I think before we suggest whether policy is good or bad, we need to agree on the meaning of vague terms like "societal erosion." What about society is eroding? You mention IQ and literacy. What about tolerance, open-mindedness, compassion, equality, financial success... Some of these things are going up and some are going down. Are there other dimension to "societal erosion?"
i do think it's important to define what a healthy society looks like, but I'm going to guess everyone will have a very different answer. It's a topic that likely doesn't have any kind of straightforward response with unanimous agreement.
I would argue that beyond basics like food, shelter and protection of human rights, we should strive for more noble pursuits as society. I'm not even religious whatsoever, but I think the proliferation of certain vices like sex/gambling/drugs is probably a net negative for society. They certainly have their roles in the long tail, but overall a society that is caught up in rampant dopamine chasing is a distracted, doomed society. We should always be yearning. We should be paving a road that is a better one for our future generations. Societal erosion is creating short term profit/happiness at the expense of long term thinking. America has become the king of this. You can see it everywhere, from the types of businesses people create (e.g pyramid schemes in the form of courses, or the shovel makers that create businesses to proliferate said pyramid schemes) to what is currently valued by the growing generation. I can keep going and going, but I'll leave it here. I hope I somewhat made my point. I'm sure many will disagree, and that is why this country is on its way downwards. The few smart will own and create a lot of value for themselves, we'll likely have a few trillionaires, and the majority will be bumbling idiots that can barely read. We're not there yet, but we're well on the way there