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I didn't say the organizations were meritocratic. I said the grunts have to know what they're doing. I explicitly said mangers don't. And the more power they have, the less they know what they are doing.
For this reason a lot of good code just gets thrown away. Something like Vista is the result of management; not the result of bad engineering.
I didn't say business was rational. All I said was that on the ground level, if people are incompetent they get fired even if they have degrees from top universities and have great cocktail chatter.
It's funny though, a close friend who is one of the best programmers I know is basically giving up on working for IT because he wants his work to make a difference in the world and he's tired of making venture capitalists rich. So. We're all pretty much just drowning in it.
Joanna