Should all attendees of government schools receive passing grades and graduate with honors???? ?

Answer 1

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roflmao.  no.  employers would quickly learn that such graduates have no credentials useful for predicting their work performance ... thus, they'd want to defund such schools more than ever -- and they'd certainly insist on pre-employment testing and weeding out those who don't do well.

Answer 2

Yes, as long as they kneel to the Flag and to the President but not to God.