Some actions will result in light punishment (e.g., high probability of not getting caught) while some will result in severe punishment. One can effectively rule by fear by making it difficult to predict or estimate the amount of punishment an action will have.
Problematic are those with a personality trait that they are always pushing the boundary to see just how much they can get away with, always breaking the rules. These people must be destroyed, marginalized, or prevented from being created. The knowledge that they have must be suppressed (censorship) from being communicated to others.
(Nods to Machiavelli.)
Examine these mechanisms being actually deployed.
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