Not only is it reductive, but it’s also a rather lacking analysis in terms of richness.
As you say, territorialism and social hierarchies is common.
Animals don’t value each other on the basis of their bank accounts, and neither did humans.
Money and wealth are fairly modern concepts. So are nations, but the point I’m trying to make is that we divided land into territories long before wealth had anything to do about it.
And while having territories definitely cause some issues it also creates a common cause. If it’s your household, your neighborhood, your municipality, your county, your nation, or your continent.
But as always, the further close to home the more engaged we are. You are more invested in keeping your house clean than the street outside of it.
Democracy works the same, and it works better on lower levels. On national levels it seems to work less and less.