State universities provide great examples of using human creativity under socialism/fascism (state-run or state-controlled systems). It is not used for productive goals. Instead, it is used by bureaucrats to achieve their own goals.
State universities are given more taxpayer money when they have more students. That creates incentives to retain students even if they show no evidence of learning.
Moreover, administrators have relatives and friends whom they want to help pass classes. In
“Measuring Performance in Education: Why Do Many Teachers Dislike It?” and “Is American Education a Fraud?”I describe some ways university administrators pressure faculty to pass students regardless of their performance.
When that fails, sometimes administrators simply change the grades that professors give.
Author's summary: Administrators influence grading for personal gain.