Economic growth

Maine intrigued entrepreneurs who hoped to make their fortune in furs, fisheries, timber, and land development. The first three proved to be lucrative for a few, but the climate, border troubles, and the availability of more fertile land in the newer territories to the west curtailed settlement of the area before and after statehood. The period of greatest economic growth came between 1830 and 1860, when the production of lumber, ice, granite, and lime (extracted from limestone), along with fishing and shipbuilding, dominated the state’s economy. Coastal communities flourished and railroads developed as Maine merchants traded around the world.

The American Civil War and the Industrial Revolution diverted workers and capital from Maine during the last decades of the 19th century. Textiles and paper products became the primary sources of manufacturing employment, while fisheries and agriculture continued as important but uncertain sources of income. The details of economic activity changed during the first half of the 20th century, but the overall picture remained one of precarious prosperity and extreme susceptibility to swings in the national economy.

Maine’s economy and employment profile have changed significantly since the mid-20th century. Most notable has been the decline of the longtime dominant manufactures of textiles, shoes, processed food, paper, wood products, and electronic components. In addition, agricultural production (poultry, dairy products, and potatoes) has shrunk, fish stocks on the offshore banks have been largely exhausted, and several military installations have closed. Balancing these developments has been a dramatic expansion of tourism. The state’s environment was also significantly affected by several factors during this period, including a major increase in clear-cutting Maine’s forests, cleaning up state rivers, closing the Maine Yankee power plant, strict enforcement of state and local environmental regulations, and unprecedented population growth during the 1970s and ’80s. The state’s cultural landscape underwent changes as well, signifying a greater consideration for minority populations. In 1980 the U.S. government agreed to pay the Passamaquoddy and Penobscot Indians more than $80 million for lands seized in the 1700s. Much of the money was invested in land purchased in unpopulated areas of the state, primarily from large forestry companies, as well as in other economic enterprises. The expression of the French heritage of some of Maine’s population, long suppressed by the majority, has experienced a resurgence. Annual social events focusing on Franco-American heritage take place in areas of the state that have heavily French-descended populations.

Political development

Jeffersonian and Jacksonian Democrats held sway from statehood until the rise of the Whigs and the emergence of the Republican Party. The abolition movement gave the Republican Party its start in Maine in 1854, and the Grand Old Party dominated the state for almost a century. Democrats scored temporary gains in the elections of 1910 and 1912 and, during the Great Depression, in the elections of 1932 and 1934, but it was not until 1954 that sustained competition began to develop between the two major parties. Since the 1950s Maine has had both Republican and Democratic, as well as politically independent, governors, and the legislature has been increasingly controlled by Democrats.

Maine’s social and political history has been dominated by struggles against the adversity of frontier life and economic limitations, coupled with strong drives within the state for social reform, including world peace, abolition of slavery, prohibition, and woman suffrage. The question of same-sex unions came to the fore in May 2009 when, under a Democratic governor who initially opposed the measure, Maine legalized same-sex marriage. Although voters repealed the law in November, they subsequently approved gay marriage in a 2012 referendum.