This is what is called a "positional arms race". A comparable situation can be seen in football players and steroids. One does it, so all feel they must do it or be "left behind". For all this struggle, no one is better and most are where they started. Now they must also deal with the huge medical issues that steroids can cause. If every one stopped, all would be better. However, no one wants to be the "sucker" who s…
I think it's down to many factors that makes society less competitive:
- I know that if my kid screws up, they'll still be comfortable (have healthcare, pension,...)
- Higher education is free so It's not an "investment" or a "risk" that needs to pay off for me or them. I hope they'll study because they find it interesting. If they do, they won't need a great career to pay of student debt.
- Admission to higher education is never made on soft or arbitrary values such as past participation in extra curricular activities. If my kid scores better on the standardized tests, they'll snag a position at the best school over any a kid that is the child of a billionaire who was always president of all clubs and plays 24 musical instruments.
- Education isn't very competitive. In 20 years of school I never saw a "ranking" where anyones results or grades were published, e.g. where someone was declared "top of class" or similar.