[...] You are referring to the Imperial Academy. On Arkanis.
The upper classes of Arkanis benefitted from the ridiculous privileges conferred by membership in the Elder Houses. Industry or not, they would have flourished. There were downtrodden people there, too, I'm sure. Any system not entirely devoted to the benefit of all will be commandeered in favor of the few - nothing's more certain than that. The Empire, for all its graces, was beholden to more than one system which was contrary to its true purpose. Tradition and personal bias and bloody mad monks</s> historically ingrained institutions can be difficult to see, if one hasn't been given the tools to step outside of them and look.