Not every phenomenon is only cause on one side and only consequence on the other side, multiplexed feedback loops are often more appropriate models.

More poverty, more fears, more will to be perceived as an unbeatable threat no one dare to attack, more actual aggression fueled by us vs them mentality, more tragedies. Rinse and repeat.

Also having bad outcomes of a social structure being geographically condensed doesn’t mean they are decoupled from causal inter-dependencies with the places where all the happy shiny outcomes is jealously isolated.