Status markers frequently indicate unusual access to resources as well as or even instead of character traits.
Subsidizing status markers dilutes them by making them less common.
How would you tell which factor is more important in the dilution of a status marker?
I can't parse your post, but that may be partly because I don't understand how subsidizing status markers would produce character traits to begin with.
Another month has passed and here is a new rationality quotes thread. The usual rules are: