What does "grade inflation" mean exactly? So, students' grades have increased since the last generation of college students; is that justified cause for concern?

There are two reasons that GPAs have increased. One, college is more important now than ever. Consequently, it is more important to learn more and earn a higher GPA. We have all heard stories from our parents' generation about how college didn't matter that much; it was enough to just have a degree. Today, having a degree doesn't separate us from the competition. We need a high GPA to get into graduate, law and medical school.

The second reason is simply that because there is more emphasis today on getting a degree, more people apply to college, so colleges can be more picky. Of course, the admissions office will choose the cream of the crop and therefore will have students with higher GPAs. One result of having more students with higher GPAs is that it creates a studious atmosphere. If everyone around you studies often and earns high marks, you'd be prone to do the same (to some degree); the converse is also true.

"Grade inflation" is purely a consequence of our increased value on education. There's no need to debate about which departments, professors or classes should be scrutinized. Attaining a degree from a school with a higher GPA should say more about the school's integrity -- as in, there was a plethora of bright, young individuals there.