This chapter begins by first exploring the difference between understanding social class as stratification and understanding social class as a power relation between particular groups especially in Australian Schooling. Secondly, since teachers are often said to be 'middle class' and schools to promote 'middle class culture', then the exploration moves to examine the 'problem' of the middle class: does it exist and, if so, what is a useful way for thinking about this 'class' and its culture? This exploration of the notion of a middle class raises the issue of divisions within the working class and maintains that these divisions are in part the result of competition in the labour market, but ultimately are caused by the ruling class. Thirdly, the chapter returns to the question of stratification and reveals that schools, as part of the state, deliberately stratify students using a competitive academic meritocracy. This acts to 'divide and-rule' the working class. Finally, an assessment is made of the ambivalent opportunities in schools for fostering social justice.