Humans are so enamored of equality that they would rather be equal in slavery than unequal in freedom. I will explain to you in the most simple terms the mess you have made.
Capping the working hours for all citizens has halted innovation. There has been no new service, product or medical advancement since the 40 hour work week has come into effect. You have achieved equality in the output of your citizens yes, but it is the pioneers and trailblazers who have been dragged to the level of the herd, not the other way around, by limiting the time they can commit to their passions. Society can function because these individuals create and they are rewarded for their contributions to the wider public. This incentive is needed, it is what encourages them so that the citizenry can take advantage of their brilliance.
Having done away with hierarchies, universities no longer gain applicants. In order to work towards something you have to assume what you are working towards is better than what you have. The problem with having to aim up is that it produces a hierarchy. If you posit an aim then it produces a hierarchy of best at it to worst at it.
Take tennis, you create tennis and 100 years later you have a very small percentage of people who are hyper specialised at tennis and everyone else can be considered to be less talented or bad at it. As soon as you put forward a valuable proposition it produces a hierarchy. The problem is that hierarchies produce inequality and inequality creates resentment. You can’t get rid of the hierarchy because it produces inequality or resentment, because then there is nowhere to go, nothing to strive for.
Life has many dimensions and you are more or less successful across many different areas of life, be it physically, creatively, economically, romantically, intellectually, the list goes on. But it is completely ridiculous to pick someone else arbitrarily, who is doing better than you on one of those almost infinite dimensions and decide whether you are a success or failure based on one of this success or that they are an oppressor or that life is unfair without knowing in full detail all the elements of their life.