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HS graduation exams are useful feature of most successful school systems. That so many people were passing those but still requiring remedial instruction indicates that there was something lacking. However, if graduation rate is the metric you are optimizing for, there is no need to pull those in.
"Freshmen who would usually be directed to developmental English or math will instead enroll in the same general education classes as their peers, but they might receive additional tutoring or take the course at a slower pace, stretched over multiple semesters. A summer program for incoming freshmen who need extra preparation will be redesigned to count for credit." http://www.sacbee.com/news/politics-government/capitol-alert...
This is where you are wrong. Classes such as remedial English or basic mathematics did not used to count for college credit, they now do. Therefore students can graduate with a lower level of performance than was previously possible.
Prussia was really the first example of this in the west, where in 1770 all civil servants were required to pass a written exam.
Then don't ask me to pay for you to do so. Check some books out of the library.
People are paying a lot of money to universities in exchange get a better life for themselves. If it doesn't improve their skills in any measurable way, we should try something else.
I think you are thinking of "merit" as some intrinsic property of a person as opposed to measured performance. Some things are hard to measure, but many things are not. Putting people into positions based on the best estimates of how well they would perform is meritocracy.
What is your system for selecting people for positions if not by how well they would perform at the positions? What this typically devolves into patrimonialism or clientelism...where positions are given to related persons, friends, or in exchange for political power.
[1] http://www.econtalk.org/archives/2017/06/robin_feldman_o.htm...
[2] https://www.amazon.com/Drug-Wars-Pharma-Raises-Generics-eboo...