Your political system sucks...
That is the true heart of your problems.
It is compromised by lobby groups, its is distorted by power groups seeking their own agendas.
For example the oil companies making iraq policy, logging the forests after pressure from logging orgs, tax cuts for big businesses etc etc etc, I am
sure that many people here can point to places where the democatic process has been railroaded by privite agendas
You 2 party system based on spending phenomenal amounts of money for electionairing, thus cutting out honest politicians who don't have the backing
or big business.
Your seeming lack of any organized vocal opposition keeping the government honest.
There are other democtatic political systems out there that are better to use, your system is only a poor version.
OK thats one problem, and I think the primary one.
Deriving from that are many minor issues where lobby groups have twisted society to provide profit for themselves. Things like the militaristic nature
of your society, the glorification of violence as an end to all problems.
I'll add some more later
There are still plenty to cover....