In socialism, private property is anathema, and equal distribution of income the first consideration. In capitalism, private property is cardinal, and distribution left to ensue from the play of free contract and selfish interest on that basis, no matter what anomalies it may present.
The story of Detroit's bankruptcy was simple enough: Allow capitalism to grow the city, campaign against income inequality, tax the job creators until they flee, increase government spending in order to boost employment, promise generous pension plans to keep people voting for failure. Rinse, wash and repeat.
We need business to understand its social responsibility, that the main task and objective for a business is not to generate extra income and to become rich and transfer the money abroad, but to look and evaluate what a businessman has done for the country, for the people, on whose account he or she has become so rich.