I recently came across a fascinating theory that traces the crisis of American democracy to the fact that everyday people used to participate in local governance, but they don't anymore (I forget why... increasing urbanization? The nationalization of politics?) The distance from governance leads to distrust in government (and institutions in general).
Unfortunately I can't remember the source. If anyone can point me to it, I'd be eternally grateful.
Edit: got it! See thread for book + paper.