There are probably better examples to be found.
The "competence" comes at a price - extremely high levels of inequality, utter lack of civil liberties, a one-party authoritarian regime and so forth.
Notice how the list of negatives leaves out the 800 pound gorilla in the room? High levels of debt taken on to finance their, uh, ‘competence’.
People praising their ‘competence’ seem to ignore it. And the people complaining seem to ignore it. We’re beset on both sides of our political divide by fiscal apathy.
If places like Carmel fail, I’m certain their failure will have much more to do with bad debt than homelessness.
There are a couple of dimensions to consider. It's like how in a control system you can get better performance by reducing the level of damping, but at the expense of reduced stability or oscillation. It's possible to have too much damping, but stability is crucial too.