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On a macro level, karma is the best social control mechanism ever, because it's passive. "Know your place, lower castes--be good, play nice,and next life you get a shot at something better. Now shut up and starve with a smile on your face while I bang your wife!"
That said, on a micro level, nobody likes an asshole, and once stories get out and everyone knows your an asshole, someone will screw you back. So in that sense, it holds true.
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