I agree with those that think it's the right mix of both. Straight out fear may work for the short term, but if the carrot isn't intermingled with the stick, then people will revolt - maybe not right away but at some time...and in the mob it seems to happen more frequently than not... (see castellano, casso getting an attempted hit on him by gotti's boy "quack quack")... i think the old timers like gambino, luciano, costello knew the right way to rule and to allow everyone to eat at the table as it were..