"Self-defeat" seems like the right term

Once upon a time in America, prosperous rural towns helped lead the revolution in public education and local public goods such as libraries. As the story goes, the United States became a leader in economic growth by way of human capital accumulation because political power was democratic and decentralized; many communities viewed investments in local public goods as a way they could collectively better themselves, and they had the authority and will to collect the necessary tax revenue and make it happen. The eclipse of this collective optimism by selfish pessimism is a tragedy being played out in our country's heartland, as Monica Potts reports in this sad but excellent piece. When and how did this reversal of outlook come about? Then again, as a friend put it, the news is "hopeful too, because as [the] author points out, the number of people with these 'lifestyles' is dwindling...."