While Kristol's basic statement may be correct in some cases, I don't agree with the direction he goes from it. Essentially, the neocons have concluded that even though religion isn't really true, it's appropriate to tell the masses that it is so that they'll do what we tell them:
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Philosophers know the truth, but must keep it hidden from the vulgar, lest it upset them. What is the hidden truth known to philosophers? That there is no God and there is no ultimate foundation for morality. As Kristol suggests, it is necessary to keep this truth from the vulgar because such knowledge would only engender despair in them and lead to social breakdown.
I.e. the masses are sheep, and the intellectuals are their shepherds.
We do this with children -- we tell them to be good so that Santa will bring presents. This is accepted because their moral senses haven't matured -- children are inherently selfish and need this type of persuasion until they've learned to make good decisions for good reasons.
Should grown-ups really be treated the same way? Do they have to be bribed with eternal salvation so that they'll be good?
Actually, it's the other way around: religion is a good way to get people to do BAD things. Could anyone imagine using Darwinism to convince someone to become a suicide bomber?