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I don't think your point, which is correct, and mine, are mutually exclusive. It's both a distraction, and class warfare.
Class warfare is the basis of all of this though make no mistake. Some of the rich want to overthrow representative government, and somehow think the dictators will stay on their side and make a prosperous society.
They are mistaken as you allude to with the fascism.
But as to hatred losing to self interest, I think recent history, the last 50 years, has putten nails in the coffin of that argument and then dumped it in the marianas trench. It could be that way, but only with real leadership, which we don't have by design.
I agree with all that, and it is certainly both a distraction and class warfare, no doubt
My only point of contention is that it's not a step in a process of class warfare, it is a tool of class warfare
But after you clarified I think that might just be a matter of phrasing
Also, while the system is set up against us, there's reason for hope. Progressives are coming out of the woodwork and snatching up elections, especially locally. Things could change for the better
But even aside from that - I don't mean self interest is going to magically win the day. What I mean is that personal suffering causes unrest
You can form a coalition of hatred short term, we've seen that people will even hang onto that while the leapords are actively eating their face
The hatred might not go away, but the unity goes out the window the second people can't get their favorite brand of Oreo (or lose their livelihoods)