> schools that graduate students who are illiterate and innumerate have failed

I don't disagree.

But at the same time, it's also important to ask: was that child offered to learn and apply themselves in the same, stable environment as a child from a more wealthy upbringing? If the answer is no, that child was done a disservice. If the answer is yes, and they still fail, obviously don't graduate them...

The goal shouldn't ever be "Just pass everyone" it should be making sure that every child has the same opportunity and circumstances to succeed.