When houses return to castles,

Grouping together becomes more and more illegal,

When the wealth becomes illegal,

The breaking point will be technology. The Demon the government cannot stop will burn to the ground.

I'm not paranoid, but people are so blissfully unaware how dangerous it is to walk outside when a country sized gang can grab or kill you without reason.

So long as there's food and water people really don't care what the government does.