https://www.city-journal.org/html/who-killed-horatio-alger-13413.html
The title character of Horatio Alger’s 1867 novel Ragged Dick is an illiterate New York bootblack who, bolstered by his optimism, honesty, industriousness, and desire to “grow up ’spectable,” raises himself into the middle class. Alger’s novels are frequently misunderstood as mere rags-to-riches tales. In fact, they recount their protagonists’ journeys from rags to respectability, celebrating American capitalism and suggesting that the American dream is within everyone’s reach. The novels were idealized, of course; even in America, virtue alone never guaranteed success, and American capitalism during Alger’s time was far from perfect. Nevertheless, the stories were close enough to the truth that they became bestsellers, while America became known as a land of opportunity—a place whose capitalist system benefited the hardworking and the virtuous. In a word, it was a meritocracy.
To this day, Americans are unusually supportive of meritocracy, and their support goes a long way toward explaining their embrace of American-style capitalism. According to one recent study, just 40 percent of Americans attribute higher incomes primarily to luck rather than hard work—compared with 54 percent of Germans, 66 percent of Danes, and 75 percent of Brazilians. But perception cannot survive for long when it is distant from reality, and recent trends seem to indicate that America is drifting away from its meritocratic ideals. If the drifting continues, the result could be a breakdown of popular support for free markets and the demise of America’s unique version of capitalism.
The fundamental role of an economic system, even an extremely primitive one, is to assign responsibility and reward. In animal packs, the responsibility of leadership and the reward of mating opportunities are generally assigned to the strongest. In human societies, responsibility tends to take the form of employment, and the rewards are money and prestige. Because physical strength has long since lost its importance, economic systems determine in various ways who receives the responsibilities and the rewards. The dominant criterion in traditional society was birth: the king’s firstborn son was the next king; the landowner’s firstborn son, the new landowner; and the son of the company’s owner, the next chief executive. Most modern societies, by contrast, try to select and reward according to merit. Indeed, surveys show that in the abstract, most people in developed countries agree with the idea that merit should be rewarded.
It isn’t easy to decide what constitutes merit, of course. Consider an environment with which I’m familiar: American academia. Let’s say you want to determine who the best professors are. How do you rank publications? Do you value the number of papers that someone has written, or their impact?