Dealing with deindustrialization: Economics, politics, and policy during the decline of the New England textile industry, 1920-1960

New England was one of the first areas in the United States to experience the decline of traditional manufacturing, or “deindustrialization,” when the textile industry went into decline in the 1920s. The dissertation looks at why textiles disappeared from the region and examines the efforts of unionists, public officials, and business leaders to formulate a response to this problem.; It is frequently argued that deindustrialization occurs as manufacturers flee unions and costly social legislation, but this interpretation does not hold in the case of New England. The region's textile manufacturers did not run away from the area. They were instead driven out of business by independently owned and managed firms established in the postbellum American South. The emergence of new competitors in developing regions is thus at least as important as conflict between capital and labor in bringing about the decline of established industries.; The bulk of the dissertation examines policies formulated to counter industrial decline in New England. Three different policy directions were pursued. Business groups sought to reduce costs by lessening government intervention and lobbied for lower taxes and the repeal of social legislation. Conversely, unionists and reformers pushed for a larger government role through strong federal intervention to prop up regional industry. Both initiatives encountered significant political resistance, and neither was ever fully implemented.; Developing new industries to replace textiles was a third policy pursued in response to deindustrialization. While state and local government had a role in this endeavor, the principal activity took place in the private sector, as regional business leaders mounted a wide-ranging development effort. Most of their initiatives fell short, but area financiers did support the growth of electronics startup companies through venture capital investments and generous bank loans. This helped lay the groundwork for the “Route 128” complex of high technology companies that arose around Boston. The growth of electronics and other manufacturing and service industries enabled the New England economy to recover in the years after World War II. However, workers and towns hurt by the decline of traditional industry often did not share in this prosperity.