"It pushes them away from embracing their true identity, and self-actualization"
Not only that, but it also prevents them from seeing others as human. Collectivism is the most effective method for dehumanizing the individual.
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Exactly, collectivism hinders a human from finding their true identity as an individual. When an individual identifies with a race or tribe above themselves they usually dehumanize anyone that is not part of their collective or that is not benefiting their collective identity.