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I think the best counterargument is this @daguerrean's post from the latest fun thread. The more meritocracy you have, the more soul-crushing the grind becomes. Personal tutoring can't get you from 1000 to 1400 SAT points, but it can get you from 1400 to 1450. Which means you will lose your spot in Harvard to someone like you who has spent even more time on grinding and got all the way to 1455. The end result is South Korea, which is great to import cars and electronics from, but is a pretty terrible place to live in, no one wants to procreate there.
Yes, examining every single child and sorting them globally is a more efficient use of their brainpower, but is this efficiency worth it? You yourself mentioned that class and accumulated wealth are passable proxies for g. Any significant outliers are usually noticed and get to advance, not to the very top, but if their intelligence is heritable, their children can take the next step. Your subcontinental ancestors probably went too far with the rigidity of jātis, but a more flexible (yet still rigid) European class system works. I'm not saying it's perfect, but turning the dial all the way to the max, East Asian style, is not the best option.
That's just a metric problem. Ivies in the 1920s had very hard entrance exams, and also forced the gals to be pretty and the guys to be strapping jocks.
Ivy entrance rates back in the day were pretty generous and you could still get a solid thumb on the scale. The exams were hard, but they relied on knowledge of things like Greek and Latin and Classical Civilization that the working classes just didn’t have.
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