Niagara Falls: A Tale of Two Cities

Sept. 16, 2008 — -- As manufacturing jobs left the area in droves, upstate New York's economy has been struggling for well over a decade.

Rome, N.Y., once known as Copper City for its wire mills, suffered a major blow when an Air Force base shut down in 1995.

As "GMA" passed through the city on its Whistle-Stop Tour, residents talked about the tough times they've faced.

"Rome doesn't have anything for jobs," one unemployed woman told Robin Roberts. "If you want a good job, you need to be able to travel outside of Rome."

Niagara Falls, which spans both America and Canada, provides a telling example of the region's economic troubles.

Walk down what was once the main shopping thoroughfare on the New York side, and you'll see boarded-up storefronts and deserted sidewalks.

Across the waterfalls in Canada, though, shine the bright lights of casinos, hotels and restaurants.

The average household income in Niagara Falls was $26,800 in 1999, according to the most recent census data available, well below the average U.S. income of about $43,400 that same year. The average annual household income on the Canadian side of the border in 2001 was $47,800.

While the average home on the New York side of the falls is about $61,000; in Canada, the average home is worth more than $100,000.

"I can't figure out why our government doesn't see what's going on there to bring it all over here -- and the tourism," a woman watching her son's hockey game told Diane Sawyer.

Perhaps most disturbing to many in New York is the number of young people leaving because they can't find jobs. Between 1990 and 2007, the population fell by 10,000 people, according to the U.S. Census.

"We have great universities, great state colleges. To educate your child here is wonderful, but to go beyond that they have to relocate," another mom said.