Final answer:
Maine and other New England states shifted towards industrialization and the establishment of new industries like textiles to counter the loss of money from the shipping industry. This economic transition was marked by the creation of mill towns and investments in infrastructure, while policies to support fishing villages could involve subsidies or tax incentives.
Step-by-step explanation:
To compensate for the loss of money from the shipping industry, Maine, like other states affected by the decline in shipping due to the Embargo of 1807 and the War of 1812, turned towards industrialization as a means of economic regeneration. This shift was characterized by the development of new industries, such as the textile industry, which were less reliant on international trade and could benefit from the domestic market. Other policies to support small fishing villages could include subsidies or tax incentives to ease the transition and encourage development in alternative economic sectors such as tourism or local agriculture.
Industrialization played a significant role in the transformation of the economic landscape in the United States post-war. Figures like Francis Cabot Lowell led the establishment of new mill towns, such as Waltham in Massachusetts, diversifying the New England economy beyond the maritime trade. Additionally, investments in infrastructure and the construction of a modern navy helped open new markets for American goods, while protecting the interests of American businesses at home and abroad.