2020Local Development & SocietyOpen access

Deindustrialization of rural America: Economic restructuring and the rural ghetto

Gary Paul Green

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Abstract

Since 2000, there has been a significant decline in the number of manufacturing jobs in the US. The manufacturing sector has provided good jobs and benefits, and it has a stronger multiplier effect on regional economies than other industries. Post-industrial theory suggests that there is a natural transition from agriculture to manufacturing, and ultimately, to services. Rural areas, especially those that are small and not adjacent to a metropolitan area, lack the population density and size to support many service sector jobs. Deindustrialization has led to the rise of “rural ghettos.” These places face many of the same problems as urban ghettos, such as high levels of underemployment, selective out-migration, social isolation, drug use, and lack of services.

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What this paper is about

Since 2000, there has been a significant decline in the number of manufacturing jobs in the US. The manufacturing sector has provided good jobs and benefits, and it has a stronger multiplier effect on regional economies than other industries. Post-industrial theory suggests that there is a natural transition from agriculture to manufacturing, and ultimately, to services. Rural areas, especially those that are small and not adjacent to a metropolitan area, lack the population density and size to support many service sector jobs. Deindustrialization has led to the rise of “rural ghettos.” These places face many of the same problems as urban ghettos, such as high levels of underemployment, selective out-migration, social isolation, drug use, and lack of services.

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Available abstract

Since 2000, there has been a significant decline in the number of manufacturing jobs in the US. The manufacturing sector has provided good jobs and benefits, and it has a stronger multiplier effect on regional economies than other industries. Post-industrial theory suggests that there is a natural transition from agriculture to manufacturing, and ultimately, to services. Rural areas, especially those that are small and not adjacent to a metropolitan area, lack the population density and size to support many service sector jobs. Deindustrialization has led to the rise of “rural ghettos.” These places face many of the same problems as urban ghettos, such as high levels of underemployment, selective out-migration, social isolation, drug use, and lack of services.

Key concepts: Deindustrialization, Underemployment, Restructuring, Tertiary sector of the economy, Metropolitan area, Economic restructuring, Manufacturing sector, Economic growth

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