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As to literacy rates here is a link to the US stats.
http://nces.ed.gov/naal/lit_history.asp#educational
There are some critics who claim that traditional measures of literacy were inadequate, that's why they now have terms like "functionally illiterate". But whatever the measure educational achievement has gone up in the US over time.
It may have stagnated in the recent past, but the effects of the large increase in immigration would have to be factored in.
In addition kids today know more than did those in earlier periods, their exposure to radio, TV and now the internet means they are more informed than in prior periods. In an earlier age when high school graduation was achieved by the minority it was possible for the curriculum to be more rigorous (although whether this is true is also open to debate, and certainly dependent upon region) schools thought nothing of having students leave before graduation.
Now there is a big push for everyone to graduate from high school. When this is combined with the idea that all students should get an "academic" diploma and that separating students by ability is unacceptable there has been a degree of dumbing down in the school districts with limited resources. Schools with more money figure out ways to get around this by use of enrichment or other supplemental programs. Even if they don't the parents send their kids to SAT prep and other programs.
I've written often on the value of education as an end in itself and as one of those activities which could be undertaken throughout life for enrichment without the need to tie it to job goals. This is another of my post-materialist suggestions. Policies not Politics ---- Daily Landscape
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