I once read a plan for the revitalising of Detroit rather than the demolition. The plan involved turning Detroit into a free trade zone, along the lines of Hong Kong. There would be a low flat tax rate of 15% on company and personal earnings, no import/export duties, no welfare programs or government assistance, including being exempt from all Federal taxes, interventions and benefits. Basically set up a border around the city and let people do whatever they want. The idea was that within 10 years, it would again be a growing and dynamic economy as people would be attracted to the region to escape growing Federal intervention.

While I don't think the idea would ever fly, and I'm not sure it could work, it's definitely an idea to make you think - perhaps the answer is less intervention, not more.