The chapter describes how Napoleon and the pigs gradually implement oppressive policies on the farm. They overwork the animals and change the rules, such as allowing the pigs to sleep in beds. When the windmill is destroyed, Napoleon falsely blames Snowball to scapegoat him. By creating a common enemy, Napoleon unites the animals behind him as he consolidates his power and control over the farm. The chapter shows how totalitarian regimes operate through propaganda, rewriting history, and oppressing the population with excessive work and control.