Unemployment clearly leads to degradation, both of cities (Youngstown) and of individuals.
The question I think we're debating is whether the flow of causality goes unemployment->poverty->social degradation (this is your case, I think) or whether unemployment leads to social degradation more directly, even among people who don't currently need money (so, removing the variable of poverty) because it's a terrible blow to esteem, purpose, and community. I think there is a lot of evidence for this claim; see the section Paradox of Leisure.
The question I think we're debating is whether the flow of causality goes unemployment->poverty->social degradation (this is your case, I think) or whether unemployment leads to social degradation more directly, even among people who don't currently need money (so, removing the variable of poverty) because it's a terrible blow to esteem, purpose, and community. I think there is a lot of evidence for this claim; see the section Paradox of Leisure.