Massachusetts Miracle

The Massachusetts Miracle was a period of economic growth in Massachusetts during most of the 1980s. Before then, the state had been hit hard by deindustrialization and resulting unemployment. During the Miracle, the unemployment rate fell from more than 12% in 1975 to less than 3%, which was accompanied by tax reductions and a drastic increase in personal income.

Background
Massachusetts's industrial economy began to decline during the early 20th century, with the departure of several manufacturing companies. By the 1920s, competition from the South and Midwest, followed by the Great Depression, led to the collapse of the three main industries in Massachusetts: textiles, shoemaking, and precision mechanics. This industrial decline would continue throughout the century; between 1950 and 1979, the number of Massachusetts residents involved in textile manufacturing declined from 264,000 to 63,000. The 1969 closure of the Springfield Armory spurred an exodus of high-paying jobs from western Massachusetts.

Initial growth
The growth was heavily centered in financial services and the high-tech industry (often driven by technology out of Harvard University and MIT), and within Boston and in its suburbs along Route 128. The expansion of the high tech industry along Route 128 has led to the name of the road being used as a nickname for the regional tech economy, much like Silicon Valley.

Notable companies associated with the Miracle include Digital Equipment Corporation, Data General, Wang Laboratories, Prime Computer, Lotus Development Corporation, and Apollo Computer.

Michael Dukakis was Governor of Massachusetts during most of this time and attempted to take credit for the "Miracle" during his campaign for United States President in 1988.

Early 1990s recession
In the early 1990s, Massachusetts, like most of the Northeast, was much more severely affected by the early 1990s recession than the country as a whole, with the unemployment rate nearly reaching 9% by the summer of 1992. However, Massachusetts recovered from the recession faster than the rest of the Northeast, helped by the nationwide tech boom of the 1990s, and by the end of the decade the unemployment rate once again fell below 3%.