A neutral wire can pose a risk if it is earthed and touched while the circuit is energized, potentially leading to electric shock. In the U.S., the neutral is typically grounded at the transformer and service entrance, which can create hazardous conditions if not properly managed. The discussion highlights that while the body of a car can act as a ground, it is generally safe due to the low voltage of automotive systems and the insulating properties of tires. However, confusion arises regarding the role of grounding in preventing short circuits, as grounding primarily protects against static electricity rather than current flow during a fault. Proper connection order is crucial, as connecting neutral to ground while a device is energized can be dangerous.