The very high incidence of school dropouts throughout the nation is viewed as one of the major factors contributing to the failure of the American educational system, affecting not only the schools but the society as a whole. The social, political, and economic implications of the dropout problem are explored. The ability of the United States to compete in world markets is compromised because of the lack of skills of today's high school graduates, let alone those who have not finished high school. Particular emphasis is placed on the problems faced by Latino children. Some progress has been made in curtailing school desertion by Black and White children, but Latino students continue to quit school in large numbers. Some of the reasons for dropping out are discussed in quotes from students who have dropped out of school. A short skit is presented that dramatizes the dropout problem in light of the educational bureaucracy. An additional attachment is the "Quick Reference Guide to School Dropouts (1983-1991)" a list of 556 sources on the dropout problem. Five figures and two tables illustrate the discussion. (Contains 105 references.) (SLD)