Lain your description is eerily similar to the Hukou system:https://en.wikipedia.org/wiki/Hukou_system
Used for political suppression, surveillance of dissidents, and maintenance of a large-scale economic underclass of serfs sweating their livelihoods away for the primary benefit of a very small number of overconfident, non-productive economic elites and their offspring.
Look into who is influencing your politicians and set them straight, mate. Is this the world you want to build for your offspring? Or would you prefer a more egalitarian system?
Straylian hukou is real, Lain.