Steve, the simple answer is that of course others deserve a shot but reality says it doesn't happen often enough. Personally, I don't mind political dynasties. Heck, I don't even mind the handing down of a business to the son or daughter for generations. Sometimes you really do get some good people that way. Sometimes you don't.
I'm not a big fan of monarchies. Fortunately, there is a difference between a political dynasty and a monarchy. If we don't like the relative, we don't have to elect them or re-elect them.
America has been far more fortunate than many nations. Most of our leaders have been pretty good and some downright exceptional. We have had few that were absolute failures. Many of their private morals have been dismal at best but have shown themselves to be very able leaders. Some have had impeccable morals and been lousy leaders. A very few like Truman have had morals that the world should emulate and was an excellent leader.
On the political dynasties, we've been pretty lucky, too. Both John Adams and John Quincy Adams were elitists but very able presidents. FDR and Teddy R both served this country well. While we may not like Ted Kennedy's morals, he has been a pretty good senator. JFK may not have been the best president and made some pretty bad mistakes and he definitely had the morals of an alley cat, but he was beloved before and after his death and his administration did accomplish some good things, too. Bobby may well have been the best of the Kennedy group but we'll never know. Caroline really does seem to follow more in the Bobby line and she may well be the best Kennedy we've seen (she's certainly brighter than her brother). I certainly wouldn't cry if I were a New Yorker and she was appointed. I probably would be disappointed that other, more able people were not given the position, but there definitely could be much worse choices for the two years remaining.
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