Academic Leniency Harms Human Capital

Relaxing grading and other academic standards can raise average GPAs on paper while causing lower‑ability students to reduce effort (lower attendance and course grades), producing worse standardized test performance (ACT) and deeper engagement gaps over time. The net effect can be a deterioration in measured and real human capital despite superficially better credentials. — If lenient grading policies trade short‑term credential inflation for long‑term losses in student skills, then school and college policy reforms aimed at raising attainment may unintentionally worsen inequality and labor‑market readiness.