Moral progress proceeds from economic progress.<
What is progress with respect to either? Could you possibly mean that moral states - the moral conditions of a society - follow from the economic state - the condition and system of economy. I do find it hard to see a clear, unbiased definition of moral or economic progress.
I do not know if you have read Gatto or not based on this. He points out that the system has no memory of its origin and that changes occur just like you describe with the result of deepening the problem. The last major school reform was GW Bush's No Child Left Behind....if that tells you anything about who "fixes" the system.
The statements of intent where made in writing and in speeches. I would do it for you but linking on the droid is not fun. Google "Rockefeller mencken quotes education" and the first link should lend some insight into the intent of the designers of the compulsory public school system. Gatto did a lot of research to support the thesis that schools are designed to dumb down the populace.
Schools do not teach any critical thinking and for good reason. Ivan Illich wrote "Deschooling Society" in the 70s and John Taylor Gatto started writing the "The Underground History of American Education" in the 90s. Either should give you insight into why teachers do what they do, but Gattos's "Weapons of Mass Instruction" is probably the best place to start. The short answer is that schools are designed from the top down to stunt the intellectual growth of children regardless of the intentions of teachers.
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