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A Hereditary Meritocracy
New Economic Thinking, 2019
Raghuram Rajan has recently written a book ‘The Third Pillar’ where he discusses how communities are left behind by the markets and the government. Here in this video, he highlights this ‘A hereditary Meritocracy’. This is also an issue focused by Daniel Markovits in his book ‘The Meritocracy Trap’. The same point was proven with empirical evidence by Raj Chetty in the paper “The fading American dream”.
Rajan identifies the “limitations” with the current economic systems of democracy and markets. He communicates that government and markets are not only interdependent on each other but also codependent on communities. This is being ignored largely. He suggests a rebalance of all the three pillars - government, society, business; especially by strengthening the weakest pillar - the community.
Go to: A Hereditary Meritocracy