Such as system does exist, but it is filled with issues. Halo effect and other biases impact memories, in ways that we would not tolerate being made explicit. We are more forgiving of some people than others, we tolerate some forms of stress as a possible excuse (not a complete removal, but to allow for much quicker redemption) than other forms of stress. Rules are selectively applied, and this all gets fed into confirmation biases where we overlook the bad done by people labeled as good and the good done by people labeled as bad (often with the labels themselves being unjustified in their application).

The larger the social network grows, the worse this system performs. Stereotypes develop because we don't have capacity to judge each individual, confirmation biases reinforce stereotypes until individuals cease to exist, as the stereotype prevents them from becoming close enough to ever overcome it.

So while this system has always existed (well at least as long as recorded history), it continuously worsens and is increasingly at odds with a globalized world.