Detroit was once a productive city, thanks to private enterprise. Decades of government looting and extortion (the latter euphemistically called regulation) have reduced the metropolis to its present state of decay and literal, physical collapse:
Notable among the ruins are residential neighborhoods built with "model city" government subsidies (i.e., money stolen from the earnings of the productive). With no actual wealth creation and profit to sustain these edifices, they've succumbed to entropy. They're the American equivalent of abandoned Soviet structures and factory towns, which were also erected by government edict with no regard for economic reality.
In essence, modern government regulation (as opposed to beneficial laws that protect persons and property from fraud and violence) is, at best, the forcing of non-elite people to act out the fantasies of those who exercise political power over them. In most cases it's just a cynical pretext for organized robbery.