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There's a fringe political theory popular among those influential in education policy that smart students need to be artificially constrained for the good of society. This view is deeply unpopular with the general public both right AND left.

Is it any wonder people are losing trust in this system?

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Right or wrong, these policies only affect the outliers, and so won't show up on broad statistics. For the large majority of people, quality of gifted education isn't their concern.

The extrapolation is that this policy drags everyone down instead of lifting anyone up. Gifted kids are just the canary in the coal mine

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