The problems at LFC started well before last summer. I am not sure who to blame (for not spending money), is it FSG not giving any money available, is it the recruiting team arrogance that have backed down on investing or (IMO) most likely on Klopp that decided that his team was sufficient enough. But one thing is clear in 2021 they needed to invest significantly more and sell some players too (keita and/or Ox)
The problem started the summer when first Wijnaldum left but also having injury prones players. They needed a revamp there a big shot to the arm after the catastrophic season in which by miracle they made it to the CL. They should have invested massively in midfield and defense. Instead they only got Konate. This was incredibly stupid to rely on injury prone players (Ox, Keita, Matip) and only signing one player and not starting refreashing the midfield. Yes they challenged on all fronts that year but the warts was showing already. They got Diaz in the winter which was a huge lift but not enough. Then last summer, they doubled down on their stupidity by again not investing or refreashing the midfield and the defense and they collapsed.
This is quite shocking that some portion of the fans are just realising it now.
And it's not about competing with Man City or Man United with their astronomic funds. It's just pure idiocy from the owner to the management to continue believing that Klopp can perform miracles with no depth.