purchasing-power parity, China actually has already become the largest economy in the world in September 2015". [37]
Studies by David Autor, David Dorn and Gordon Hanson show that free trade with China cost Americans around one million manufacturing workers between 1991 and 2007.Competition from Chinese imports has led to manufacturing job losses and declining wages. They also found that offsetting job gains in other industries never materialized. Closed companies no longer order goods and services from local non-manufacturing firms and former industrial workers may be unemployed for years or permanently. Increased import exposure reduces wages in the non-manufacturing sector due to lower demand for non-manufacturing goods and increased labor supply from workers who have lost their manufacturing jobs. Other work by this team of economists, with Daron Acemoglu and Brendan Price, estimates that competition from Chinese imports cost the U.S. as many as 2.4 million jobs in total between 1999 and 2011. [38] [39]
Avraham Ebenstein, Margaret McMillan, Ann Harrison also pointed out in their article “Why are American Workers getting Poorer? China, Trade and Offshoring” these negative effects of trade with China on American workers. [40]
The Economic Policy Institute, a left-leaning think tank, has claimed that free trade created a large trade deficit in the United States for decades which lead to the closure of many factories and cost the United States millions of jobs in the manufacturing sector. Trade deficits lead to significant wage losses, not only for workers in the manufacturing sector, but also for all workers throughout the economy who do not have a university degree. For example, in 2011, 100 million full-time, full-year workers without a university degree suffered an average loss of $1,800 (~$2,438 in 2023) on their annual salary. [41] [42] According to the Economic Policy Institute, the workers who lost their jobs in the manufacturing sector and who have to accept a reduction in their wages to find work in other sectors, are creating competition, that reduces the wages of workers already employed in these other sectors. The threat of offshoring of production facilities leads workers to accept wage cuts to keep their jobs. [42]
According to the Economic Policy Institute, trade agreements have not reduced trade deficits but rather increased them. The growing trade deficit with China comes from China's manipulation of its currency, dumping policies, subsidies, trade barriers that give it a very important advantage in international trade. In addition, industrial jobs lost by imports from China are significantly better paid than jobs created by exports to China. So even if imports were equal to exports, workers would still lose out on their wages. [43]
According to the Economic Policy Institute, the manufacturing sector is a sector with very high productivity growth, which promotes high wages and good benefits for its workers. Indeed, this sector accounts for more than two thirds of private sector research and development and employs more than twice as many scientists and engineers as the rest of the economy. The manufacturing sector therefore provides a very important stimulus to overall economic growth. Manufacturing is also associated with well-paid service jobs such as accounting, business management, research and development and legal services. Deindustrialisation is therefore also leading to a significant loss of these service jobs. Deindustrialization thus means the disappearance of a very important driver of economic growth. [43]
In 2010, Paul Krugman called for a general tariff rate of 25% on all Chinese products to halt the deindustrialization of the United States and the offshoring of American industries and factories to China. Paul Krugman notes that the trade deficit caused by free trade has been detrimental to the U.S. manufacturing sector: “There is no doubt that increased imports, particularly from China, have reduced manufacturing employment..., the complete elimination of the U.S. manufacturing trade deficit would add about two million manufacturing jobs. [44] [45] He expected Chinese surpluses to destroy 1.4 million American jobs by 2011. He therefore proposed taxing the products of certain countries to force them to readjust their currencies. [46] [47] [48]
In 1999, Francis Fukuyama wrote that the social and cultural consequences of deindustrialization and manufacturing decline that turned a former thriving Factory Belt into a Rust Belt as a part of a bigger transitional trend that he called the Great Disruption: [49] "People associate the information age with the advent of the Internet in the 1990s, but the shift from the industrial era started more than a generation earlier, with the deindustrialization of the Rust Belt in the United States and comparable movements away from manufacturing in other industrialized countries. … The decline is readily measurable in statistics on crime, fatherless children, broken trust, reduced opportunities for and outcomes from education, and the like". [50]
Problems associated with the Rust Belt persist even today, particularly around the eastern Great Lakes states, and many once-booming manufacturing metropolises dramatically slowed down. [51] From 1970 to 2006, Cleveland, Detroit, Buffalo, and Pittsburgh lost about 45% of their population and median household incomes fell: in Cleveland and Detroit by about 30%, in Buffalo by 20%, and Pittsburgh by 10%. [52]
During the mid-1990s, several Rust Belt metropolitan areas experienced a suspension in negative growth, indicated by stabilizing unemployment, wages, and populations. [53] During the first decade of the 21st century, however, a negative trend still persisted: Detroit, Michigan lost 25.7% of its population; Gary, Indiana, 22%; Youngstown, Ohio, 18.9%; Flint, Michigan, 18.7%; and Cleveland, Ohio, 14.5%. [54]
City | State | Population | |||
---|---|---|---|---|---|
change | 2020 [55] | 2000 | Peak | ||
Detroit, Michigan | Michigan | -32.81% | 639,111 | 951,270 | 1,849,568 (1950) |
Gary, Indiana | Indiana | -31.97% | 69,903 | 102,746 | 178,320 (1960) |
Flint, Michigan | Michigan | -34.97% | 81,252 | 124,943 | 196,940 (1960) |
Saginaw, Michigan | Michigan | -28.47% | 44,202 | 61,799 | 98,265 (1960) |
Youngstown, Ohio | Ohio | -26.77% | 60,068 | 82,026 | 170,002 (1930) |
Cleveland, Ohio | Ohio | -22.11% | 372,624 | 478,403 | 914,808 (1950) |
Dayton, Ohio | Ohio | -17.17% | 137,644 | 166,179 | 262,332 (1960) |
Niagara Falls, New York | New York | -12.45% | 48,671 | 55,593 | 102,394 (1960) |
Baltimore, Maryland | Maryland | -5.7% | 585,708 | 620,961 | 949,708 (1950) |
St. Louis, Missouri | Missouri | -13.39% | 301,578 | 348,189 | 856,796 (1950) |
Decatur, Illinois | Illinois | -13.85% | 70,522 | 81,860 | 94,081 (1980) |
Canton, Ohio | Ohio | -12.29% | 70,872 | 80,806 | 116,912 (1950) |
Buffalo, New York | New York | -4.89% | 278,349 | 292,648 | 580,132 (1950) |
Toledo, Ohio | Ohio | -13.63% | 270,871 | 313,619 | 383,818 (1970) |
Lakewood, Ohio | Ohio | -10.07% | 50,942 | 56,646 | 70,509 (1930) |
Pittsburgh, Pennsylvania | Pennsylvania | -9.44% | 302,971 | 334,563 | 676,806 (1950) |
Pontiac, Michigan | Michigan | -7.13% | 61,606 | 66,337 | 85,279 (1970) |
Springfield, Ohio | Ohio | -10.25% | 58,662 | 65,358 | 82,723 (1960) |
Akron, Ohio | Ohio | -12.26% | 190,469 | 217,074 | 290,351 (1960) |
Hammond, Indiana | Indiana | -6.22% | 77,879 | 83,048 | 111,698 (1960) |
Cincinnati, Ohio | Ohio | -6.63% | 309,317 | 331,285 | 503,998 (1950) |
Parma, Ohio | Ohio | -5.26% | 81,146 | 85,655 | 100,216 (1970) |
Lorain, Ohio | Ohio | -6.74% | 64,028 | 68,652 | 78,185 (1970) |
Chicago, Illinois | Illinois | -5.17% | 2,746,388 | 2,896,016 | 3,620,962 (1950) |
South Bend, Indiana | Indiana | -4.02% | 103,453 | 107,789 | 132,445 (1960) |
Charleston, West Virginia | West Virginia | -8.53% | 48,864 | 53,421 | 85,796 (1960) |
In the late 2000s, American manufacturing recovered faster from the Great Recession of 2008 than the other sectors of the economy, [56] and a number of initiatives, both public and private, are encouraging the development of alternative fuel, nano and other technologies. [57]
Along with the neighboring Golden Horseshoe of southern Ontario, the Rust Belt composes one of the world's major manufacturing regions. [58] [59]
Delving into the past and musing on the future of Rust Belt states, a 2010 Brookings Institution report suggests that the Great Lakes region has a sizable potential for transformation, citing already existing global trade networks, clean energy/low carbon capacity, developed innovation infrastructure, and higher educational network. [60]
Different strategies were proposed in order to reverse the fortunes of the former Factory Belt including building casinos and convention centers, retaining the creative class through arts and downtown renewal, encouraging the knowledge economy type of entrepreneurship, and other steps. This includes growing new industrial base with a pool of skilled labor, rebuilding the infrastructure and infrasystems, creating research and development-focused university-business partnerships, and close cooperation between central, state and local government, and business. [61]
New types of research and development-intensive nontraditional manufacturing have emerged recently in the Rust Belt, including biotechnology, the polymer industry, infotech, and nanotech. Information technology is seen as representing an opportunity for the Rust Belt's revitalization. [62] Among the successful recent examples is the Detroit Aircraft Corporation, which specializes in unmanned aerial systems integration, testing and aerial cinematography services. [63]
In Pittsburgh, robotics research centers and companies such as the National Robotics Engineering Center and Robotics Institute, Aethon Inc., American Robot Corporation, Automatika, Quantapoint, Blue Belt Technologies, and Seegrid are creating state-of-the-art robotic technology applications. Akron, a former "Rubber Capital of the World" that lost 35,000 jobs after major tire and rubber manufacturers Goodrich, Firestone, and General Tire closed their production lines, is now again well known around the world as a center of polymer research with four hundred polymer-related manufacturing and distribution companies operating in the area. The turnaround was accomplished in part by a partnership between Goodyear Tire & Rubber Company, which chose to stay, the University of Akron, and the city mayor's office. The Akron Global Business Accelerator that jump-started a score of successful business ventures in Akron resides in the refurbished B.F. Goodrich tire factory. [64]
Additive manufacturing, or 3D printing, creates another promising avenue for the manufacturing resurgence. Such companies as MakerGear from Beachwood, Ohio, or ExOne Company from North Huntingdon, Pennsylvania, are designing and manufacturing industrial and consumer products using 3-D imaging systems. [65]
In 2013, The Economist reported a growing trend of reshoring, or inshoring, of manufacturing when a growing number of American companies were moving their production facilities from overseas back home. [66] Rust Belt states can ultimately benefit from this process of international insourcing.
There have also been attempts to reinvent properties in the Rust Belt in order to reverse its economic decline. Buildings with compartmentalization unsuitable for today's uses were acquired and renewed to facilitate new businesses. These business activities suggest that the revival is taking place in the once-stagnant area. [67] The CHIPS and Science Act, which became effective in August 2022, was designed to rebuild the manufacturing sector with thousands of jobs and research programs in states like Ohio focusing on making products like semiconductors due to the global chip shortage of the early 2020s. [68]
The Rust Belt is depicted in various films, television shows, and songs. It is the subject of the popular Billy Joel song, "Allentown," originally released on The Nylon Curtain album in 1982. The song uses Allentown as a metaphor for the resilience of working class Americans in distressed industrial cities during the recession of the early 1980s.
The Rust Belt is the setting for Philipp Meyer's 2009 novel American Rust and its 2021 television adaptation. A core plot device of both is the economic, social, and population decline [69] facing the fictional Western Pennsylvanian town of Buell, itself brought about by thorough de-industrialization typical of the region. [70]
The 21st century evolution of this region of the U.S. is also depicted through the fictional town of New Canaan, Ohio, in Stephen Markley's 2018 bestseller novel, Ohio. The town is described through both the teenage glamour of high school lens in the early 2000s and the harsh reality lens of what the town became 10 years later.
The economy of Honduras is based mostly on agriculture, which accounts for 14% of its gross domestic product (GDP) in 2013. The country's leading export is coffee (US$340 million), which accounted for 22% of the total Honduran export revenues. Bananas, formerly the country's second-largest export until being virtually wiped out by 1998's Hurricane Mitch, recovered in 2000 to 57% of pre-Mitch levels. Cultivated shrimp is another important export sector. Since the late 1970s, towns in the north began industrial production through maquiladoras, especially in San Pedro Sula and Puerto Cortés.
The economy of Taiwan is a highly developed free-market economy. It is the 8th largest in Asia and 20th-largest in the world by purchasing power parity, allowing Taiwan to be included in the advanced economies group by the International Monetary Fund. Taiwan is notable for its rapid economic development from an agriculture-based society to an industrialised, high-income country. This economic growth has been described as the Taiwan Miracle. It is gauged in the high-income economies group by the World Bank. Taiwan is one of the most technologically advanced computer microchip and high-tech electronics industries makers in the world.
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors and raise government revenue. Opponents argue that protectionist policies reduce trade, and adversely affect consumers in general as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in the countries against which the protections are implemented.
A blue-collar worker is a person who performs manual labor or skilled trades. Blue-collar work may involve skilled or unskilled labor. The type of work may involve manufacturing, retail, warehousing, mining, excavation, carpentry, electricity generation and power plant operations, electrical construction and maintenance, custodial work, farming, commercial fishing, logging, landscaping, pest control, food processing, oil field work, waste collection and disposal, recycling, construction, maintenance, shipping, driving, trucking, and many other types of physical work. Blue-collar work often involves something being physically built or maintained. In social status, blue-collar workers generally belong to the working class.
In economics, Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector and a decline in other sectors.
The economic history of the United States spans the colonial era through the 21st century. The initial settlements depended on agriculture and hunting/trapping, later adding international trade, manufacturing, and finally, services, to the point where agriculture represented less than 2% of GDP. Until the end of the Civil War, slavery was a significant factor in the agricultural economy of the South. The US was the world's largest economy for decades, possibly surpassed in the 21st century.
Tariffs have historically served a key role in the trade policy of the United States. Their purpose was to generate revenue for the federal government and to allow for import substitution industrialization by acting as a protective barrier around infant industries. They also aimed to reduce the trade deficit and the pressure of foreign competition. Tariffs were one of the pillars of the American System that allowed the rapid development and industrialization of the United States.
The Great Divergence or European miracle is the socioeconomic shift in which the Western world overcame pre-modern growth constraints and emerged during the 19th century as the most powerful and wealthy world civilizations, eclipsing previously dominant or comparable civilizations from the Middle East and Asia such as Qing China, Mughal India, the Ottoman Empire, Safavid Iran, and Tokugawa Japan, among others.
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry.
The economy of Pittsburgh, Pennsylvania is diversified, focused on services, medicine, higher education, tourism, banking, corporate headquarters and high technology. Once the center of the American steel industry, and still known as "The Steel City", today the city of Pittsburgh has no steel mills within its limits, though Pittsburgh-based companies such as US Steel, Ampco Pittsburgh and Allegheny Technologies own several working mills in the Pittsburgh metropolitan area.
North American Free Trade Agreement's impact on United States employment has been the object of ongoing debate since the 1994 inception of the North American Free Trade Agreement (NAFTA) with Canada and Mexico. NAFTA's proponents believe that more jobs were ultimately created in the USA. Opponents see the agreements as having been costly to well-paying American jobs.
Reindustrialization is the economic, social, and political process of organizing national resources for the purpose of re-establishing industries in response to deindustrialization.
Foreign trade of the United States comprises the international imports and exports of the United States. The country is among the top three global importers and exporters.
The steel crisis was a recession in the global steel market during the 1973–1975 recession and early 1980s recession following the post–World War II economic expansion and the 1973 oil crisis, further compounded by the 1979 oil crisis, and lasted well into the 1980s.
The economy of Youngstown, Ohio, United States, flourished in the 19th and early 20th centuries, with steel production reaching all-time highs at that time. The steel boom led to an influx of immigrants to the area looking for work, as well as construction of skyscrapers in the area. The city's population peaked at 170,002 in 1930, just at the onset of the Great Depression. World War II also brought a great demand for steel. After World War II, demand for steel dropped off dramatically, and industrial base of Youngstown began to see a decline.
Manufacturing is a vital economic sector in the United States of America. The United States is the world's second-largest manufacturer after the People's Republic of China with a record high real output in 2021 of $2.5 trillion.
Deindustrialisation refers to the process of social and economic change caused by the removal or reduction of industrial activity and employment in a country or region, especially heavy industry or manufacturing industry. Deindustrialisation is common to all mature Western economies, as international trade, social changes, and urbanisation have changed the financial demographics after World War II. Phenomena such as the mechanisation of labour render industrial societies obsolete, and lead to the de-establishment of industrial communities.
Job creation and unemployment are affected by factors such as aggregate demand, global competition, education, automation, and demographics. These factors can affect the number of workers, the duration of unemployment, and wage rates.
The Trump tariffs were protectionist trade initiatives during the first Trump administration against Chinese imports. During the first presidency of Donald Trump, a series of tariffs were imposed on China as part of his "America First" economic policy to reduce the United States trade deficit by shifting American trade policy from multilateral free trade agreements to bilateral trade deals. In January 2018, Trump imposed tariffs on solar panels and washing machines of 30–50%. In March 2018, he imposed tariffs on steel (25%) and aluminum (10%) from most countries, which, according to Morgan Stanley, covered an estimated 4.1% of U.S. imports. In June 2018, this was extended to the European Union, Canada, and Mexico. The Trump administration separately set and escalated tariffs on goods imported from China, leading to a trade war.
The Northern states, once the foundry of the nation, are known now as the Rust Belt or the Snow Belt, in invidious comparison to the supposedly booming Sun Belt.