The system has worked since the first cavemen figured out how to club each other, and seems to be going strong. Tribalism is so ingrained in us that I doubt we'll ever be rid of it. People just aren't happy without having someone to hate. Jews, Blacks, Irish, any one of the Asian races, some group, somewhere along the way, has singled them out as being inferior, or undesirable. Social position is another good reason to hate.
Bottom line is that people love to hate each other, and we're really good at manufacturing reasons to do it.