work politics (what is the right thing to do)?

Tough question.

Talk to his superiors. Often, employees will be reluctant to approach their obnoxious boss's superiors, thinking they will be condemned for their disloyalty whereas in reality, the superiors will welcome feedback and candor. You must keep the criticisms objective - don't get emotional and no personal insults, no matter how frustrated you are. In other words, don't complain that "he IS a....", complain that "I think the work product was wrong in this instance because...". Mention also that you are considering quitting - bosses often need to be shocked into acting.

Research your boss's background. Arrogance and condescension is often done to cover up personal insecurities. Why is he so insecure? Look at his CV/resume - anything on it that is obviously a lie? Often these kinds of people lie on their CV/resume, and if so, you have something to use against him if push comes to shove.

Don't expect his superiors to do anything about it immediately. It will take time for you to get them around to your views and they are likely to need evidence from different sources, in order to act. Provide superiors with hard evidence of incompetence if you can. So you may need to be a little stoical and patient.

Caucus with colleagues who feel the same way as you do, so you can work together to undermine the obnoxious boss if they agree with you. It can be fun and relieve frustration and stress to have "bitching sessions" behind the boss's back.

Do some research via Google to become a bit of an expert on exactly what is and what isn't considered "workplace harassment" and "workplace bullying". Learn the definitions of things like "micromanagement" (e.g. of one term that comes to mind) so that you can put labels on each of your bosses' obnoxious and arrogant behaviours.

Then keep a secret "harassment diary" where you log each time you have been harassed. You then need to remember and articulate what your complaints are at will at any time. Often, what happens is that the big boss will come down and ask the employees if there are any complaints, and the employees miss their chance by not being prepared.

If the supervisor is telling you to do something stupid, do it. If he's telling you to do something immoral, take it to HR. Think Enron--no one can get away with "just following orders" anymore.

In the mean time, polish your resume and keep your eyes open for a different position in the company or a job in a different company that's a better fit for you.

In my day you could tell the jackass off and have another job

the next day Glad I'm retired to many jackasses in the corporate world.

They way their screwing things you are caught between the rock and the hard place

Look at Wal-Mart they have over a billion employees so instead of combining forces they continue to eat their ****. The people have given their power away. and haven't a clue