This greatly underestimates the level of vanity. Look only at the number of people who inherited their wealth, or received substantial financial support, yet still consider themselves self-made. I would also expect this to concentrate deistic thinking as people with a religious mindset will see being chosen as God's will and use the gained power to reinforce that.
I don't think I'd want to live in a country governed by the Dunning-Kruger effect. (Or maybe I already do?)