It hooks them up to a VR simulation of 1950's america and they're the abusive husband to a hot wife and two kids. Racism is alive and well and the USA and white people by extension run the world.
They can never leave, much like the matrix they're locked into the simulation for life but it's more humane than wholesale genocide because let's face it, a lot of people in the USA deserve it.
The matrix is fiction, it depicted that in the movie, it doesn't really seek to prove the same irl
Oh shit didn't realize we had blue pills here, yes yes the matrix was just a movie and dorpheus was just a prank in the office