The Massachusetts Miracle was a period of economic growth in

Massachusetts Massachusetts (Massachusett: ''Muhsachuweesut Massachusett_writing_systems.html" ;"title="nowiki/> məhswatʃəwiːsət.html" ;"title="Massachusett writing systems">məhswatʃəwiːsət">Massachusett writing systems">məhswatʃəwiːsət'' En ...

during most of the 1980s. Before then, the state had been hit hard by

deindustrialization 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. There are different interp ...

and resulting

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the refe ...

. 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.

Initial growth

The growth was heavily centered in

financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...

and high-tech industry (often driven by technology out of

Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of highe ...

and

MIT The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the m ...

), and within

Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...

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 Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical areas San Mateo Cou ...

. Notable companies associated with the Miracle include

Digital Equipment Corporation Digital Equipment Corporation (DEC ), using the trademark Digital, was a major American company in the computer industry from the 1960s to the 1990s. The company was co-founded by Ken Olsen and Harlan Anderson in 1957. Olsen was president un ...

Data General Data General Corporation was one of the first minicomputer firms of the late 1960s. Three of the four founders were former employees of Digital Equipment Corporation (DEC). Their first product, 1969's Data General Nova, was a 16-bit minicompute ...

Wang Laboratories Wang Laboratories was a US computer company founded in 1951 by An Wang and G. Y. Chu. The company was successively headquartered in Cambridge, Massachusetts (1954–1963), Tewksbury, Massachusetts (1963–1976), and finally in Lowell, Massachus ...

Prime Computer Prime Computer, Inc. was a Natick, Massachusetts-based producer of minicomputers from 1972 until 1992. With the advent of PCs and the decline of the minicomputer industry, Prime was forced out of the market in the early 1990s, and by the end of ...

Lotus Development Corporation Lotus Software (called Lotus Development Corporation before its acquisition by IBM) was an American software company based in Massachusetts; it was "offloaded" to India's HCL Technologies in 2018. Lotus is most commonly known for the Lotus 1- ...

and

Apollo Computer Apollo Computer Inc., founded in 1980 in Chelmsford, Massachusetts, by William Poduska (a founder of Prime Computer) and others, developed and produced Apollo/Domain workstations in the 1980s. Along with Symbolics and Sun Microsystems, Apollo ...

Michael Dukakis Michael Stanley Dukakis (; born November 3, 1933) is an American retired lawyer and politician who served as governor of Massachusetts from 1975 to 1979 and again from 1983 to 1991. He is the longest-serving governor in Massachusetts history ...

was

Governor of Massachusetts The governor of the Commonwealth of Massachusetts is the chief executive officer of the government of Massachusetts. The governor is the head of the state cabinet and the commander-in-chief of the commonwealth's military forces. Massachuset ...

during most of this time and attempted to take credit for the "Miracle" during his campaign for United States President in 1988.Lentz, Philip (August 23, 1988)
"Dukakis Had Help With `Massachusetts Miracle`"
''Chicago Tribune''. Retrieved September 07, 2014.

The early 1990s recession

In the early 1990s, Massachusetts, like most of the Northeast, was much more severely affected by the

early 1990s recession The early 1990s recession describes the period of economic downturn affecting much of the Western world in the early 1990s. The impacts of the recession contributed in part to the 1992 U.S. presidential election victory of Bill Clinton over incu ...

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%.

References

1980s economic history 1980s in Massachusetts Economic booms Economic history of Massachusetts {{econ-hist-stub