It's not Liberal Democracy that is the problem but a society where all of the slack has been optimized out, every extraction maximized, every infraction forever a scarlet letter on an individual, zero stability but constant crisis inflicted on individuals. There is no room in modern day America for people in the margins. Society needs to make a place for them and a path out of constant crisis, or the homeless problem will continue to grow.

Another hidden issue in the USA is many households are dependent on contributing income from a retired/disabled/working past retirement age elderly parent/family member. Those people are going to start passing in mass, and a lot of households will become even less resilient.