In reality, it is simply a division into "us" and "them." This concept is applied in our state (and not only in ours), and has also been applied throughout the millennia of human history, but in reality, it is just kindergarten. A wise ruler (and there have been very few truly wise rulers in human history) does not react to the conditioned human mind and proceeds from common sense, rather than from systems and established concepts. Sooner or later, one has to leave all systems behind and discover something greater than any "foundations." Non-reaction does not mean saying: "I am above all this" and ignoring the needs of the people; it simply means separating human madness from real needs. For example, a large number of people participated in the M-200 Tournaments, and these tournaments truly brought life and joy to the forum, but the opinion of people that "M-200 is for noobs" was not recognized as a conditioned human mind and became a generally accepted truth. People need these tournaments, despite any opinions to the contrary.
As Lao Tzu said (whose teachings were used by many wise rulers): "A wise ruler looks at the people as he looks at his children." One must be vigilant and sufficiently detached in order to understand what people really need, and to distinguish this from the temporary turmoil on the surface, from all these concepts and ideas that only obscure the truth instead of revealing it.