Followup toThe Level Above Mine

(Anyone who didn't like yesterday's post should probably avoid this one.)

I remember what a shock it was to first meet Steve Jurvetson, of the venture capital firm Draper Fisher Jurvetson.

Steve Jurvetson talked fast and articulately, could follow long chains of reasoning, was familiar with a wide variety of technologies, and was happy to drag in analogies from outside sciences like biology—good ones, too.

I once saw Eric Drexler present an analogy between biological immune systems and the "active shield" concept in nanotechnology, arguing that just as biological systems managed to stave off invaders without the whole community collapsing, nanotechnological immune systems could do the same.

I thought this was a poor analogy, and was going to point out some flaws during the Q&A.  But Steve Jurvetson, who was in line before me, proceeded to demolish the argument even more thoroughly.  Jurvetson pointed out the evolutionary tradeoff between virulence and transmission that keeps natural viruses in check, talked about how greater interconnectedness led to larger pandemics—it was very nicely done, demolishing the surface analogy by correct reference to deeper biological details.

I was shocked, meeting Steve Jurvetson, because from everything I'd read about venture capitalists before then, VCs were supposed to be fools in business suits, who couldn't understand technology or engineers or the needs of a fragile young startup, but who'd gotten ahold of large amounts of money by dint of seeming reliable to other business suits.

One of the major surprises I received when I moved out of childhood into the real world, was the degree to which the world is stratified by genuine competence.

Now, yes, Steve Jurvetson is not just a randomly selected big-name venture capitalist.  He is a big-name VC who often shows up at transhumanist conferences.  But I am not drawing a line through just one data point.

I was invited once to a gathering of the mid-level power elite, where around half the attendees were "CEO of something"—mostly technology companies, but occasionally "something" was a public company or a sizable hedge fund.  I was expecting to be the youngest person there, but it turned out that my age wasn't unusual—there were several accomplished individuals who were younger.  This was the point at which I realized that my child prodigy license had officially completely expired.

Now, admittedly, this was a closed conference run by people clueful enough to think "Let's invite Eliezer Yudkowsky" even though I'm not a CEO.  So this was an incredibly cherry-picked sample.  Even so...

Even so, these people of the Power Elite were visibly much smarter than average mortals.  In conversation they spoke quickly, sensibly, and by and large intelligently. When talk turned to deep and difficult topics, they understood faster, made fewer mistakes, were readier to adopt others' suggestions.

No, even worse than that, much worse than that: these CEOs and CTOs and hedge-fund traders, these folk of the mid-level power elite, seemed happier and more alive.

This, I suspect, is one of those truths so horrible that you can't talk about it in public.  This is something that reporters must not write about, when they visit gatherings of the power elite.

Because the last news your readers want to hear, is that this person who is wealthier than you, is also smarter, happier, and not a bad person morally.  Your reader would much rather read about how these folks are overworked to the bone or suffering from existential ennui.  Failing that, your readers want to hear how the upper echelons got there by cheating, or at least smarming their way to the top.  If you said anything as hideous as, "They seem more alive," you'd get lynched.

But I am an independent scholar, not much beholden.  I should be able to say it out loud if anyone can. I'm talking about this topic... for more than one reason; but it is the truth as I see it, and an important truth which others don't talk about (in writing?).  It is something that led me down wrong pathways when I was young and inexperienced.

I used to think—not from experience, but from the general memetic atmosphere I grew up in—that executives were just people who, by dint of superior charisma and butt-kissing, had managed to work their way to the top positions at the corporate hog trough.

No, that was just a more comfortable meme, at least when it comes to what people put down in writing and pass around.  The story of the horrible boss gets passed around more than the story of the boss who is, not just competent, but more competent than you.

But entering the real world, I found out that the average mortal really can't be an executive.  Even the average manager can't function without a higher-level manager above them.  What is it that makes an executive?  I don't know, because I'm not a professional in this area.  If I had to take a guess, I would call it "functioning without recourse"—living without any level above you to take over if you falter, or even to tell you if you're getting it wrong.  To just get it done, even if the problem requires you to do something unusual, without anyone being there to look over your work and pencil in a few corrections.

Now, I'm sure that there are plenty of people out there bearing executive titles who are not executives.

And yet there seem to be a remarkable number of people out there bearing executive titles who actually do have the executive-nature, who can thrive on the final level that gets the job done without recourse.  I'm not going to take sides on whether today's executives are overpaid, but those executive titles occupied by actual executives, are not being paid for nothing.  Someone who can be an executive at all, even a below-average executive, is a rare find.

The people who'd like to be boss of their company, to sit back in that comfortable chair with a lovely golden parachute—most of them couldn't make it.  If you try to drop executive responsibility on someone who lacks executive-nature—on the theory that most people can do it if given the chance—then they'll melt and catch fire.

This is not the sort of unpleasant truth that anyone would warn you about—at least not in books, and all I had read were books.  Who would say it?  A reporter?  It's not news that people want to hear.  An executive?  Who would believe that self-valuing story?

I expect that my life experience constitutes an extremely biased sample of the power elite.  I don't have to deal with the executives of arbitrary corporations, or form business relationships with people I never selected.  I just meet them at gatherings and talk to the interesting ones.

But the business world is not the only venue where I've encountered the upper echelons and discovered that, amazingly, they actually are better at what they do.

Case in point:  Professor Rodney Brooks, CTO of iRobot and former director of the MIT AI Lab, who spoke at the 2007 Singularity Summit.  I had previously known "Rodney Brooks" primarily as the promoter of yet another dreadful nouvelle paradigm in AI—the embodiment of AIs in robots, and the forsaking of deliberation for complicated reflexes that didn't involve modeling.  Definitely not a friend to the Bayesian faction.  Yet somehow Brooks had managed to become a major mainstream name, a household brand in AI...

And by golly, Brooks sounded intelligent and original.  He gave off a visible aura of competence.  (Though not a thousand-year vampire aura of terrifying swift perfection like E.T. Jaynes's carefully crafted book.)  But Brooks could have held his own at any gathering I attended; from his aura I would put him at the Steve Jurvetson level or higher.

(Interesting question:  If I'm not judging Brooks by the goodness of his AI theories, what is it that made him seem smart to me?  I don't remember any stunning epiphanies in his presentation at the Summit.  I didn't talk to him very long in person.  He just came across as... formidable, somehow.)

The major names in an academic field, at least the ones that I run into, often do seem a lot smarter than the average scientist.

I tried—once—going to an interesting-sounding mainstream AI conference that happened to be in my area.  I met ordinary research scholars and looked at their posterboards and read some of their papers.  I watched their presentations and talked to them at lunch.  And they were way below the level of the big names.  I mean, they weren't visibly incompetent, they had their various research interests and I'm sure they were doing passable work on them.  And I gave up and left before the conference was over, because I kept thinking "What am I even doing here?"

An intermediate stratum, above the ordinary scientist but below the ordinary CEO, is that of, say, partners at a non-big-name venture capital firm.  The way their aura feels to me, is that they can hold up one end of an interesting conversation, but they don't sound very original, and they don't sparkle with extra life force.

I wonder if you have to reach the Jurvetson level before thinking outside the "Outside the Box" box starts to become a serious possibility.  Or maybe that art can be taught, but isn't, and the Jurvetson level is where it starts to happen spontaneously.  It's at this level that I talk to people and find that they routinely have interesting thoughts I haven't heard before.

Hedge-fund people sparkle with extra life force.  At least the ones I've talked to.  Large amounts of money seem to attract smart people.  No, really.

If you're wondering how it could be possible that the upper echelons of the world could be genuinely intelligent, and yet the world is so screwed up...

Well, part of that may be due to my biased sample.

Also, I've met a few Congresspersons and they struck me as being at around the non-big-name venture capital level, not the hedge fund level or the Jurvetson level.  (Still, note that e.g. George W. Bush used to sound a lot smarter than he does now.)

But mainly:  It takes an astronomically high threshold of intelligence + experience + rationality before a screwup becomes surprising.  There's "smart" and then there's "smart enough for your cognitive mechanisms to reliably decide to sign up for cryonics".  Einstein was a deist, etc.  See also Eliezer1996 and the edited volume "How Smart People Can Be So Stupid".  I've always been skeptical that Jeff Skilling of Enron was world-class smart, but I can easily visualize him being able to sparkle in conversation.

Still, so far as I can tell, the world's upper echelons—in those few cases I've tested, within that extremely biased sample that I encounter—really are more intelligent.

Not just, "it's who you know, not what you know".  Not just personal charisma and Machiavellian maneuvering.  Not just promotion of incompetents by other incompetents.

I don't say that this never happens.  I'm sure it happens.  I'm sure it's endemic in all sorts of places.

But there's a flip side to the story, which doesn't get talked about so much: you really do find a lot more cream as you move closer to the top.

It's a standard idea that people who make it to the elite, tend to stop talking to ordinary mortals, and only hang out with other people at their level of the elite.

That's easy for me to believe.  But I suspect that the reason is more disturbing than simple snobbery.  A reporter, writing about that, would pass it off as snobbery.  But it makes entire sense in terms of expected utility, from their viewpoint.  Even if all they're doing is looking for someone to talk to—just talk to.

Visiting that gathering of the mid-level power elite, it was suddenly obvious why the people who attended that conference might want to only hang out with other people who attended that conference.  So long as they can talk to each other, there's no point in taking a chance on outsiders who are statistically unlikely to sparkle with the same level of life force.

When you make it to the power elite, there are all sorts of people who want to talk to you.  But until they make it into the power elite, it's not in your interest to take a chance on talking to them.  Frustrating as that seems when you're on the outside trying to get in!  On the inside, it's just more expected fun to hang around people who've already proven themselves competent.  I think that's how it must be, for them.  (I'm not part of that world, though I can walk through it and be recognized as something strange but sparkly.)

There's another world out there, richer in more than money.  Journalists don't report on that part, and instead just talk about the big houses and the yachts.  Maybe the journalists can't perceive it, because you can't discriminate more than one level above your own.  Or maybe it's such an awful truth that no one wants to hear about it, on either side of the fence.  It's easier for me to talk about such things, because, rightly or wrongly, I imagine that I can imagine technologies of an order that could bridge even that gap.

I've never been to a gathering of the top-level elite (World Economic Forum level), so I have no idea if people are even more alive up there, or if the curve turns and starts heading downward.

And really, I've never been to any sort of power-elite gathering except those organized by the sort of person that would invite me.  Maybe that world I've experienced, is only a tiny minority carved out within the power elite.  I really don't know.  If for some reason it made a difference, I'd try to plan for both possibilities.

But I'm pretty sure that, statistically speaking, there's a lot more cream at the top than most people seem willing to admit in writing.

Such is the hideously unfair world we live in, which I do hope to fix.

 

Part of the sequence Yudkowsky's Coming of Age

Next post: "Above-Average AI Scientists"

Previous post: "The Level Above Mine"

Comments

sorted by
magical algorithm
Highlighting new comments since Today at 12:47 PM
Select new highlight date
All comments loaded

You seem to be relying almost entirely on your intuitive sense of people being smart, fast, "sparkly" etc. Yes, people at the top are good at giving other top people the impression they are smart. The question though is whether they are actually more productive in other ways. To evaluate that you need to look at metrics other than how sparkly the seem to you.

I had the same worry at seeing him gush.

However, the conclusion that there is a higher probability of meeting high-intellect people in power/reputation elites compared to lesser tiers, seems undeniable, since we believe smarts increase effectiveness.

Eliezer was excited by wondering whether the difference might be dramatic. I think it isn't, but our tendency to be inordinately excited by high status people might still make it worth seeking out their company if we can do so. Certainly the magical status sparkles may rub off on us ;)

From Eliezer's post:

And by golly, Brooks sounded intelligent and original. He gave off a visible aura of competence. (Though not a thousand-year vampire aura of terrifying swift perfection like E.T. Jaynes's carefully crafted book.)

The obvious explanation for the sparks is that Brooks and the other sparkly people must only be the lesser Twilight-type vampires.

Eliezer,

In my experience, smart people have many original theories. They likely hold these theories because they know they are smarter than most people, and so don't see any reason to trust common knowledge. Also, holding original and complex theories make them seem more intelligent. Most original theories are of course incorrect, even when they come from smart people. Intelligent, charismatic people are very good at convincing themselves and others they are correct.

IMO, this is one of the main reasons those, smart, competent people in charge screw up so often. They don't do it because they aren't smart or competent, they do it because they have a bias in favor of their own ideas and theories, just like everyone else.

The other problem is that when they dismiss other people, they dismiss their observations, not just their theories.

The smarter you are, the more likely you are to think you're the exception, and neglect the outside view.

That curve got to bend at some point -- if you're very very very smart you should realize this and adjust for it.

I'd say the smarter you think you are, the more likely you are to think you're the exception. I'd say that saying that IQ positively correlates with overconfidence is a much stronger claim than saying that the overconfidence effect exists.

Smart, happy, and alive? That fits my observations. Not bad morally? Only in the Bay area. Also, I think that more successful people seem smarter etc due to halo effect, and the ability to seem smart and alive and generally appealing, even moral, is called social skill or charisma and contributes a lot to a person's rise in power. You may have noticed that these people were also much better looking than average.

At the most elite gathering I have attended, the Clinton Giving Initiative, about one person in five was really interesting and shiny.

That said, my impression of start-ups is that relative to their importance the founder/CEO generally gets badly under-compensated. Successful founder/CEOs are generally extremely capable people in their domains.

BTW, there are plenty of management consultants to look over executive's shoulders and pencil in corrections. Also, I keep telling you, Einstein was NOT a deist in the sense that you understand it. I wish someone would ask Carl Feynman why his dad didn't sign up for cryonics given that he knew Drexler.

Your assessment of the CEOs is based on how impressive they seem. Keep in mind that one of the main jobs of a CEO is being a good schmoozer and an inspiring leader. They are selected for their ability to appear smart, to convince others to follow their ideas, and generally to "sparkle". Of course it helps if they actually are smart, but that's not the primary criterion.

What happens if you base your assessment only what they've personally accomplished or written (as for Jaynes) where it can be separated from their charisma and force of personality? I'm guessing most of them wouldn't nearly do so well.

(My apologies if it turns out you no longer hold the opinions I'm responding to. I'm new here.)

Still, so far as I can tell, the world's upper echelons - in those few cases I've tested, within that extremely biased sample that I encounter - really are more intelligent.

You have acknowledged the problem with the method by which you arrived at these views, and then gone right on asserting them.

I seem to recall that you dislike this behavior in others:

It is all too easy to meet every counterargument by saying, "Well, of course I could be wrong." Then, having dutifully genuflected in the direction of Modesty, having made the required obeisance, you can go on about your way without changing a thing.

Perhaps you only find this sort of hypothesis troublesome when people keep on believing it despite other people's objections? Are your self-criticisms exempt? If not, I really don't see how you're supporting the notion that people in power-elites are generally more competent than people who aren't. You've identified the fault in the belief already; you've said in as many words that your sample is severely biased.

If you went looking for power-elites full of lucky bastards or extremely persistent dullards, I'm sure you'd find a lot. I don't think it's worth your time to go looking, unless you really believe that elites are more competent, in which case you need to test that belief like a good rationalist.

My personal opinion is that it's fairly useless to generalize about such a vague group of people as "those who hold the most power and/or money". About the only things you can conclude about that kind of group are that they have a lot of power and money. If you like, you can look at how they got it, at which point you're looking at a subset: "those who got their power and/or money this way". Or, you can study the most generally effective ways of getting power and/or money, which are by necessity culturally specific but might let you make some weak but valid generalizations about what sorts of people get into the elite classes of a particular culture.

However, power and money are quite often necessary to create the sort of environment that, for instance, genius inventors need to invent stuff; so those people are going to spend a lot of time around the elites, and will take a lot of their money as the opportunity presents. If the elite group in question contains people who really "get" what the genius inventors are doing, those particular elites will naturally go out of their way to show up at talks the working geniuses are giving. So I don't think Steve Jurvetson calling out Eric Drexler is a good example of a VC going to transhumanist conferences, but rather of a specific subtype of VC who goes out of his way to find people like Eric Drexler.

Such VCs aren't representative of VCs in general, but you, personally, would tend to run into a lot of people like them, because you, too, go out of your way to find people like Eric Drexler.

It's not hard to imagine that all the power elite people you mention were so much more charismatic than you that you "couldn't discriminate more than one level above" your own charisma. That halo effect that Michael Vassar mentioned. Not that they weren't smart and competent but, charisma can be used to make you seem more smart and competent in the same way that I see you as more charismatic than you really are because you are smarter and more competent than me.

You might well have been able to make the same observation about the senior planning officials in Gosplan and the Soviet industrial ministries. The problem is that nobody's "smart" and "competent" enough to administer a planned economy, and that's what a corporation is. The question isn't how "smart" or "competent" senior management is, but the nature of the information they act on given Hayekian information problems. More specifically, are they (as Kenneth Boulding said) in progressively more tangential contact with reality, the further up the hierarchy they are, until the guy at the top of the pyramid is living in a completely imaginary world based on information filtered from below. This is how hierarchies work--it's what R.A. Wilson called the Snafu Principle.

We have such large organizations, so isolated from genuine market data, that nobody's smart enough to run them. The solution is not to find the smartest guy you can to make CEO and put in charge of an enormous hierarchy. It's to reshape organizations so that 1) information problems are reduced by putting authority in the hands of people who are dealing directly with the situation, and 2) agency problems are reduced by eliminating the conflict of interest involved in hierarchy as a result of the ability to externalize the costs of decisions on those below.

Boris, yes, Paul Graham was one of my sources and seemed trustworthy. That's why I was surprised not to see any of what he described. Maybe I'm just seeing a cherry-picked selection of venture capitalists? Maybe they turn evil when the moon comes out and the term sheets are being negotiated? I really don't know.

Devin, as awful as democracy is, I don't see any reason to doubt the verdict of history that monarchy is worse. Important question: Are Congressional staff brighter than the actual Congresspeople?

Christopher, the objection is not that reporters make out the power elites to be stupid, but that they don't particularly emphasize their intelligence, even though this is one of the most important facts about them.

I'm curious: what would you say about the writings of Paul Graham on this topic? It seems like he has a lot of evidence and experience in the field and his opinion differs drastically from yours. http://www.paulgraham.com/venturecapital.html

This is very true. When I first interned Congress, I was amazed that everyone who worked there was several cuts above the median in intelligence. Plus, most people were genuinely dedicated and well intentioned. Even many of the lobbyists honestly believed that they were just trying to ensure that the business they worked for got its fair share.

The reason things go wrong, I believe, is the process of Adaptive Fiction. ( see http://unqualified-reservations.blogspot.com/2007/07/democracy-as-adaptive-fiction.html ). Let's say you have 100 very smart people. 99 out of a hundred of these people do not believe that giving more money and power to Washington will make the world a better place. One person honestly does believe it. Because of this, he ends up running for office, while the others end up in science or business. Since this person is smart and sincere, he wins, and now is in Congress. Now as Congressman, he votes the government more power. As part of this funding government, there is more money for schools. These schools in turn teach people that government is good and great. Repeat this cycle enough times, and you have systematic delusion across the country and all throughout government.

"This, I suspect, is one of those truths so horrible that you can't talk about it in public."

Charles Murray talked about in "The Bell Curve."

Einstein was a deist, etc.
Except that he wasn't -- 'deist' is a well-defined concept that is not compatible with Einstein's avowed beliefs.

Einstein was an atheist who liked to personify the ultimate nature of reality as a way of blending in with the societies in which he existed.

Christopher, I was surprised by the lack of backlash to this post; I expected much more. In fact, I really don't understand why the Jaynes post got backlash and this one didn't. Maybe all the people I warned not to read it, really didn't. So maybe this was all known to everyone except me.

The men at the power-elite gathering were also noticeably taller than average, so unless that actually correlates to intelligence, there are forces besides pure competence at work.

so unless [height] actually correlates to intelligence

It does. Possibly due to larger brain size and possibly due to better nutrition. Of course, the cause could go both ways: you could be seeing higher intelligence because taller people are viewed as better leaders, and intelligence correlates with height. In reality, the situation is probably more complex than that, and the actual causes of success (as opposed to the correlates) are not well established.

But given that the correlation is only 0.2, Eliezer's probably right that there are other advantages.

First a comment on a small, specific point you made: I have met a large number of VC's during the last 11 years, and in terms of intelligence and insight I really found them to be all over the map. Some brilliant, wide-ranging thinkers ... some narrow-minded morons. Hard to generalize.

Regarding happiness, if you're not familiar with it you might want to look at the work on flow and optimal experience:

http://www.amazon.com/Flow-Psychology-Experience-Mihaly-Csikszentmihalyi/dp/0060920432

which is likely relevant to why many successful CEO's would habitually feel happy...

Also, there have been many psychological studies of the impact of wealth on happiness, and one result I remember is that, once a basic level of wealth that avoids profound physical discomfort is achieved, the main impact of wealth on happiness is to DECREASE UNHAPPINESS but not to INCREASE HAPPINESS. (Yes, I know this wording is imprecise ... but it is precise in the relevant research papers, which I don't have at my fingertips right now...)

That is, having a lot of $$ decreases the amount of petty annoyance in your life. But it doesn't provide higher highs, or significantly increase your overall life-satisfaction. But, having so little $$ that you're hungry, or cold, etc., obviously does decrease your overall life-satisfaction.

-- Ben G


Have you ever met and identified a sociopath before? Until you've seen one in action and understand some of their tricks, they can appear to be incredibly smart and effective.

Devin, as awful as democracy is, I don't see any reason to doubt the verdict of history that monarchy is worse. Important question: Are Congressional staff brighter than the actual Congresspeople?

Are you aware that the victors write the history? Pick up a Chinese history book and you'll read about what a swell guy Mao was. Sure some things he did were a bit suboptimal, but in general, he was a great man that was a blessing for China. The United States has a $1 trillion state education system. What kind of myths has it have filled your head with?

If you actually read the book of someone who lived through the transition of monarchy to democracy, you'll find a quite different story. Read The World of Yesterday by Stefan Zweig. He laments the destructive force of universal suffrage, and how it led to polarization, racism, and war. Or consider Metternich, the foremost statesman of the early 1800's. Metternich intentionally kept the lid on democracy because he believed that it would lead to rabid German nationalism. Was he right or was he right? And if you study the effects of German universal suffrage in 1871, you can trace out the Blue-Green polarization that led to increasing anti-semitism.

Are Congressional staff brighter than the actual Congresspeople?

Yes, they usually are. And in general, the more isolated from the voters a position is, the more competent and trustworthy it is. For instance, I would trust the Joint Chiefs of Staff decision to go to war far more than I'd trust an elected president. I trust Bernanke more than Paulson more than Congress. If you look at the worst wars in history, you find the masses are usually more jingoistic than the leaders. For example, at the onset of World War I, the monarchs were the least willing to go to war. The politicians were much more willing, the newspapers were all like FoxNews on steroids, and the people were marching in the streets in chanting for war.

You've only talked about transitions (which are always bloody) and fallout from transitions , while people adjust. I'd rather hear about the actual differences in living conditions under the different political systems once they've stabilised.

I don't know enough about it, but it might be interesting to compare living conditions of Rome under democratic rule vs during the years of empire.

Rome was never a democracy in anything like the sense we understand it (only a tiny proportion of the population could vote, certain level of wealth was required to run for office etc.). But in general democracies seem to have higher living standards, While obviously its difficult to control for other factors, natural experiments might be different states in south america and africa which moved to democracy at different times.

Robin makes a good point. Whatever your opinion of Brooks and Brooks's vision for AI, the fact remains that the man has been incredibly productive. His position at the top of the AI food chain is not due to his incredible personal magnetism, or not principally. It's due to the fact that he builds real things, that you can pick up and hold in your hands, that do real things, that you can measure. It's easy enough to dismiss his robots, and his vision of intelligence, and his vision for how to get to "real" intelligence, as silly, and counterintuitive.

But of course Brooks has walked the walk. Repeatedly. Which is why people listen to Brooks, and why he is an authority. He produces. Don't think an embodied agent running some flavor of subsumption architecture is a good base for intelligence? All you have to do is build something that works better. Armchair quarterbacking in the sciences is about the most useless thing imaginable, and opining about how to build AI, without taking even the most trivial steps toward producing something real, is somewhere between misguided and masturbatory.

BTW, how does this insight change your view about Aristocracy/Monarchy versus Democracy as a form of government?

It wouldn't change mine much. The point is that all these people were pretty much selected, and not born to it.

Now, it does make me wonder about the Chinese mandarins...

Reading this I felt so... excited. This is genuinely good news. Like the childhood you, most of my experience of life consists of not actually meeting people and doing things, but of reading books and what have you. As a result, I had deliberately killed my sense of ambition, because on some level I equated success with unhappiness. The idea that smarter, more successful people are happier as well... that changes things.

Feels like there's a lot of stuff muddled up in this discussion.

For what the anecdote is worth, I went to Harvard Business School, a self-styled pantheon for the business elite.

The average person was:
- top decile intellect (though probably not higher)
- top decile emotional intelligence (broadly construed - socially aware, self-aware, persuasion skills, etc.)
- highly conscientious / motivated

Few were truly brilliant intellectually. Few were academically distinguished (plenty of good ivy league degrees, but very few brilliant mathematical minds, etc.).

A good number will be at Davos in 20 years time.

Performance beyond a certain level in the vast majority of fields (and business is certainly one of them) is principally a function of having no cognitive and personal qualities which fall below a (high, but not insanely high) hygene threshold -- and then multiplied by determination, of course.

Conscientiousness, in fact, is the best single stable predictor of job success for complex jobs (well established in personality psychometrics).

Very high intelligence actually negatively correlates with career success (Kotter), probably because smart people enjoy solving problems, rather than making money selling things -- which outside of quant trading, show business and sport is really the only way of being really successful.

There are some extremely intelligent people in business (by which I mean high IQ, not just wise or experienced), but you tend to find them in the corners of the business landscape with the richest intellectual pastures: some areas of law, venture capital, some cutting edge technology fields.

Steve Ballmer - for instance - might deafen you, but he would not dazzle you.

There are some extremely intelligent people in business (by which I mean high IQ, not just wise or experienced), but you tend to find them in the corners of the business landscape [...] Steve Ballmer - for instance - might deafen you, but he would not dazzle you.

No comment on his ability to dazzle, but Ballmer certainly does have a high IQ:

In high school, Ballmer scored a 1600 on his SATs and was a National Merit Scholar.

As a college sophomore, Ballmer finished in the top 100 in the prestigious Putnam national math competition, and ended up graduating magna cum laude in applied math and economics.

http://www.thecrimson.com/article/2002/6/4/personable-ballmer-leads-college-extracurriculars-microsoft/

Isn't there quite a bit of selection bias involved here? Perhaps some level of native intelligence is required to be in the elite (or strongly correlated to it at least) but don't you have to see how many equally intelligent people are toiling away outside the elite to determine if greater intelligence is sufficient? Wouldn't Bayes be a little disappointed with thispost? Also, you observe that people who are in the elite seem happier and more fulfilled than the average. That doesn't really seem that surprising to me -- after all they are already pretty far up Maslow's pyramid by the time you can identify them as elite (although I have met a few billionaires and many millionaires who don't seem particularly happy or fulfilled with their lives).

WRT VCs: amongst VCs, Jurvetson is clearly outside the norms, given how quickly he became a partner at a major firm. Better study more typical VCs to draw your conclusion about the class.

"This, I suspect, is one of those truths so horrible that you can't talk about it in public."

Charles Murray talked about in "The Bell Curve." And Ayn Rand wrote about it repeatedly.

There's "smart" and then there's "smart enough for your cognitive mechanisms to reliably decide to sign up for cryonics".
And then there's "smart enough not to use a terribly controversial and questionable position, which has repeatedly been the basis for criticism of my judgment, as an example of an extremely intelligent decision".

Does the unusual tenor of this post have anything to do with the upcoming Singularity Summit and its potential for fund-raising?

Eliezer, thanks for sharpening the point for me. Still, I'm used to your posts catalyzing so much insight that this one continues to strike me as remarkably banal, even naive. I'm probably missing something. Do all that many educated people really think that CEOs of mid-to-upper-level corporations and hedge-fund managers are not generally more intelligent than average?

Equally importantly, the question that this point raises but doesn't address at all: do you think that intelligence dominates driving force behind ascension through corporate hierarchies? My instinct is to think that you've got to be smart to succeed, but you've also got to have a certain kind of power-loving personality, and be charismatic, and have at least a few other qualities.

To put it another way, when you say, "There's another world out there, richer in more than money," that's obviously true; but isn't it just as obvious that plenty of people with that kind of riches aren't in business, government, or the power-focused professions?

You didn't see any of the behavior that Paul Graham described because he is describing the venture capitalist/entrepreneur/investment interface while you are describing the venture capitalist/conference/marketing interface. Being sparkly in conversation doesn't produce much work.

It's true that we don't like to think people better-off than us might be better than us. But two caveats:

  1. Just because the cream is concentrated at the top, doesn't mean that most of the cream (or the best cream) is at the top.

  2. Causation probably runs both ways on this one. There is a lot of evidence that richer and more-respected people are happier and healthier. Various explanations have been tried to explain this, including the explanation that health causes career success. That explanation turned out to have serious problems, although I can't now remember what they are, other than that I heard them summarized in a talk from a SAGE (anti-aging) conference circa 2004, which I can no longer find any information via Google on because there is now a different organization called SAGE that holds conferences on LGBT aging that totally dominates Google search results.

I think that, if we could measure the degree to which a culture is able to promote based on merit, it would turn out to be a powerful economic indicator - particularly for knowledge-based economies.

Not hard to find SAGE; 'SAGE anti-aging conference' combined with restricting Google search to 2003-2005 turned up a citation to its website as the fourth hit: http://www.sagecrossroads.net

Eliezer, perhaps you were expecting them to seem like A-holes or snobs. That is not the case. They are indeed somewhat smarter than average. They also tend to be very charismatic or "shiny" which makes them seem smarter still. That doesn't necessarily mean they are smart enough or motivated to fix the problems of the world.

Perhaps there are better models of the world than the Approval/Disapproval of Eletes dichotomy.

Something to bear in mind. There exists a feedback loop whereby social status and the approval of others, (whether justified or not)increases confidence and self-assurance driving that social status higher still.

It seems quite possible that elites are "sparkly" because of their social status rather than the other way around.

[What makes an executive might be] "functioning without recourse"—living without any level above you to take over if you falter, or even to tell you if you're getting it wrong

Alternatively, successful executives might be defined by "always having recourses" -- a large-enough social network, blame-shifting ability, and general competence.