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There are some groups that think they decide that. Then there are some groups that think only a few people decide that.
The old Roman system liked only a few people to have citizen rights. And ideas of removal of citizenship even with removal of influence are a common claim by many groups.
The ability to 'decide' who a citizen is, allows for both a threat to get people to comply with some status quo rules, and a hording mentality of some in some groups.
Even concept of prison have that, since some rights are lost by prisoners. Although many try to say someone is in prison to claim their rights removed, that is an example of using classifications also, and is how blacklisting works. You can see comments on many tv shows around that concept.
There is a club mentality in much of society. If a group decides who gets in, then they can maintain a 'thought' on what is important for a group. And actually that is not a problem, unless that group does wrong to many people by setting up layers of status around a group.
So if you are restricted or benefited from some group affiliation, then that becomes a problem if any of the items in that preferential treatment or restricted treatment come from outside that system.
So a fraternity does not damage, if it does not take anything from anyone outside the fraternity to support itself, that is the problem with 'the old boys club' it is sustained by people outside the group, by people inside the group. If they did there own work, and in openness, it is not a problem, but advantage by edict of the group that takes advantage from people leads to bad situations for everyone, as they drift further away from society.
And preferential treatment to members is part of that problems also.
I still think the societal model is circular, where there is a structure, then there is an outside group that is not part of that structure that is at the other end of the status, but governs over the side with status. It makes better sense when answering who guards the guards. Since the way the guards are guarded is the job having no rewards, so only someone with ideals for better society would want that job. So the way to guard the guards, is have power in the worst positions in society, so nobody wants those jobs, unless it is for the ideal to be done when working for some better result.
Hence why a money centric society fails, since it leads to consolidation and then separation, then turmoil.
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