{"id":1759,"date":"2020-05-01T20:56:00","date_gmt":"2020-05-01T20:56:00","guid":{"rendered":"http:\/\/scholarscollaborative.org\/Hartford\/?p=1759"},"modified":"2020-05-01T20:58:11","modified_gmt":"2020-05-01T20:58:11","slug":"hartfords-economic-woes-of-the-1990s-what-occurred-and-how-hartford-plans-to-bounce-back","status":"publish","type":"post","link":"https:\/\/scholarscollaborative.org\/Hartford\/social-issues\/hartfords-economic-woes-of-the-1990s-what-occurred-and-how-hartford-plans-to-bounce-back\/","title":{"rendered":"Hartford’s Economic Woes of the 1990s- What Occurred and How Hartford Plans to Bounce Back"},"content":{"rendered":"
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Recently, I asked an older family member what they thought of Hartford\u2019s economy. Their response was rather intriguing: \u201cEverything seemed wonderful, until the \u201890s happened\u201d. I, of course, was not alive in the 1990s, and would have no understanding of how prosperous (or not) the city\u2019s economy would have been during this time. However, this individual\u2019s assertion that the 1990s marked economic downfall for the Constitution State\u2019s capital grabbed my interest. Now, I have sought out to explore that thesis, and truly understand why so many Connecticut (and Hartford) residents feel that way.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

Hartford Sees Great Economic Loss <\/h3>\n
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The 1980s were a fa\u00e7ade of economic hope and prosperity across the nation, especially in Connecticut. Real estate was booming, office space in Hartford tripled, and job growth was unprecedented. However, the late 1980s saw the first signs of economic trouble for the state as a whole as the nation\u2019s economy slowed from a full-out sprint to a leisurely walk. Hartford began to truly see the effects of the recession of the 1990s in areas of insurance, defense, and business capital. According to University of Connecticut economist Fred Carstensen, Connecticut and the capital were \u201c\u2019old-line manufacturing, old-line financial services and old-line defense, and all three of them went south at the same time\u2019\" (Carstensen qtd. Gershon, 2008). Defense contracts in Hartford made up 5.7% of personal income between the years of 1989 and 1991, accordioning to the Comptroller of Connecticut. However, between 1992 and 1995, that dropped to a mere 1.3%. As defense spending came to a halt, the ripple effects were undeniable. The transportation industry, as well as the manufacturing industry, saw losses as well. By October of 1996, Hartford saw an unemployment rate of 9.2%. There was a similar spike in poverty. In 1970, Hartford\u2019s poverty rate was 17%. By 1990, that number nearly doubled, with a rate of 27.5%.<\/p>\n<\/div>\n<\/div><\/div><\/div>

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Connecticut Towns With High Levels of Unemployment (October 1996)<\/h3><\/div><\/div><\/div><\/div>
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Clarion Hotel Hartford (closed)<\/h3><\/div><\/div><\/div>
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Small restaurants began to close their doors and hotels, such as the 36-year-old Summit or the 410-room Hilton, began to either close down, leading to \u201cmore than 40 percent\u201d of the city\u2019s hotel rooms to disappear nearly overnight (Johnson 1990). Insurance companies, such as Travelers, reduced employment opportunities. Perhaps the biggest loss was in the convention section, as Hartford began to struggle in the trade they preciously dominated. As expensive convention accounts migrated to competitors in Springfield, Massachusetts, or Mystic, Connecticut, Hartford began to lose its stake as a convention icon. Concerts and major events, such as the 1981 visit by the Rolling Stones to the Hartford Civic Center, also kept the economy afloat. However, as the popularity of outdoor shows increased, and the demand for only 16,000 seats in a stadium decreased, even the Civic Center saw declines in demand.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Although the recession ended in late 1992, the economic impact it had on Hartford lasted for years to come. Its impact was especially felt in residency.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

Residents Leave the City, as Well as Visitors<\/h3>\n
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As the economy seemed to decline further and further in Hartford, fewer and fewer residents were able to find reasons to remain in the city. Between the years of 1990 and 1994, Hartford saw a population loss of 15,543. This staggering 11.1% loss was, as reported by the Comptroller, \u201cthe largest in the nation for a large city during the four-year period\u201d. This extreme population shift was record-breaking and its population of 124,196 in 1994 was the lowest it had been since prior to the first World War. Residents began to pack up and move out of the city to live a more suburban lifestyle, and individuals with \u201cmoderate- income\u201d left the city behind, with the only remaining residents being populations without the means to leave, meaning Hartford became \u201cpoorer [in 1995] than it was five years ago\u201d (Winkle qtd Swift 1995). Americans began to desire green backyards, bigger homes, and smaller populations. Cities, such as Hartford, suffered the consequences. Naturally, the business left with the residents. With a smaller local population, Hartford\u2019s economy had a difficult time getting back on its feet. Fewer apartments and homes were being sought after, restaurants saw less patronage, and small businesses saw less foot traffic.<\/p>\n<\/div>\n<\/div><\/div><\/div>

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Shrinking Cities and Suburbs: Population losses between 1990 and 1994<\/h3><\/div><\/div><\/div><\/div>
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As many local residents left, it became more and more difficult to attract visitors to the Insurance Capital of the World. The largest population of residents to leave the city where middle- and upper-class white residents, who now found themselves able to afford housing in other communities. Lower- or working-class residents were unable to leave, and the population of residents inhabiting Section 8 housing rose dramatically. The cities nightlife went from alive to dead nearly overnight. Yet, with the city\u2019s population dwindling, tourism seemed to be Hartford\u2019s last hope at keeping restaurants, clubs, and retail locations open. As the president of the Convention and Visitors Bureau stated, \u201c\u2019 It\u2019s a very fragile balance\u201d\u2019 (Trafton qtd Johnson 1990).<\/p>\n<\/div>\n<\/div><\/div>

Iconic Businesses Leave the Capital in Droves <\/h3>\n
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In 1835, Packard & Brown\u2019s bookstore opened its doors on State Street. Over the course of the next 158 years, the store became a staple of Hartford, even as it changed its name 6 more times and moved around the capital city. Literary icons, such as Mark Twain, would often walk through the front doors to browse the aisles. In 1979, the Epstein family purchased what was then known as Huntington\u2019s, which was known as the \u201coldest continuously operating bookstore in the United States\u201d (McClurg 1993). However, 14 years later, owner David Epstein made the difficult decision to permanently close the doors of Huntington\u2019s.<\/p>\n

Epstein described a once lively and exciting place, where he spent his childhood with his father. However, as the years progressed, the Epstein family began to feel trapped in the rows of books, as business slowly declined. As the Hartford Courant reported in 1993, business dropped off 25 to 32 percent in just the first three months of the year. The economic strain was due to a variety of variables: Big box stores, such as Barnes & Noble, were rising in popularity. The downtown area saw fewer and fewer workers, due to recent layoffs. A recession was at full swing. Despite Epstein\u2019s best efforts, Huntington\u2019s became more of a chore than a love, and he had to shut its doors. Many patrons were shocked by the news, such as Mina Santomenno, who stated that Huntington\u2019s was \u201c\u2019more than a bookstore\u201d\u2019 to her (Santomenno qtd McClurg 1993).<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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The Sage Allen Clock in Hartford<\/h3><\/div><\/div><\/div>
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Huntington\u2019s was not the only Hartford-based business that closed permanently in the 1990s. Sage Allen & Co., founded in 1889 as a department store, closed its flagship location in Hartford in 1990. Although the store became a chain, its original location shut its doors right where the journey began, with its final location closing in 1993. Memories of Sage Allen & Co. were sweet, between the smell of spicy sticky buns to its landmark sidewalk clock.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

Can Hartford Bounce Back?<\/h3>\n
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The history of the 1990s paint a bleak picture for the future of Hartford. However, in recent years, the city has begun to ramp up efforts to revitalize once abandoned spaces, and pump life back into empty streets.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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In late 2019, it was announced that the old Sage Allen & Co. building was up for a remodel. Laz Investments along with their partners, Lexington Partners and Shelbourne Global Solutions, decided to team up in an attempt to reconfigure the historic building, making it into fun, modern apartments. The units will mostly consist of one-bedroom apartments and studios, which is in much higher demand than the typical 3-bedroom set up. Developers, such as Stephen Fitzsimmons, hope that bringing new residents back into Hartford could give the economy a push back towards prosperity. Fitzsimmons is hoping that new, swanky apartments could be \u201c\u2019invigorating\u2019\u201d for Hartford, especially for small businesses and restaurants, who have been struggling to remain open in recent years (Fitzsimmons qtd Raff 2019).<\/p>\n<\/div>\n<\/div><\/div><\/div>

Apartments to be constructed inside old Sage-Allen building<\/h3>