nepotism is bad anywhere, but you have a wrong understanding of nepotism. For example, in Japan it is going practice that career politicians pass on the baton to the kid(s). It happens all the time and that high up in government. Sometimes the child was highly qualified, in other cases it was a lousy case of nepotism. Point here is that merit makes actually all the difference.
Nepotism in government is bad for reasons unrelated to merit, i.e., in your example, unrelated to "...know[ing] how to make money."