I liken individualism to cancerous cells to society, some are malignant and some are benign. If you have too much of the former, you embark on a social evolutionary force of society that may not be sustainable. Especially malignant forces that consumes social resources and then breaks foundational bonds between individuals, acting as a divisive force in society. I would also include those who are extremely wealthy and successful individuals here, since they contribute to the income gap and their individual morals act as tribal magnets creating a divisive force.
The benign goes with the flow or fails to seek enough influence or creates enough havoc to be a social impact.
Like malignant cells group together and prosper or grow to form tribes (tumors).
My current bet (not sure), is that a society that concentrates on individualism will ultimately result in a bilateral class structure where one class dominates over the other. The stability and growth potential will then depend on the attenuation of the tension between the classes. Done correctly, the subjugated class may not feel it. Done incorrectly results in a revolution.
All forms of government must face this reality of individualism. The difference is the way in which they manage it. The big experiment of the West is they let the tumors grow. This experiment has reached the typical dynastic period of 200–300 years, so it will be interesting to see if it is still sustainable or not. In the past, there has been self imposed chemotherapies to the likes of wars that perform resets on the malignant cells, so to create more room for individualism to flourish.