
Larry Summers, 2013
One of the most aggravating things in the world, at least to me, are smart stupid people.
Think Larry Summers. IQ around 170, people who know him say he’s brilliant, and he’s been wrong about almost everything that mattered. Among his highlights, perhaps the most important was pushing to repeal the Glass-Steagall Act, which was perhaps the most important in causing the housing bubble and financial collapse.
If you don’t like IQ (and I understand and don’t want this to become an IQ debate) call it processing power. Some people have more of it, a lot more.
Being really smart, but being a bad thinker, just gets you to the wrong place faster. Worse it makes you more certain you are correct.
Being really smart, as smart people with a bit of insight realize in their teens or twenties at the latest, means never having to say “I was wrong.” You can almost always find a reason, a work-around, to maintain the opinion you wanted.
Oh, sometimes you are wrong about something you can’t quite deny, perhaps you predicted an election incorrectly. But in such cases you can still keep your model by finding something your model didn’t include, and shouldn’t have to. Think the bright lads and lassies behind Clinton’s campaign: “It was the Russians! They cheated! Our campaign should have won!” Never mind that they didn’t send Clinton or significant resources to the most important battleground states, which she lost by very low margins, and which their model considered “easy wins.”
Nope, they weren’t wrong and neither was their model, it was all Russians. (See “Everything Cost Clinton the Election.“)
So: Very smart means you get there faster, wherever there is, and that you almost never have to admit you’re wrong.
Bad, bad combination.
Further, our education system trains smart people to be authority-worshiping idiots. In school, you get the best marks for getting the answer teacher wants in the way teacher wants. You get kudos for being the kid seated at the front who puts up their hand first.
Get the approved answer fastest, in exactly the approved way.
So you learn models, and you execute them as you learn them. If the models are right, great, but the models are never right. (No, sorry, this is true in every social science and in the physical sciences–whenever you’re dealing with anything that doesn’t amount to engineering.)
Our educational system teaches people to be calculators, not thinkers–to run quickly through models and get the expected results from running the models. If the models are wrong, say, for example, people aren’t utility maximizers (if you could even figure out what that is) as opposed to rational decision makers, resources and sinks aren’t substitutable (think carbon sinks/aka. climate change, or soil) then running your models will run you (and society) off a cliff.
To revisit a prior analogy, processing power, or IQ, is the power of a motorcycle’s engine. Actual ability to think well is the skill of the rider. If you’re going down a freeway with no other vehicles, the only thing which matters is the power of the engine.
But if you’re going off-road, through twisty paths, with other vehicles all around, the skill of the rider becomes paramount. Without a skilled driver, all a good engine is going to do is make you crash sooner and worse (possibly taking other people with you.)
People get very confused about this. I have a good, smart friend who praises Dick Cheney for being a smart hard-worker. If even someone like him couldn’t get things to work…But Cheney was a smart person applying a number of world models. His model of how the bureaucracy and the US government worked worked with each other and how to in-fight and how to control a bureaucracy (government, or the contractors surrounding government) was brilliant and correct. His model of how the world outside that government-industrial complex worked was, well, almost completely wrong.
So he pushed to invade Iraq as part of a project to invade and remake the Middle East and it blew up in his face, because how he thought the world worked was wrong outside a narrow, but very important, area. (After all, being correct about how the world’s only superpower’s government and contractors work is powerful.)
How he thought successful societies work and are run, how he modeled what would happen in a power vacuum (when current Iraq elites were removed), and how he imagined what military force could and couldn’t do were all wrong. His larger context economic, political, and military models were all wrong.
This doesn’t mean he wasn’t brilliant. It doesn’t mean he didn’t have a lot of processing power. But in practice, in the world beyond his world, he was an absolute moron and everything he touched (that didn’t involve power in the Government-Industrial complex) blew up.
In the old days we used to call this Doctor Complex. Doctors make life and death decisions. They have a lot of authority (and had a lot more 30 to 60 years ago.) A good doctor in his field was a veritable God (surgeons have the worst cases of this complex). People hop when he or she says frog, and they save lives regularly.
So they tend to think because they are good at this, they are good at everything.
No one is good at thinking about everything. I’m not (I get electoral results wrong often enough I’m a contrary indicator). No one is.
The first part of being a first rate thinker, then, is knowing where you think well and where you don’t. The second part is knowing why. If you don’t know the conditions for your own good thought, then you don’t know when and where your models will fail. You see this all the time with “genius” traders or investors: Their model works in a particular type of market or economy, but when that changes, it doesn’t. They didn’t actually have a complete model, and, in many cases, they just had rules of thumb for which they didn’t understand the reasons.
Machiavelli made this a keystone of his political philosophy: You should change with the times, but most people won’t or can’t. When the conditions of their success go away, so does their success.
Processing power, absent understanding of how to think, including an understanding of the conditions of one’s own models, leads to disaster. You must understand what you were trained to do, as well, or like Summers and so many economists, you will be wrong about almost everything. Models exist to do things, and often what they exist to do is ideological–not to explain something, but to create something or justify something. Confusing those three functions will drive you off a cliff.
So, brains are good. Big bulging brains are wonderful. But like high explosives or big motorcycle engines, used incorrectly all they do is blow up in your face, or cause huge accidents,
Don’t rely too much on processing power. Learn how to think, and above all, learn about what you’re bad at thinking about. (Then, if you care enough, learn why and fix it.)
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I’ve thought a lot about immigration in my time, and confess, I’ve never thought very highly of it. Which, of late, seems to be an extremely unpopular position among liberals. But it’s not that I’m anti-immigrant, per se. It’s that I’m militantly pro-place. I sympathize with my place.


