The entire leadership of Judah has become corrupt. They would have seemed quite respectable from the outside: ruling, judging, performing religious duties.
The give away is the grinding poverty of the people, which is jarringly described in cannabalistic terms: they are stripping the flesh off the people, grinding their bones and feeding off them.
The roles of prophet, priest and king which Jesus would take on himself are being done by people comfortable with leadership serving themselves, not being servants of the people or God. They pray to God to keep them from harm, happy to lean on him for their own well being while exploiting their own role mercilessly to their own advantage.
Micah declares himself a true prophet, full of power justice and might from the spirit. Because of them the whole society will crumble and be destroyed.
God has an equivocal relationship with earthly power. St Paul and Jesus make it clear that even quite corrupt and oppressive governments, such as the Roman, can be vehicles of god’s blessing which should be accepted by believers. It’s probably no accident that the Roman empire with its pax Romana … Roman peace and straight roads was a conducive environment for the early spread of the gospel.
God needs Judah to stay distinct, the chosen people. They keep unchosing themselves by losing their core though the nature of sin.
Sometimes it is his purpose that kingdoms should rise, and sometimes to fall. Neither event should shake or faith in him.