Why Even Meritocracy Hasn't Saved Us From Our Winner-Take-All Economy

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Elites naturally resist policies that threaten to undermine their advantages. But it is simply not possible to get rich off your own human capital without exploiting yourself and impoverishing your inner life, and meritocrats who hope to have their cake and eat it too deceive themselves. Building a society in which a good education and good jobs are available to a broader swath of people--so that reaching the very highest rungs of the ladder is simply less important--is the only way to ease the strains that now drive the elite to cling to their status.

How can that be done? For one thing, education--whose benefits are concentrated in the extravagantly trained children of rich parents--must become open and inclusive. Private schools and universities should lose their tax-exempt status unless at least half of their students come from families in the bottom two-thirds of the income distribution. And public subsidies should encourage schools to meet this requirement by expanding enrollment.

A parallel policy agenda must reform work, by favoring goods and services produced by workers who do not have elaborate training or fancy degrees. For example, the health-care system should emphasize public health, preventive care, and other measures that can be overseen primarily by nurse practitioners, rather than high-tech treatments that require specialist doctors. The legal system should deploy "legal technicians"--not all of whom would need to have a J.D.--to manage routine matters, such as real-estate transactions, simple wills, and even uncontested divorces. In finance, regulations that limit exotic financial engineering and favor small local and regional banks can shift jobs to mid-skilled workers. And management should embrace practices that distribute control beyond the C-suite, to empower everyone else in the firm.

... Nevertheless, there are grounds for hope. History does present one clear-cut case of an orderly recovery from concentrated inequality: In the 1920s and '30s, the U.S. answered the Great Depression by adopting the New Deal framework that would eventually build the mid-century middle class. Crucially, government redistribution was not the primary engine of this process. The broadly shared prosperity that this regime established came, mostly, from an economy and a labor market that promoted economic equality over hierarchy--by dramatically expanding access to education, as under the GI Bill, and then placing mid-skilled, middle-class workers at the center of production.