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I think the problem is yes - the people themselves are both aware but happy with the situation. The rise of the middle-classes has happened under Putin and they're quite content to vote for Mr. Putin for the rest of their lives in return for the new lifestyle.
As for the peasants, I understand they think he's a strong leader and therefore he has their support. It'll be interesting to see whether recent policy changes like the decreasing of veterans pensions will have an adverse effect on support in the lower classes though.
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