So how did this turbulent time in the industry affect
the city of Bethlehem? The tens of thousands of laid-off workers
came to rely more on local social service agencies, which were now in a
double bind, since the donations from the Steel that had funded them were
cut off. These lay-offs kept Northampton County’s unemployment rate
in double digits, while neighboring Lehigh County was only 8.8%.
Not only were ex-workers affected, but so were their families. The
Valley Youth House’s runaway shelter and counseling centers helped about
800 children in 1981; by the mid-eighties, they helped over 2,000 a year.
(A01) The United Way collected over half of its $2.58 million from
the Steel and its employees in 1980. In 1984, the Steel was able
to give less than a third of the campaign goal. (A01) Real estate
also suffered greatly from the downfall of Bethlehem Steel. An exodus
of steel executives from the company-dominated Saucon Valley lowered the
prices on its notable homes. City officials believe that if the Steel
had stayed strong, a modern office building on Main Street would stand
on what is now a gravel parking lot, and The Marketplace, a now-deserted
downtown mall, would be alive and prospering with shoppers. (A01)
Yet speculating on what could have been and dwelling on what had been was
pointless, for now the city had to decide how to rebuild itself after its
Steel supports collapsed.