I think the last step of understanding the issue is difficult because it requires admitting that their current belief and way of life is not optimal for themselves.

Everyone or almost everyone thinks highly of their own decision skills or at least that they do their best. They believe they can make good choices and that they can either outsmart or work harder than others. The truth is that, maybe they can, but there's very little choice in how it's rewarded. The believable lie is that work is compensated fairly, and once someone has put half a life into this lie, it's difficult and soul crushing to admit that it's plain wrong. It may cause frustration and anger, which doesn't solve it. A solution isn't evident or maybe it seems out of reach, causing more frustration, causing more anger. It's a lot easier to take out anger on people than fighting a system. And especially in groups, it's easier to point at smaller minority groups, because their own group is stronger or have more votes, so it's actually doable. They get a relief for the frustration by believing that they're doing something about their issue. It won't work though. It's similar to being bullied in school and then thinking it will help to take it out on the younger kids, instead of confronting the older bully.

It takes courage to fight upwards. Having been through unionisation efforts I can assure you that people living from one paycheck to the next are absolutely not courageous.

In regards to news, it's also a lot easier to simply choose the news that keeps presenting their existing belief.

Yep, if you listen to guys like Steve Bannon talk, they sound like Marxists in their critiques of the system, up until the point where they have to identify the culprit. Instead of capitalists, they'll go and blame liberal elites, immigrants, etc.