"Reaching out" and "being compassionate" won't work, because it does nothing to solve the underlying problem (poverty and exclusion). In fact, it just comes off as condescending (which it is). "Getting tough on crime" only accelerates the decline because now you're declaring war on the underclass. Now they REALLY have nothing to lose, and are fighting for survival.
And so you watch in horror as your once beautiful city goes into decline, feeling powerless to do anything. The left pushes for more leniency, the right pushes for more punishment, and the whole city goes to shit while everyone ignores the elephant in the room.