Pluralistic: The meritocracy to eugenics pipeline (20 May 2025)


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A carefully labeled phrenological skull being measured by a pair of eugenicist's calipers, posed on a background of giant blood cells, which have been halftoned.

The meritocracy to eugenics pipeline (permalink)

It's kinda weird how, the more oligarchic our society gets, the more racist it gets. Why is the rise of billionaires attended by a revival of discredited eugenic ideas, dressed up in modern euphemisms like "race realism" and "human diversity"?

I think the answer lies in JK Galbraith's observation that "The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness."

The theory of markets goes like this: a market is a giant computer that is always crunching all kinds of "signals" about what people want and how much they want it, and which companies and individuals are most suited to different roles within the system. The laissez-faire proposition is that if we just resist the temptation to futz with the computer (to "distort the market"), it will select the best person for each position: workers, consumers, and, of course, "capital allocators" who decide where the money goes and thus what gets made.

The vast, distributed market computer is said to be superior to any kind of "central planning" because it can integrate new facts quickly and adjust production to suit varying needs. Let rents rise too high and the computer will trigger the subroutine that brings "self-interested" ("greedy") people into the market to build more housing and get a share of those sky-high rents, "coming back into equilibrium." But allow a bureaucracy to gum up the computer with a bunch of rules about how that housing should be built and the "lure new homebuilders" program will crash. Likewise, if the government steps in to cap the price of rents, the "price signal" will be silenced and that "new homebuilders" program won't even be triggered.

There's some logic to this. There are plenty of good things that market actors do that are motivated by self-interest rather than altruism. When Google founders Larry Page and Sergey Brin developed their Pagerank algorithm and revolutionized internet search, they weren't just solving a cool computer science problem – they were hoping to get rich.

But here's the thing: if you let Larry and Sergey tap the capital markets – if they can put on a convincing show for the "capital allocators" – then the market will happily supply them with the billions they need to buy and neutralize their competitors, to create barriers to entry for superior search engines, and become the "central planners" that market theory so deplores. If your business can't get any market oxygen, if no audience ever discovers your creative endeavors, does it matter if the central planner who decided you don't deserve a chance is elected or nominated by "the market"?

Here's how self-proclaimed market enthusiasts answer that question: all Larry and Sergey are doing here is another form of "capital allocation." They're allocating attention, deciding what can and can't be seen, in just the same way that a investor decides what will and won't be funded. If an investor doesn't fund promising projects, then some other investor will come along, fund them, get rich, and poach the funds that were once given to less-successful rivals. In the same way, if Google allocates attention badly, then someone will start a better search engine that's better at allocating attention, and we will switch to that new search engine, and Google will fail.

Again, this sounds reasonable, but a little scrutiny reveals it to be circular reasoning. Google has dominated search for a quarter of a century now. It has a 90% market share. According to the theory of self-correcting markets, this means that Google is very good at allocating our attention. What's more, if it feels like Google actually sucks at this – like Google's search-results are garbage – that doesn't mean Google it bad at search. It doesn't mean that Google is sacrificing quality to improve its bottom line (say, by scaling back on anti-spam spending, or by increasing the load of ads on a search results page).

It just means that doing better than Google is impossible. You can tell it's impossible, because it hasn't happened.

QED.

Google wasn't the first search engine, and it would be weird if it were the last. The internet and the world have changed a lot and the special skills, organizational structures and leadership that Google assembled to address the internet of the 2000s and the 2010s is unlikely to be the absolute perfect mix for the 2020s. And history teaches us that the kinds of people who can assemble thee skills, structures and leaders to succeed in one era are unlikely to be able to change over to the ideal mix for the next era.

Interpreting the persistent fact of Google's 90% market-share despite its plummeting quality as evidence of Google's excellence requires an incredible act of mental gymnastics. Rather than accepting the proposition that Google both dominates and sucks because it is excellent, we should at least consider the possibility that Google dominates while sucking because it cheats. And hey, wouldn't you know it, three federal courts have found Google to be a monopolist in three different ways in just a year.

Now, the market trufans will tell you that these judges who called Google a cheater are just futzers who can't keep their fingers off the beautiful, flawless market computer. By dragging Google into court, forcing its executives to answer impertinent questions, and publishing their emails, the court system is "distorting the market." Google is the best, because it is the biggest, and once it stops being the best, it will be toppled.

This makes perfect sense to people who buy the underlying logic of market-as-computer. For the rest of us, it strains credulity.

Now, think for a minute of the people who got rich off of Google. You have the founders – like Sergey Brin, who arrived in America as a penniless refugee and is now one of the richest people in the history of the human species. He got his fortune by building something that billions of us used trillions of times (maybe even quadrillions of times) – the greatest search engine the world had ever seen.

Brin isn't the only person who got rich off Google, of course. There are plenty of Googlers who performed different kinds of labor – coding, sure, but also accountancy, HR, graphic design, even catering in the company's famous cafeterias – who became "post-economic" (a euphemism for "so rich they don't ever need to think about money ever again") thanks to their role in Google's success.

There's a pretty good argument to be made that these people "earned" their money, in the sense that they did a job and that job generated some money and they took it home. We can argue about whether the share of the profits that went to different people was fair, or whether the people whose spending generated that profit got a good deal, or whether the product itself was good or ethical. But what is inarguable is that this was money that people got for doing something.

Then there's Google's investors. They made a lot of money, especially the early investors. Again, we can argue about whether investors should be rewarded for speculation, but there's no question that the investors in Google took a risk and got something back. They could have lost it all. In some meaningful sense, they made a good choice and were rewarded for it.

But now let's think about the next generation. The odds that these billionaires, centimillionaires and decimillionaires will spawn the next generation of 1%ers, 0.1%ers, and 0.0001%ers are very high. Right now, in America, the biggest predictor of being rich is having rich parents. Every billionaire on the Forbes under-30 list inherited their wealth:

https://ca.finance.yahoo.com/news/forbes-billionaires-under-30-inherited-203930435.html

The wealthy have created a system of dynastic wealth that puts the aristocratic method of primogenitor in the shade. Every scion of every one-percenter can have their own fortune and start their own dynasty, without lifting a finger. Their sole job is to sign the paperwork put before them by "wealth managers":

https://pluralistic.net/2021/06/19/dynastic-wealth/#caste

Yes, it's true that some of the very richest people on Earth got their money by investing, rather than inheriting it. Bill Gates's investment income growth exceeds even the growth of the world's richest woman, L'Oreal heiress Liliane Bettencourt, who never did anything of note apart from emerging from an extremely lucky orifice and then simply accruing:

https://memex.craphound.com/2014/06/24/thomas-pikettys-capital-in-the-21st-century/

But Bill Gates's wealth accumulation from investing exceeds the wealth he accumulated by founding and running the most successful company in history (at the time). Doing work never pays as much as allocating capital. And Gates's children? They can assume a Bettencourtian posture on a divan, mouths yawning wide for the passage of peeled grapes, and their fortunes will grow still larger. Same goes for their children, and their children's children.

Capitalism's self-mythologizing insists that the invisible hand owes no allegiance to yesterday's champions. The mere fact that the market rewarded you for allocating capital wisely during your tenure does not entitle your offspring to continue to allocate wealth in the years and centuries to come – not unless they, too, are capital allocators of such supremacy that they are superior to everyone born hereafter and will make the decisions that make the whole world better off.

Because that's the justification for inequality: that the market relentlessly seeks out the people with the skill and foresight to do things and invest in things that improve the world for all of us. If we interrupt that market process with regulations, taxes, or other "distorting" factors, then the market's quest for the right person for the right job will be thwarted and all of us will end up poorer. If we want the benefits of the invisible hand, we must not jostle the invisible elbow!

That's the justification for abolishing welfare, public education, public health, affirmative action, DEI, and any other programs that redistribute wealth to the least among us. If we get in the way of the market's selection process, we'll elevate incompetents to roles of power and importance and they will bungle those roles in ways that hurt us all. As Boris Johnson put it: "the harder you shake the pack the easier it will be for [big] cornflakes to get to the top":

https://www.theguardian.com/politics/2013/nov/28/boris-johnson-iq-intelligence-gordon-gekko

Which leaves the servants and defenders of the invisible hand with a rather awkward question: how is it that today, capital allocation is a hereditary role? We used to have the idea that fitness to allocate capital – that is, to govern the economy and the lives of all of the rest of us – was a situational matter. The rule was "shirtsleeves to shirtsleeves in three generations": "The first generation makes it, the second generation spends it, and the third generation blows it."

That's the lesson of the rags to riches story*: that out there, amongst the teeming grubby billions, lurks untold genius, waiting to be anointed by the market and turned loose to make us all better off.

  • In America, these stories are sometimes called "Horatio Alger" stories, after the writer who penned endless millionaire-pleasing fables about urchins who were adopted by wealthy older men who saw their promise and raised them to be captains of industry. However, in real life, Horatio Alger was a pedophile who adopted young boys and raped them:

https://newenglandhistoricalsociety.com/horatio-alger-hundred-year-old-secret/

Perhaps your life was saved by a surgeon who came from humble origins but made it through med school courtesy of Pell Grants. Perhaps you thrilled to a novel or a film made by an artist from a working class family who got their break through an NEA grant. Maybe the software you rely on every day, or the game that fills your evenings, was created by someone who learned their coding skills at a public library or publicly funded after-school program.

The presence among us of people who achieved social mobility and made our lives better is evidence that people are being born every moment with something to contribute that is markedly different, and higher in social status, than the role their parents played. Even if you stipulate that the person who cleans your toilet has been correctly sorted into a toilet-cleaning job by the invisible hand, it's clear that the invisible hand would prefer that at least some of those toilet-cleaners' kids should do something else for a living.

And yet, wealth remains stubbornly hereditary. Our capital allocators – who, during the post-war, post-New Deal era were often drawn from working families – are now increasingly, relentlessly born to that role.

For the wealthy, this is the origin of the meritocracy to eugenics pipeline. If power and privilege are inherited – and they are, ever moreso every day – then either we live in an extremely unfair society in which the privileged and the powerful have rigged the game…or the invisible hand has created a subspecies of thoroughbred humans who were literally born to rule.

This is the thesis of the ultra-rich, the moral justification for rigging the system so that their failsons and faildaughters will give rise to faildestinies of failgrandkids and failgreat-grandkids, whose emergence from history's luckiest orifices guarantees them a lifelong tenure ordering other people around. It's the justification for some people being born to own the places where the rest of us live, and the rest of us paying them half our salaries just so we don't end up sleeping on the sidewalk.

"Hereditary meritocracy" is just a polite way of saying "eugenics." It starts from the premise of the infallible invisible hand and then attributes all inequality in society to the hand's perfect judgment, its genetic insight in picking the best people for the best jobs. If people of one race are consistently on top of the pile, that's the market telling you something about their genomes. If men consistently fare better in the economy than women, the invisible hand is trying to say something about the Y chromosome for anyone with ears to hear.

Capitalism's winners have always needed "a superior moral justification for selfishness," a discreet varnish to shine up the old divine right of kings. Think of the millionaire who created a "Nobel Prize sperm-bank" (and then fraudulently fathered hundreds of children because he couldn't find any Nobelists willing to make a deposit):

https://memex.craphound.com/2006/09/07/nobel-prize-sperm-bank-human-tragicomedy-about-eugenics/

Or the billionaire founder of Telegram who has fathered over 100 children in a bid to pass on his "superior genes":

https://www.cnn.com/2024/08/26/tech/pavel-durov-telegram-profile-intl

Think of Trump and his endless boasting about his "good blood" and praise for the "bloodlines" of Henry Ford and other vicious antisemites:

https://www.usatoday.com/story/news/politics/2020/05/22/trump-criticized-praising-bloodlines-henry-ford-anti-semite/5242361002/

Or Elon Musk, building a compound where he hopes to LARP as Immortan Joe, with a harem of women who have borne his legion of children, who will carry on his genetic legacy:

https://www.nytimes.com/2024/10/29/business/elon-musk-children-compound.html

Inequality is a hell of a drug. There's plenty of evidence that becoming a billionaire rots your brain, and being born into a dynastic fortune is a thoroughly miserable experience:

https://pluralistic.net/2021/04/13/public-interest-pharma/#affluenza

The stories that rich people tell themselves about why this is the only way things can be ("There is no alternative" -M. Thatcher) always end up being stories about superior blood. Eugenics and inequality are inseparable companions.

Hey look at this (permalink)


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Latest books (permalink)


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Upcoming books (permalink)

  • Enshittification: Why Everything Suddenly Got Worse and What to Do About It, Farrar, Straus, Giroux, October 7 2025
    https://us.macmillan.com/books/9780374619329/enshittification/

  • Unauthorized Bread: a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, 2026

  • Enshittification, Why Everything Suddenly Got Worse and What to Do About It (the graphic novel), Firstsecond, 2026

  • The Memex Method, Farrar, Straus, Giroux, 2026


Colophon (permalink)

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Currently writing:

  • Enshittification: a nonfiction book about platform decay for Farrar, Straus, Giroux. Status: second pass edit underway (readaloud)

  • A Little Brother short story about DIY insulin PLANNING

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