We say we are a nation of laws and that as a society we respect & rely on the rule of law
The reason we have insufficient systems thinking for the kind of problem you present is that we have the wrong people making rules and regulations. Our system of government was designed to have an elected Congress make our rules. Their job is to represent us and to provide for the general welfare, and to do so with a sober mindset without trampling on our individual liberty. They are accountable to the people through the election process.
Over the course of many decades Congress has abdicated its responsibility by turning over the regulatory responsibility to the executive branch (and the judiciary, but let’s exclude that for now). The resulting bureaucracies have only one goal, self-preservation. The power of the bureaucracy to create more regulations is largely unchecked by congress. In our lifetime these bureaucracies have also been given the authority and autonomy to enforce their regulations with their own armed police force. So now we have unchecked bureaucracies making new regulations and running around with guns to enforce them with no concern for individual liberty.
The bureaucracies are largely unaccountable and are now so large and self sufficient that they are in effect another branch of government. Instead of being managed by Congress or the executive branch, they see themselves as the final authority. They have become arrogant and scoff at the other branches of government who can no longer contain them.
From my perspective this is the biggest government issue of our time
I have witnessed lawsuits where there has been a parade of city and state officials testify on the laws & regulations on the books to protect citizens. Every city & State official has carefully explained with sober righteousness that those rules apply to us but not to them.
It’s the bureaucracies we need to fear