Connection to capitalism seems dubious to me as others have said. I would suspect it is more likely a combination of the Internet / social media being a poor replacement for connection and disillusion with institutions like the church, community organizations, and civic groups.

We have become skeptical of institutions including private ones and it seems to me that most people have checked out. They don't know their neighbors a and no long feel the need to build community.

Another factor is individualistic culture. This is common in the west and replaced the more honor based cultures of the past. One would rarely leave your home town in the past. You would live near family. Today it is very common to move cross country and lose the ties to your roots. This makes it harder to have meaningful relationships.

One can argue that capitalism makes this easier but it is not a requirement. Wealth and prosperity make it possible really. Technology is likely the key issue for the you get but also I'd as the breaking down of the family with marriage being less common and more weak.

Capitalism is a popular whipping boy but if we stop and think about the alternatives it's just a scape goat to avoid the decay in ourselves and communities.