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.

We delude ourselves with the beliefs that the establish order suffers from only from policy or style defects, and that the new leadership or legislation or organization reforms are sufficient to overcome any problems. We can tinker with the machinery, but dare not think of doing without it. We may be willing to believe that the emperor is naked, but certainly not the empire itself.

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.

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It is this institutional group-think that now finds itself threatened by new technologies that do not lend themselves to centralized controls. The Internet and other unstructured tools will continue to destabilize the herds that the institutional order has worked so feverishly to keep confined to their assigned pastures.

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Even as modern society manifests its collapse in the form of violent crime, economic dislocation, seemingly endless warfare, inter-group hostilities, the decay of cities, a growing disaffection with institutions, and a general sense that nothing ‘works right’ anymore, faith in the traditional model continues to drive the pyramidal systems. Most people still cling to the belief that there is something that can be done by political institutions to change such conditions: a new piece of legislation can be enacted, a judicial ruling can be ordered, or a new agency regulation can be promulgated. When a government-run program ends in disaster, the mechanistic mantra is invariably invoked: ‘we will find out what went wrong and fix it so that this doesn’t happen again.’ That the traditional model itself, which is grounded in the state’s power to control the lives and property of individuals to desired ends, may be the principal contributor to such social disorder goes largely unexplored.

The problem with all of this, as historians advise us, is that the institutionalization of the systems that produce the values upon which a civilization depends, ultimately bring about the destruction of that civilization. Arnold Toynbee observed that a civilization begins to break down when there is ‘a loss of creative power in the souls of creative individuals,’ and, in time, the ‘differentiation and diversity’ that characterized a dynamic civilization, is replaced by ‘a tendency towards standardization and uniformity.’ The emergence of a ‘universal state,’ and increased militarism, represent later stages in the disintegration of a civilization.

Western Civilization is in the crisis it is because we have sacrificed more profound values than the immediate and quantifiable consequences we tend to associate with the pursuit of our material interests. Among these are peace; liberty; respect for property, contracts, and the inviolability of the individual; truthfulness and the development of the mind; integrity; distrust of power; a sense of spirituality; and philosophically-principled behavior. But when our culture becomes driven by material concerns, these less tangible values recede in importance, and our thinking becomes dominated by the need to preserve the organizational forms that we see as having served our interests.

In such a volatile climate, change became one of the few constants upon which businessmen could rely. Economic survival often depended upon innovative resiliency; firms with higher unit costs and prices had to either be- come more efficient or drop out of the race. Instability and turnover were continuing threats with which firms had to contend. The severity of the competitive struggle was best reflected in the automobile industry: of the 181 firms manufacturing cars at some time during the years 1903 to 1926, 83 remained in business as of 1922, while 20 managed to survive through 1938.

The history of institutionalized society has been principally one of the organization and management of conflict. Do institutions not encourage the duality in our thinking that promotes the practices of projecting good and bad characteristics onto others? Do they not encourage and exploit both scapegoating and authority worship, continually reminding us of the presence of some object of fear or hared, or some other source of conflict, and consoling us that they, alone, can make our lives secure?

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.

[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.

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.

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.