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I really don't see this as a problem in politics at all. Sure it happens, but if you look at our presidents anyway, from Kennedy through Bush we had almost 40 years and 6 presidents all of whom were self-made men from varying degrees of poverty to middle-class.
And after all, would it be more democratic to bar relatives from office? With the exception of appointments all of these dynasties were democratically elected, and even the appointments have to face the voters sooner or later.
Now the chattering class dynasties are a different matter.