I have no solutions, I'm not even convinced that my statement really encapsulates the problem in a real way. Humans are very difficult. I'm reminded of that speech made by Hugo Weaving's character in The Matrix, about how the original matrix had been very utopian, with everyone living happy and harmonious lives, and the subjects rejected the illusion on a deep enough level to break it. I don't think one should look to Hollywood for good philosophical thinking, but I think he was onto something there.
If I could make one law get passed, I would outlaw algorithms on social media feeds (edit: and search engine results). Let them collect the data, let them target ads. I don't think those things are inherently harmful, or at least, no moreso than the old ads and surveillance.
But the seizing and algorithmic manipulation of the feeds, with the accompanying incentive that the whole thing fails if it doesn't turn a profit, is far more toxic than the gatekeeping of the old media emperors. The great promise of the internet in the 90s was that consumers of internet media would have complete control over our feeds, and get only the things we want and demand.
We have received the exact opposite, because people with money want to put their money to work, rather than work.