It's a good question, you know: why *is* it still allowed to go on? Why not just randomly assign the kids to two (or however many) teams, instead of letting them pick people one by one? Why assume small children will be fair or tactful, when obviously they aren't that way unless someone sets them an example? And then being "team captain" could be a responsibility you earn by showing you can be fair and encouraging.
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And then being "team captain" could be a responsibility you earn by showing you can be fair and encouraging.