This is the definition I am using:

a system, organization, or society in which people are chosen and moved into positions of success, power, and influence on the basis of their demonstrated abilities and merit.

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For practical purposes it failed. If every attempt to achieve it failed then it’s just a failure.

If you follow the subjective “it was never really achieved for it to fail” logic then anyone can claim nothing ever fails.

Meritocracy and the American dream didn’t fail, we just never achieved it for it to fail then?

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