This is quite dense to unpack but it does remind me of a main theme from those Adam Curtis documentaries: That overarching master plans, especially social ones, are overconfident by nature and generally lead to large unexpected consequences — many of which are catastrophically bad (ahem Nazism).

My napkin explanation is that governments and organizations (and so on) 'bite off more than they can chew' by implementing theories into policies before really understanding them. They see "this will optimize X (prosperity, civil rights, public health)" without fully understanding the larger system.

However, that's just about the implementation details. In the end, it all comes down to what a society wants and its values. The hard part isn't the intellectualism and engineering of how to 'fix' a society, it's deciding what a 'fixed' society looks like, short term and long term. I think we as technical people need to be reminded often that the social world isn't a machine with an easily identifiable telos.