New Orleans has long been known as one of America's hardest luck cities, struggling over the years with poverty, crime, corruption and tragic disaster. But the city's darkest days have sparked a surprising new entrepreneurial spirit.

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Like other black Americans — considered the political base for President Obama — members of the close-knit Gaither-James family say racism is holding the nation back.

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Workers who helped reconstruct New Orleans after Katrina are putting down roots in the city. The construction jobs aren't as easy to get as they once were, and many immigrants report that employers sometimes don't pay them for their work.

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East Millinocket, Maine, used to be a booming paper mill town that offered residents what was basically a guaranteed ticket into the middle class. But today young people are scrambling to find a new path. "It's a little scary because it's going to be tough," says high school senior Jared Lyons.

The Great Recession hit the industrial Midwest especially hard in recent years. Now, though, local leaders in at least one small Illinois city believe the worst is finally behind them. But they need to diversify — and attract new residents.

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Berea College's 1,600 students come from low-income households, and sophomore Emily Nugent says they "know about the challenges Americans are facing." Inspired by their own diverse backgrounds, they're taking up causes like standing with the newly poor, helping immigrants or embracing their heritage.

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The dismal economy has taken a toll on nonprofits. Donations are down. One nonprofit, Free Arts of Arizona, which uses art as therapy for the children of abused women, has had to make layoffs and budget cuts.

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John Timmons recently closed ear X-tacy, a record store he'd owned for 26 years. "People have priorities, and music is just not a top priority right now. That's what's really taken its toll on us," he says. Now, Timmons has to figure out what to do with the rest of his life.

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Alice Eastman, a single mother living in Wheaton, Ill., tried to make ends meet on unemployment while she hunted for a job in her field after being laid off in 2010. After a long, fruitless search, Eastman, a once highly paid professional, took a minimum-wage job at Target.

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Billings, Mont., has its share of natural resources. But residents attribute their ability to weather the economic storm to a diversification of services beyond oil — like agriculture, financial services and health care. "It's just a great day here in Billings," says a leader of a new library project.

(Image credit: Richard Gonzales)