If there is a systemic malfunction, it's that the American people have abandoned much of their role in democracy, trusting their interests to capitalism: "What's good for business is good for me." That isn't democracy breaking down; it's just failure to use democracy.
I agree. But to be fair, the Occupy movement did try to raise awareness of how the neoliberal scheme has gradually taken democracy out of the hands of the populace and made the government an ATM for high finance wheeler-dealers. Crowdsourcing social change didn't work, but it was a good reminder of how broken our system still is.