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At the macro level having more and more drop outs is detrimental to society because this creates a mob of dumb masses that could theoretically vote stupidly... or not at all.
But at the micro level, if you made it through the educational system and went on to higher education, having more and more people drop out at the early stages makes you more valuable as a skilled laborer since there are fewer and fewer graduates to do jobs a dropout cant.
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