The Rust Belt, USA

The decline in heavy manufacturing industry in the USA’s Rust Belt began in the 1950s and led to higher levels of unemployment in the region:

-cheaper imports increased

-Manufacturing shifted due to cheap labour

Cities such as Buffalo, Cleveland, Detroit and Pittsburgh shared several difficulties:

-Population loss

-Declining tax revenues

-Higher levels of unemployment

-Limited opportunity for retraining

-Increased crime and drug use

Negative multiplier- a decreased demand for services would mean a decreased demand for spending in the area, resulting in a decreased demand and closure of services.

Teeside’s Decline - UK rust belt

Teeside’s steelworks closed down which caused hundreds of workers to become unemployed. The area became deprived due to shops having to close down.

-Former shipbuilding and steelworks town in Teeside area

-Unemployment rate twice the national average

-Over 25% of shops are empty