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Christmas, future propects in Connecticut

By SHIHOKO GOTO, Senior Business Correspondent

ESSEX, Conn., Dec. 24 (UPI) -- The tiny town of Essex would do Martha Stewart proud.

Once a bustling river port on the mouth of the Connecticut River, Essex now showcases a Main Street lined with quaint whitewashed wooden houses and antique shops throughout the year. And at Christmastime, the town comes alive with bright lights adorning every building, and a festive traffic circle, directing cars coming in from New York, decked with yuletide ornaments.

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Inside the Griswold Inn, one of the town's most established eateries, the seasonal merriment is in full swing on the last Sunday before Christmas as the host and servers all donned period Victorian costumes as they served lobster bisque and prime rib. Not an empty seat is to be had as locals and tourists crowded the restaurant to remember the year gone by and share stories over good food in front of a roaring open fire.

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But the year to come weighs heavy for many in this New England state. For one, many in its southern cities such as Stamford, Wilton and Westport commuted from Connecticut into Manhattan, and were among those who died in the World Trade Center. But even for those did manage to escape the Sept. 11 attacks uninjured, it will not be easy to shrug off government warnings that more attacks are likely, or to dismiss news that another plane just narrow missed being blown up.

It is not, however, simply the terrorist strikes that have left a permanent scar on the people of Connecticut, clouding their hopes for the future. The decline of the insurance sector has also proved to be a big blow for the state, and not least because the terrorist attacks have increased insurance premiums and crippled a large number of firms.

Not for nothing was Hartford once known as the insurance capital of the world, as the state's advantageous tax policies encouraged the vast majority of the country's biggest insurers to call the state capital its home base, which in turn provided jobs to hundreds of thousands in the region. But the buyouts and mergers of insurance companies over the past decade has led to an exodus of insurance companies' corporate headquarters from Connecticut, leaving many white-collar workers stranded.

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Meanwhile, the machine tool industry that supported the state's growth for over a century is now competing with cheaper labor overseas. Admittedly, a small number of defense-related manufacturers will continue to be in business in the state as the government continues to support them in the name of national security, wanting to keep at least part of its defense operations within its own borders. However, the relocation of most companies offshore has led once booming cities like Meriden something of a rough ghost town, with empty factories and abandoned warehouses.

At first blush, it seems like Connecticut's future rests largely on cashing in on Martha Stewart's vision of the United States, promoting its cuteness shamelessly. Indeed, the cobblestoned streets of quaint towns like Greenwich are decked out with Christmas decorations, attracting merry-makers by the carloads. But such cities are becoming fewer, and limit growth opportunities especially for the younger generation.

There are, however, signs of growth in some of the most unexpected places. Casinos are booming in Connecticut as native American Indians are given unique territorial rights to operate gambling facilities on what was once their reservations, much to the delight of locals who flock to the slot machines and roulette.

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Meanwhile, some towns have actually benefited from the terrorist attacks. Stamford, which had seen a rise in office vacancies since the U.S. economy started heading south at the beginning of the year, has seen demand for those same spaces go up since Sept. 11 as companies dislocated from downtown Manhattan relocated to the city.

But whatever the future may hold, church attendance over Christmas is expected to be particularly high this year across the state, as people gather to unite against terrorism, which has hit so many here. And the whitewashed wooden houses and brick mansions will continue to evoke memories of Christmas past, as they hold up the traditions of yuletide merriment.

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