I forget where I read it, but it makes sense. The reason for grade inflation and many others ailments of college is that colleges are no longer institutions of learning. They are corporations who sell a product to customers, and as such want to keep their customers happy. So, what customer (usually the parent footing the bill directly or with loans) wants to hear that they just paid $50k and their kid got an F. It’s a much easier sell to the parents when their kids are getting great grades (without much effort) etc. Also, one thing that struck me a few years ago when we were going through the college tour thing for my kids was how the schools always seemed to make a big deal of Sally and Tommy having multiple majors. “Tommy is majoring in History, Math, Spanish, and Theater!!” see how much you’re getting for your money. Nevermind he won’t be able to get a job, that’s after you’ve taken out the loans.
Basically, like almost everything nowadays in the US, this is what higher education looks like in a Capitalistic/Fascistic country.