Unequal access to basic services puts the certain group at a disadvantage. This is seen in the impoverished areas of America where people don't have access to proper education, food, shelter or health care. This results in a group of people that are uneducated about the law, hungry and in poor condition. They essentially become vulnerable to crime because they eventually resort to illegal acts of crime in order to make money, get food etc. They also do not know how to defend themselves in the eyes of the law due to not having access to basic services such as education.
This is making a comparison to Pinocchio. Saying it was such an obvious lie I’m surprised his nose didn’t start growing is an exaggeration of how unbelievable and far-fetched his lie fib was.