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This phenomenon occurs across human culture: As our social organization has morphed from tight-knit groups to loose, technology-driven networks, we are supporting each other more and competing less. Sociologist Barry Wellman calls this networked individualism: our newfound ability to work together without losing sight of our internal goals. Accordingly, the coliving movement seeks out exceptional people, asking them not to give themselves up to a single cause, but to support each other’s exceptionality. This may be the key to a new definition of “home,” one which provides comfort and friends along with inspiration and innovation. As our social and professional landscapes shift, our concept of home is shifting too. By rebuilding their homes on a foundation of creative collaboration, coliving participants may next redefine the world by the same terms.

What were the American people to do in this vast new war? In his address to Congress on September 20, 2001—the speech that gave his most eloquent account of the meaning of September 11th—the President told Americans to live their lives, hug their children, uphold their values, participate in the economy, and pray for the victims. These quiet continuities were supposed to be reassuring, but instead they revealed the unreality that lay beneath his call to arms. Wasn’t there anything else? Should Americans enlist in the armed forces, join the foreign service, pay more taxes, do volunteer work, study foreign languages, travel to Muslim countries? No—just go on using their credit cards. Bush’s Presidency would emulate Woodrow Wilson’s and Warren G. Harding’s simultaneously. Never was the mismatch between the idea of the war and the war itself more apparent. Everything had changed, Bush announced, but not to worry—nothing would change.

At the time of the attacks, few educated Americans born after 1950 had any direct experience of war or persecution or cataclysmic failure. After 9/11, this gap in the résumés of intellectuals gave them both a sense of inadequacy—an outbreak of envy for the Greatest Generation—and a compensatory tendency to inflate the drama of the war on terror and their own role in it. This took place at a level of abstraction that is made possible when the fighting is eight thousand miles away. As a result, a number of the country’s best minds mistook the post-September 11th era for a new American golden age.

After the attacks, Americans asked, “Why do they hate us?” This turned out to be the wrong line of inquiry. The most pressing questions were about us, not them: our leaders, our institutions, our ability to act as a cohesive nation and make rational decisions, our power to take action abroad in a way that would not be a self-defeating waste. Starting with the intelligence failures that did not foresee the attacks, every major American institution flunked the test of the September 11th decade. The media got the W.M.D.s wrong. The military failed to plan for chaos in postwar Iraq. Congress neglected its oversight duties. The political system produced no statesmen. C.E.O.s and financiers couldn’t see past short-term profits. The Bush Administration had one major success: it succeeded in staving off another terrorist attack in America. It botched almost everything else.

After 9/11, life in America changed in a few palpable ways: you needed I.D. to get into an office building, and boarding an airplane became an ordeal. But all the structural trends stayed on course: the stock market, after a setback, maintained its relentless upward climb; inequality soared, as Wall Street fortunes reached unimaginable new heights, while average wages began to decline; just about every remaining textile job in Surry County disappeared; Americans sank deeper into debt and depended more on their houses for wealth; the iMac progressed to the iPad; CBS News continued its descent into irrelevance and Fox News its corrosive rise, while newspapers kept cutting back or closing shop. The political division of America into red and blue hardened into the mutually hostile and unintelligible universes in which we live today. Bush, already viewed as illegitimate by many Democrats, became one of the most hated Presidents in American history; the writer Nicholson Baker even published a novella about the merits of assassinating him. Meanwhile, the Republican Party fell completely under the control of its most extreme elements, and “traitor” became a routine term for its opponents. For all the talk of national unity and a new sense of purpose, the terror attacks did nothing to bring together the country. America after September 11th was like a couch potato who survives a heart attack, vows to start a strict regimen of diet and exercise, and after a few weeks still finds himself camped out in the living room.

The Bush Administration collapsed in the late summer of 2005—not in Falluja or Kandahar but in the submerged neighborhoods of New Orleans. The response to Hurricane Katrina gave Americans such a devastating picture of official failure that it suggested something fatally wrong with an entire approach to governing. Iraq, of course, had provided evidence of high-level arrogance, incompetence, and neglect for two years, and Afghanistan for even longer than that, but, because these places were far away and American troops were risking their lives to serve the nation, the public wasn’t ready to withdraw its support. When the footage came out of the Gulf Coast—when, for the second time in four years, a great American city looked like Kabul or Kinshasa—it was Iraq in fast motion, and right around the corner. Government at all levels, but especially in Washington, had failed to plan for the worst outcome, even when the entire country saw it coming. An Administration staffed by cronies neglected to take care of citizens for whom it had the greatest responsibility. Katrina made brutally clear that the White House had substituted passive, self-congratulatory bravado for serious organized effort. Like Iraq, New Orleans represented a failure of individual leaders, but also of national institutions.

After Katrina, support for the Iraq war evaporated. Having been asked for very little ever since September 11th, other than to take the Administration’s way on faith, Americans had little trouble reframing their allegiances. This was the price of a foreign policy based on assertion rather than on persuasion. The war on terror had been a kind of confidence game: it depended on a belief in American virtue and ability that had proved unwarranted. With the exception of his advocacy of the surge, in 2007, Bush became an increasingly irrelevant figure, and his foreign policy crawled away from grand projects for “world order.” When Vice-President Cheney called for new wars with Iran and Syria, there were no takers.

In the years after Katrina, Americans began to see that the same unstable combination of hoopla and neglect that had characterized the war on terror also characterized the decade’s supposed economic boom. While the media were riveted by the spectacle of celebrity wealth, large areas of the country were—like Surry County—left to rot. The boom had been built on sand: housing speculation, overvalued stocks, reckless deregulation, irresponsible deficits. When the foundation started to crumble with the first wave of mortgage defaults, in 2007, the scale of the destruction became the latest of the decade’s surprises. Hardly anyone foresaw how far the economy would fall; hardly anyone imagined how many people it would take on the way down. Even the economic advisers of the next Administration badly misjudged the crisis. The trillions of dollars spent and, often, misspent on wars and domestic bureaucracies were no longer available to fill the hole left by the implosion of the private economy. Reborn champions of austerity pointed to the deficits in order to make the case that the country couldn’t afford to spend its way back to health. And, like the attacks that were supposed to change everything, the recession—which was given the epithet “Great” and was constantly compared with the Depression of the nineteen-thirties—inspired very little change in economic policy. Without effective leadership, the country blindly reverted to the status quo ante, with the same few people making a lot of money, if a little less than before, and the same people doing badly, if a little worse.

This malignant persistence since September 11th is the biggest surprise of all. In previous decades, sneak attacks, stock-market crashes, and other great crises became hinges on which American history swung in dramatically new directions. But events on the same scale, or nearly so, no longer seem to have that power; moneyed interests may have become too entrenched, élites too self-seeking, institutions too feeble, and the public too polarized and passive for the country to be shocked into fundamental change.