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There was an excerpt of this story in a literature textbook I used in high school. I cannot remember the title or the author's name, but it was about a scientist who invents a test to see if people are sane enough to continue as members of society. Most of the world's population fails the test because it's ridiculous and end up in huge asylums across the globe.
If anyone could help identify this short story I would be very grateful. Thank you!
I believe you are asking about "SQ" By Ursula LeGuin.
The story is told from the point of view of the secretary to a researcher turned policy-maker Dr. Speakie. The good doctor has invented a test that (provably) determines a person's degree of sanity--as represented by their sanity quotient (SQ)--and arranged for the governments of the world to require people to regularly pass the test or be sent for (humane) rehabilitation.
Over time, increasingly large portions of the worlds population have been sent for rehabilitation, and Dr. Speakie's office has taken over world wide administrative duties. The story ends with even the good doctor losing it and the secretary acting as the world government.
The story is a humorous gem and manages to be a sly warning against the dangers of letting governments do things for our own good without getting bitter or overwrought.
