That's really not technically true. The term "nepotism" originated from Catholic bishops and popes granting their unqualified nephews lucrative positions in the church ... it's always been seen as unethical, and has only been used to describe behavior perceived as unethical.

The dictionary definition of nepotism is "favoritism (as in appointment to a job) based on kinship."

This is a troubling signal of income inequality and social immobility, sure -- but it isn't nepotism.