Liberals live in a fantasy world where everything exists the way they think they should be, NOT the way things really are. In other words they’re quite delusional.
Which is why they continue to be liberals, even though everything they do, backfires or fails.
I could call it denial, but it's possibly even worse than that. I don't think they even notice when they fail. In the rare instance when they do notice one of their failures, it's because 'we didn't spend enough money to fix it' (see: Paul Krugman).