This doens't only apply to America, and I wish more people understood that actually the same concept was the reason "communism" (state capitalism really) failed in Europe, possibly also in Russia - the same mechanism were in place, strengthened by fear. The stakes were higher, you were looking at a catastrophic effect on your and your family's place in society if you got on some higher-ups hit list. Super stupid and incompetent people have risen to the top, and often are still near - in every sector.

I think this is why a no-stakes system should be strived for. You shouldn't have to live in fear due to losing your job or pissing someone off. Basically it should not matter whether you still have a job or not.