Well, to be clear, I’m describing a system where hereditary wealth is a determinant in whether an individual develops meritorious behavior patterns, which then lead to success. That is in fact still a meritocracy.
Actually, value IS in fact determined by price. They are in fact the same thing. This may not be the thread for a discussion of value theory, but whatever, this thread’s trash anyway.
In fact, nearly all economists agree that market failures exist: situations in which the values assigned by the market are not what they should be.
While there are certainly events which can be described as “market failures”, the issue is never really that the prices determined by the market are “wrong”. Because such a statement presumes that there is some other “right” value which the market does not reflect. But that assumption is wholely unsubstantiated. It’s an imaginary notion which is totally impossible to derive. How are you determining what that “correct” value is? Why is that determination better than the market’s? There are no good answers to these questions, which is why all non-market-based value theories fail miserably at determining value.
For instance, the market assigns a high value to methamphetamine cooks, because they make a product that millions of consumers are willing to pay a lot for. And it assigns low value to basic science research, because few consumers want to pay for it themselves.
And you think that’s incorrect? Why?
Those meth cooks are providing a service that millions of people want. While you, personally, may not find value in their services, your personal opinion is not omniscient or more valid.
But the market does not have the final word, so these failures are identified and corrected using another, more final standard of value.
Again… what is that “more final standard of value”? You’re making a common mistake here in presupposing that there is some sort of inherent value in objects.
Second, capitalism is a system of allocating resources. But meritocracy, like democracy, aristocracy, and theocracy, is a system of assigning power to leaders. The purposes are orthogonal, because a market can choose its leaders however it wants. In a public company, leaders are chosen because of their popularity, using democratic (or oligarchic) means. In a family run business, leaders are chosen through nepotism. And in a Silicon Valley startup, they might be chosen because of their ability or credentials (ie meritocracy). There is nothing about capitalism that intrinsically favors the latter.
Well, there kind of is, in that if leaders are chosen poorly, instead of through an ability to effectively run a business, then it ultimately detracts from that business’ ability to operate effectively. This will eventually cause it to lose marketshare to companies which are operated in a more effective manner, comparatively.