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The Democrats are in bad shape because they have no agenda. The only card they have is to critique Republican policy.
Most Americans don't want the country to be like LA, San Francisco or St. Louis.
Democrats vastly underestimate how socially and fiscally conservative this country outside of their little coastal elite bubbles.
Most of the country cares about moral decline and jobs. The Democrats care about social issues that divide the country.
Plus a majority of places they run are complete failures except for a small elite. Even well-off places that they run tend to have lots of issues.
Democrats are professionals at creating a huge income disparity like they have in cities like LA and San Francisco and then saying that the to solve the crisis that they can just have a big tax increase that goes to unionized workers.
The Democrats are the party of the rich coastal elites, multi-generational welfare families and illegal immigrants.