They do, actually. The book actually does cover some of these aspects, without being overly doom & gloom. I haven't read the authors' other books around that time - The Great Reckoning & Blood In the Streets, but I assume that detail is saved for those.

The Sovereign Individual says that nation states won't have enough / any income to be able to pay for these services & infrastructure. That places that did not participate in the Industrial Revolution will be in an advantaged position, of being able to offer far more competitive and friendly jurisdictions for business and for the individual. To be able to build-out more efficient infrastructure.

They authors mentioned that there will be a vacuum from the erosion of infrastructure no longer being able to be maintained, and that this will lead to intense volatility & spiteful behaviour in society & in particular in cities. Starting with a 'fiscal crisis', continuing with infighting and leading to organised crime filling the void that Governments leave behind.