How foolishly we cling to the belief that the state, for instance, exists to protect our lives, liberty, and property interests, even as it continues to slaughter millions of people, restrain their liberties, and despoils their wealth. The life system, itself, constantly pushes the fallacy of pyramidal thinking into our unconscious and often conscious mind. As we look around our communities and the rest of the world and discover how much better decentralized systems perform in providing what political agencies only promise, faith in the pyramid collapses. Not willing to allow its violence-based interests to decompose due to a change in human consciousness, the state—along with the corporate interests that have long benefited as politically-created parasites—desperately reacts to shore up its crumbling foundations.

Firms with established market positions wanted to reduce the impact of such competition and employed voluntary methods (such as mergers, pooling, trade association ‘codes of ethics,’ and other agreements) in efforts to stabilize competitive relationships. When such voluntary means failed due to lack of effective enforcement, influential corporate leaders, having found a condition of unrestrained competition and decision-making unacceptable to their interests, helped promote the enactment of legal restraints upon trade practices.

Businessmen came to embrace the industrial theology of ‘responsibility,’ and learned a new set of cartelizing catechisms. The campaign to reform trade practices and promote ‘fair’ competition had little, if anything, to do with business ethics, efficiency, ‘justice,’ ‘fairness,’ the elimination of waste, or any of the other rationalizations employed on behalf of ‘industrial self-rule.’ It was, instead, part of a strategy designed to secure the political supervision indispensable to the group domination of industry members. Only in the structuring of economic behavior, it came to be thought, could the status quo be maintained against the inconstancies and uncertainties of the marketplace.

As the creators of sophisticated technologies, we have made ourselves increasingly machine-like; robotic servants of institutional systems we have been conditioned to revere, whose purposes we neither understand nor control, and of which we are afraid to ask questions. Our corporate-state world plunders, enslaves, controls and destroys us, all in the name of advancing our liberty and material well-being. Most of us are dominated by an unfocused fear of uncertainty, a longing for the security of emptiness.

If, on one occasion, a police officer brutalizes a harmless individual, does that mean that a police-state has arisen? No, but intelligent minds should recognize that such totalitarian consequences are implicit in such an act, and should respond accordingly. I am reminded of that powerful scene at the end of the movie, Judgment at Nuremberg. Judge Haywood (played by Spencer Tracy) has been called to the jail cell of the Nazi judge (played by Burt Lancaster) who has just been given a life sentence for his crimes. The convicted judge tells Judge Haywood: ‘Those people, those millions of people. . . I never knew it would come to that.’ Judge Haywood replies: ‘it ‘came to that’ the first time you sentenced a man to death you knew to be innocent.’

The mainstream media and high-ranking government officials feigned righteous indignation over city officials in Bell, California, who paid themselves gargantuan salaries—one as high as $800,000 per year, and with retirement pay nearing $1,000,000 annually. What is most upsetting to such critics, however, is not the enormity of their racket, but that these local officials failed to conform themselves to established methods for the looting of taxpayers. Like Captain Renault in the movie, Casablanca, who informs Rick that he is ‘shocked, shocked to find that gambling is going on’ in his business—as he receives his gambling payoff from the croupier—the town government of Bell will receive a selective criticism of its behavior.

The origins of any productive system seem to be traceable to conditions in which the self-interest driven purposes of individuals are allowed expression. These include the respect for autonomy and inviolability of personal boundaries that define liberty and peace and allow for cooperation for mutual ends. Support for such an environment has led to the flourishing of human activity not only in the production of material well-being, but in the arts, literature, philosophy, entrepreneurship, mathematics, spiritual inquiries, the sciences, medicine, engineering, invention, exploration, and other dimensions that fire the varied imaginations and energies of mankind.

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The 1920s are part of that critical period discussed by the historian James Gilbert in his study of the development of collectivist thinking, a phenomenon he relates to the emergence of ‘a new industrial civilization in which the giant business organization was the dominant force.’ As Gilbert has demonstrated, the architects of twentieth century American collectivism had patterned their ideas on the industrial corporation as the central organizational tool. Any form of collectivism is, after all, ‘conservative’ in nature, being premised on the establishment of static, rigidly structured social relationships designed to restrain any influences that would pose the threat of substantial change. A symbiotic relationship thus developed between the forces of "social reform" and those advocating the conservation of existing economic institutions and relationships. In twentieth-century ‘ liberalism, declared the historian James Weinstein, many business leaders saw ‘a means of securing the existing social order.’

The pyramid expresses the essence of a world premised on vertical power, in which interpersonal relationships are yoked together in systems of domination and subservience. No more poignant image of a top-down world—one in which institutional violence operates as a kind of ersatz gravitational force—exists than this. Members of the institutional hierarchy—who long ago learned that they could more readily benefit by coercing their fellow humans than by trading with them—have seen to it that others be inculcated in a belief in the necessity of pyramidalism. Our entire institutionalized world—from the more violent political organizations to more temperate ideologies—is premised on the shared assumption that only in vertically-structured institutionalized authority can mankind find conditions of peace, liberty, and order.

The State has encouraged us to develop expectations of other people, and promised to compel the fulfillment of those expectations. It has persuaded us that others are the cause of our failures, and that others should be responsible for our happiness and well-being. It has offered to save us the effect of developing self-discipline, convincing us of the superiority of institutionally-imposed discipline in providing for social order. It has pandered to our worst fears about ourselves and others, concocting bogeymen and perilous threats from which it has promised protection.

[I]nstitutions are the principle means by which conflict is produced and managed in society. Peace is incompatible with institutional activity. Stated in another way, the success of institutions depends upon the creation of those conditions in which personal and social conflict will flourish.

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During the years 1918-38, notions of economic autonomy and self-regulating market behavior confronted the forces of industrial concentration. Free competition-with attendant low prices and aggressive trade practices—was identified with the older, unstructured forms of organization characterized by smaller, self-governing business firms. An unrestrained marketplace brought with it the specter of incessant change, a condition that was unacceptable to those charged with the responsibilities of managing and preserving the assets and market positions of business organizations. In the confrontation between ‘individualism’ and ‘instituti6nalism,’ competition came to be identified with the decentralized, unstructured practices representing the past. Individual self-interest, with its decentralizing tendencies, had to be suppressed in favor of the emerging institutional order. The attack on autonomy was a defense of the new order: the institutionally dominant, centrally directed, collective society.

As the historian Robert Himmelberg has pointed out, many businessmen were not only desirous of modifying the antitrust laws in order to permit trade agreements among competitors but of continuing the WIB in order to protect industries from postwar price adjustments. In connection with such an objective, Bernard Baruch recommended to [Woodrow Wilson |President Wilson]] that the board be continued in existence, an action that Baruch felt Wilson could take as part of his general war powers. Wilson declined.

To Toto fell the task of exposing the humbuggery that manipulated both the institutional machinery and followers. Because he did not share his companions’ trembling reverence for established wizardry, this free-spirited, tagalong mutt was able to approach the screen that separated the leaders from the followers. In knocking over that screen, however, Toto did far more than simply reveal the systematic bamboozlement of the Ozians. He also made it possible for his companions to discover that the personal qualities they had labored to earn as institutionally-bestowed rewards, were qualities that had always been within themselves. In believing that the virtues they sought lay outside themselves, and that some institutional alchemy could convert their leaden instincts to golden conduct (to paraphrase Herbert Spencer), they had set themselves up to be manipulated and exploited for the benefit of institutional interests.