Literacy in America

Starting at 3rd grade we split students into two groups. Group A and Group B. In group A the students are made aware of their grammatical mistakes but not counted off for them for the rest of their school career. Group B is normal grading. Will the lack of fear from failing help group A be more creative? Which group is better off in the long run? Keep in mind that every teacher has an idea of what good writing is. Would this prevent them from imposing their views on the students?