Yes, you are correct. And the unions are certainly to blame (along with the environazis) for the demise of the steel mills (and refineries) in places like Gary and Cleveland.
However, other cities have been able to reinvent themselves, at least somewhat, because they tried to do so. Gary wallowed in its own misery for decades, as though burned out buildings were a badge of honor.
I think it's clear that Gary would be a lot closer to a first-world city today, if they had put the ruins of the 60's riots behind them decades ago, and tried to move forward.
In Flint Michigan they are demolishing entire sections of the city in an attempt to downsize it to a reasonable size.
http://www.nytimes.com/2009/04/22/business/22flint.html?_r=1
Jesse Jackson, Calypso Louie, Al Sharpton basically make near a million or more, each, plus their relations as being Black grievance hustlers.
By the way, Detroit has lost one third of its pension due to the collapse and insider investments. Taxes will have to be raised. I’m always curious how a declining population, wealth, pays for increased taxes.