The Meritocracy Trap

1. Meritocracy has transformed inequality, creating a new elite class

"Meritocracy makes the Ivy League, Silicon Valley, and Wall Street into arenas for elite ambition."

A new elite emerges: Meritocracy has fundamentally changed the nature of inequality in modern society. Unlike the old aristocracy, which derived its status from birth and inherited wealth, the new meritocratic elite gains its position through intense education, skills, and effort. This shift has created a class of "superordinate workers" who dominate high-paying, prestigious fields like finance, technology, and professional services.

Concentration of advantage: The meritocratic system concentrates advantages in education, income, and status among a narrow elite. This concentration is self-reinforcing, as elite parents invest heavily in their children's education and development, perpetuating their advantaged position across generations. The result is a new form of social stratification that is arguably more entrenched and difficult to overcome than previous systems of inequality.

2. The middle class is being hollowed out, leading to economic and social polarization

"Meritocracy blocks the middle class from opportunity. Then it blames those who lose a competition for income and status that, even when everyone plays by the rules, only the rich can win."

Declining middle-class prospects: The traditional pathways to middle-class stability and prosperity are disappearing. Mid-skilled jobs that once provided good wages and opportunities for advancement are being eliminated or devalued. This leaves many middle-class workers facing stagnant wages, job insecurity, and diminished social status.

Widening gaps: As the middle class shrinks, society becomes increasingly polarized between:

• A small, highly educated, and well-compensated elite
• A growing class of workers in low-wage, low-skill "gloomy" jobs
• A precarious group struggling to maintain middle-class status

This polarization manifests not just economically, but socially and culturally as well. The elite and non-elite increasingly live in separate worlds, with different lifestyles, values, and opportunities for their children.

3. Elite education has become a dynastic technology, perpetuating inequality

"The meritocratic inheritance comes with strings attached, which threaten now to tie the meritocratic elite in knots."

Education as the new inheritance: Wealthy parents invest enormous resources into their children's education, starting from early childhood. This includes:

• Expensive private schools
• Tutors and test preparation
• Enrichment activities
• Legacy admissions advantages

These investments create a "meritocratic inheritance" estimated to be worth millions of dollars per child, effectively passing down elite status to the next generation.

Pressure on elite children: While this system perpetuates advantage, it also places immense pressure on elite children to succeed academically and professionally. The college admissions process becomes increasingly competitive and anxiety-inducing. Elite education, intended to open doors, can also create a narrow and stressed cohort of young people focused solely on achievement.

4. Work has been divided into "gloomy" and "glossy" jobs, favoring super-skilled labor

"Meritocracy makes skill into a fetish—an object of desire, invested with almost magical powers, that frustrates those who cannot attain it."

Labor market polarization: The economy has increasingly split into two types of jobs:

• "Gloomy" jobs: Low-skill, low-wage work with little opportunity for advancement
• "Glossy" jobs: High-skill, high-wage positions requiring elite credentials

This division has eliminated many middle-skill jobs that once formed the backbone of the middle class.

The rise of superordinate workers: A small class of "superordinate workers" now dominates high-paying fields like finance, technology, and management consulting. These workers are characterized by:

• Elite educational credentials
• Extremely long work hours
• High productivity enabled by technology
• Disproportionate compensation relative to other workers

The concentration of economic rewards among these superordinate workers drives much of the increase in income inequality.

5. Innovation now disproportionately benefits the elite, creating a skill-biased economy

"Expensive workers induce innovators to invent jigs that make other workers cheap."

Skill-biased technological change: Recent technological innovations have tended to benefit highly skilled workers while making many middle-skill jobs obsolete. This "skill-biased technological change" increases demand for workers with elite educations while reducing opportunities for those without such credentials.

Examples of skill-biased innovation:

• Finance: Complex financial instruments require highly trained quants
• Management: Data analytics allow executives to directly control large operations
• Retail: E-commerce eliminates many traditional retail jobs
• Manufacturing: Automation replaces assembly line workers

This pattern of innovation reinforces meritocratic inequality by further concentrating economic gains among a small, highly educated elite.

6. Meritocracy's feedback loops create self-reinforcing, snowballing inequality

"Meritocratic inequality grows by feeding on itself."

Mutually reinforcing mechanisms: Meritocracy creates several interlocking feedback loops that amplify inequality over time:

1. Education loop:

   • Elite parents invest heavily in children's education
   • Children gain admission to top schools
   • Elite education leads to high-paying jobs
   • High incomes allow for investment in next generation's education

2. Innovation loop:

   • Presence of highly skilled workers drives skill-biased innovation
   • New technologies increase demand for elite skills
   • Rising returns to skill encourage more investment in elite education

3. Cultural loop:

   • Meritocratic success reinforces belief in the system
   • Belief in meritocracy justifies further concentration of advantage

These loops create a self-perpetuating cycle of increasing inequality that becomes harder to break over time.

7. The concept of "merit" itself is flawed and serves to justify unjust inequalities

"Merit itself has become a counterfeit virtue, a false idol."

Merit as a social construct: The book argues that what we consider "merit" is not an objective measure of worth or productivity, but rather a socially constructed concept that reflects and reinforces existing power structures. The skills and attributes valued by the meritocratic system are themselves products of unequal social and economic conditions.

Circular justification: Meritocracy uses the idea of merit to justify inequalities that are, in fact, prerequisites for the system itself. For example:

• Elite education is seen as proof of merit
• But access to elite education depends on pre-existing advantages
• The economic value of elite skills depends on a system already skewed towards inequality

This circularity makes meritocratic inequality particularly resistant to criticism and reform.

8. Both the elite and middle class suffer under meritocracy, albeit in different ways

"Meritocracy traps entire generations inside demeaning fears and inauthentic ambitions: always hungry, never finding, or even knowing, the right food."

Middle-class frustrations:

• Stagnant wages and job insecurity
• Diminished social status
• Feeling of being "left behind" by the economy
• Resentment towards perceived elite condescension

Elite burdens:

• Extreme work hours and stress
• Pressure to constantly prove one's worth
• Alienation from authentic interests and passions
• Anxiety about maintaining status for oneself and one's children

While the material circumstances differ greatly, both groups experience forms of dissatisfaction and loss of autonomy under the meritocratic system.

9. Conventional progressive approaches fail to address meritocracy's core problems

"Progressives cannot answer because they remain under meritocracy's thumb. They are captives who embrace their captor, through a sort of ideological Stockholm syndrome."

Limitations of current approaches:

• Focus on poverty relief ignores middle-class discontent
• Emphasis on diversity and inclusion within elite institutions doesn't challenge fundamental inequalities
• Belief in education as the solution reinforces meritocratic ideology

Need for new framing: The book argues that progressives must fundamentally rethink their approach to inequality. This requires:

• Recognizing meritocracy itself as a source of injustice
• Addressing middle-class grievances alongside poverty
• Challenging the concentration of advantage in elite institutions

Without this shift, progressive policies risk further entrenching meritocratic inequality while failing to build broad coalitions for change.

10. Reforming education and work can help dismantle meritocratic inequality

"Elites, for their part, should also support education reform. For all the financial subsidies that it bestows, the current regime leaves elites battered, bruised, and vulnerable."

Education reform priorities:

• Make elite education more inclusive by expanding enrollments
• Reduce tax benefits for exclusive private schools
• Decrease emphasis on hyper-competitive admissions

Work reform strategies:

• Promote mid-skilled jobs through policy and regulation
• Reform payroll taxes to incentivize middle-class employment
• Provide wage subsidies for middle-class jobs

Potential benefits:

• For the middle class: Increased economic opportunities and social mobility
• For elites: Reduced pressure and a more stable, cohesive society
• For all: A more democratic and equitable economic system

The book argues that these reforms can help reverse the self-reinforcing cycles of meritocratic inequality, creating a more balanced and just society.

Last updated: August 30, 2024