There is a difference between a family business, and people getting hired for jobs in a business that is not owned by their family because of personal relationships.

Also, not caring about a thing, because there are other things that are worse isn't a sign of great intelligence.

And if you do want to us that argument: nepotism is part of a bigger problem, people gaining power and influence because of social background rather than knowledge and skill.

That would be less of a problem is society made it easier for people who don't have a support network to get ahead in life.