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> What do you plan to do with the people who don't pass though?

Remedial classes. Or, realistically, unskilled labor.

Like, what do we do with these kids now? The same thing, except after we’ve saddled them with a meaningless diploma and a pile of debt.

They are still there either way. They don't suddenly become smarter and/or hard working because we pretend.

If anything, it simply increases the pool of people who realize you don't need to try.

We hope the social redistribution that would have to be there to help those that fail, and those employed to teach them, is less expensive than every citizen forced to sacrifice 8 years of prime life time and tens of thousands of dollars.

Because that is how we are redistributing from successful people to not-successful ones right now.

Ironic because it is the people who push for just passing everyone that are actually doing it to just "make the problem go away", in reality.

You can't make people more knowledgeable by not attempting to measure their knowledge. You can maybe try to improve things for subsequent generations. But issuing a false credential won't solve the problem.