having grown up in the city, i can tell you that part of what killed the downtown was the mountain and in particular, limeridge mall.
downtown used to be "the place to be" with all sorts of department stores (some are shown in the video). then they made jackson square which was the first mistake. then came limeridge mall... and gigantic free parking lots. i also understand that the taxes in the downtown are high.
as far as industry, hamilton was not "just" about steel, although it was probably the most prominent... hamilton also had international harvester (in video), studebaker, mustard, westinghouse (in video), ceramics (and i don't mean like pottery), etc. but from what i understand from my mom who also grew up in hamilton, the jobs went where there was cheap labour.
the park areas have also become sad. in the name of progress, the gore park fountain was torn out (it has since been replaced). the fountain at gage park where you see the children splashing in the long runoff pool is often empty and even when it is running, you'd likely slice your feet on broken glass or something if you went in.
IMO, when the money and jobs went, for both white and blue collar, the pride went. as people moved out to suburbs or left to find jobs, the area went into further decline.
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