Whenever people see old systems still in production (say things that are over 30 years old) the assumption is that management refused to fund the replacement. But if you look at replacement projects so many of them are such dismal failures that's management's reluctance to engage in fixing stuff is understandable.
From the outside, decline always looks like a choice, because the exact form the decline takes was chosen. The issue is that all the choices are bad.
In my work experience I've realized everybody fears honesty in their organization be it big or small.
Customers can't admit the project is failing, so it churns on. Workers/developers want to keep their job and either burn out or adapt and avoid talking about obvious deficits. Management is preoccupied with softening words and avoiding decisions because they lack knowledge of the problem or process.
Additionally there has been a growing pipeline of people that switch directly from university where they've been told to only manage other people and not care about the subject to positions of power where they are helpless and can't admit it.
Even in university, working for the administration I've watched people self congratulation on doing design thinking seminars every other week and working on preserving their job instead of doing useful things while the money for teaching assistants or technical personnel is not there.
I've seen that so often that I think it's almost universal. The result is mediocre broken stuff where everyone pretends everything is fine. Everyone wants to manage, nobody wants to do the work or god forbid improve processes and solve real problems.
I've got some serious ADHD symptoms and as a sysadmin when you fail to deliver it's pretty obvious and I messed up big time more than once and it was always sweet talked, excused, bullshitted away from higher ups.
Something is really off and everyone is telling similar stories about broken processes.
Feels like a collective passivity that captures everything and nobody is willing to admit that something doesn't work. And a huge missallocation of resources.
Not sure how it used to be but I'm pessimistic how this will end.
The traditional term for this is cobra effect. [1] When the Brits were occupying India they wanted to reduce the cobra population, so they simply created a bounty on cobra heads. Sounds reasonable, but you need to have foresight to think about what comes next. This now created a major incentive for entrepreneurial Indians to start mass breeding cobras to then turn in their heads. After this was discovered, the bounty program was canceled, and the now surging cobra farm industry mostly just let their cobras go wild.
I think the fundamental problem is that things just don't work so well at scale, after a point. This is made even worse by the fact that things work really well at scale before they start to break down. So we need a large economy that remains relatively decentralized. But that's not so easy, because the easiest way to make more money is to just start assimilating other companies/competitors with your excess revenue. Anti-trust is the knee jerk answer but even there, are we even going to pretend there's a single person alive who e.g. Google (or any other mega corp) doesn't have the resources to 'sway'?