That happens because the incentives and supply chain machinery allow it to. Externalities are never priced in regardless of where things are made. Price in externalities, regardless of origin, and things would change. That's just one example of a potential solution, and one that many are trying to do with carbon taxes/credits.
That seems to be the fatal trap we're in: government can compensate for the fact that capitalism is effectively unable to price in externalities, but the big winners from capitalism have the resources to simultaneously lobby government for less regulation and persuade voters that government is evil.
I don’t see any other method of economy / government solving either. USSR hid all kinds of dangers (including Chernobyl), China barely is reacting to climate change and notoriously has sacrificed its people for economic gain, etc.
The value structures of how much to care for any one person are different independent of government. Individual versus collective shows itself in both democratic capitalist governments on both sides, and now with market reforms so does communism.