Rust Belt Region

Cards (16)

  • In places that have suffered from deindustrialization, unemployment can trigger a downward spiral of economic decay aka a spiral of decline e.g in Detroit, Rust Belt region. For some towns, this spiral can become almost impossible to reverse which means over time, the quality of life in areas within towns is reflected by a high IMD. 
  • White workers who were more affluent and better educated migrated out of the city aka the 'white flight' which left behing thousands of abandoned buildings. 
  • The rust belt metropolitan areas in this study has 4.5 mn less manufacturing jobs today than they did in 1970 compared with 28.4 mn private sector workers in that year.  
  • Overall 1.2mn fewer people employed in manufacturing in NYC in 2014 than in 1970. 
  • In 2 metropolitan areas (Binghamton and Utica-Rome), manufacturing job losses were about 1/4 of the private sector employment in 1970 while in Buffalo and Rochester the manufacturing losses were about 20% of the total. 
  • The loss of manufacturing jobs = significant drag on job growth in rust belt which explains much of income inequality growth in US since middle part of last century. 
  • Manufacturing jobs provided working class people with relatively high incomes.  
  • Today the opportunities that manufacturing provided to people with high school educations have sharply declined. 
  • Areas with social or government housing and are characterized with a high amount of social problems, including knife, gun and drug crime. Whilst sink estates are usually a British concern, Detroit has the trailer park equivalent. 
  • 36.4% of people are living in poverty
  • Average house price is $45k
  • Average household income is $29481
  • Population change is -5.8% (depopulation)
  • Student enrollment declined over 60% with many students dropping out
  • In Detriot average house price is $7500
  • Reasons for rust belt becoming failed place

    • Global shift - deindustrialisaton
    • White flight- white workers who are affluent and better educated migrated out of the city leaving behind thousands of abandoned buildings and their disposable incomes - cannot contribute to the local economy
    • Lack of education workforce and high crime rates - the result of the spiral of decline
    • Sink estates are areas that have social or government housing and have a high amount of social problems (Tower hamlets) such as knife, gun and drug crime. In the US this is trailer parks