From manufacturing-based industrial policy to service-based employment policy?: industrial interests, class politics and the 'Massachusetts miracle'

The aim of this paper is to show that the "Massachusetts miracle" is based on services sector job growth rather than on the manufacturing-based industrial policy to which it is usually attributed and to argue that in the new situation of very low levels of unemployment the priority is for an employment policy directed at the needs of low-paid service sector workers rather than further job creation. Authors start by providing a selective overview of Massachusetts industrial policy during politician Michael Dukakis' administrations. They then evaluate the Massachusetts miracle and attempt to delineate the contradictions between employment policy and industrial policy that are emerging in the full employment state. After considering at some length the political and ideological grounds for the manufacturing focus of state economic policy and the obstacles to services-based policy, they turn to the needs of the new workforce and a series of proposals that are currently. transforming the labor movement and policy agenda in Massachusetts.