One could call liberal democracy a utopia, when compared to feudalism that preceded it. There will always be problems to solve, what the OP is describing is not

One could call liberal democracy a utopia, when compared to feudalism that preceded it. There will always be problems to solve, what the OP is describing is not the absence of problems, but the evolution of social and economic relations in the same way capitalism was the evolution of social and economic relations from feudalism.