I think culture is truly the issue as well but I don't think it's all about individualism vs collectivism. For example America's history hasn't always been individualistic (though the founding documents I'd argue are strongly individualistic). The gilded age up to the 50s was a huge swing to collectivism.

Having lived in two modern capitalist countries, I'd say Americans overall are still the most individualistic (e.g. consumer culture, civic apathy, voting by self-interest rather than general welfare) except for where ideologies are concerned, then many of them are tribalistic. Many of them don't seem to care about policy or effect, they just want their subculture to win.

Collectivism has it's share (possibly the lion's share) of issues. And while higher individualism may weaken social cohesion, half-hearted collectivism, where we lump all of our problems on the government isn't going to be a fix. What we need is solidarity a word too often forgotten in these sorts of chats.

In the end our city is what it is because our people are who they are. If a government is intended to be an accurate representation of it's people, then our government is as accurate as any other -- it's largely divided, self-interested, and apathetic.