Are kids gaining weight because the pe programs were dropped in schools?

Hard to say: This is really not a medical question, but more of a social political one. That said the amount of exercise provided by school pe is trivial. A larger reason children may be getting obese is the overall lack of exercise caused by decreased opportunities for "pick up sports" that kids once played ( sandlot ball! ) .Sports may become overly organized and the province of only the athletically gifted.