Contemplating the suffering which is unbearable to us, and is unbearable to others, too, can produce awake mind, which arises from the compassion that wishes to free all living beings from suffering.
Can you imagine if you really let it in that you are not a problem to be solved in any way? Imagine you knew that anything that would tell you otherwise is just a movement of thought in the mind that says "Whatever is, isn't the way it is supposed to be." So the biggest act of compassion starts within. And when the self is no longer seen as a problem, this is called "the peace that passes all understanding."
When a person is in a miserable situation, then, yes, it is difficult to develop genuine compassion toward others. That's why I find it difficult to say to poor people, "Please have compassion toward millionaires." That's not easy.
When faith is completely replaced by creed, worship by discipline, love by habit; when the crisis of today is ignored because of the splendors of the past; when faith becomes an heirloom rather than a living fountain; when religion speaks only in the name of authority rather than with the voice of compassion, its message becomes meaningless.
When something needs to be done in the world to rectify the wrongs, if one is really concerned with benefiting others, one needs to be engaged, involved. This is action out of compassion.