Intelligence vs. Smarts
The Morgan Housel Podcast
Morgan Housel
4.9 • 1.1K Ratings
🗓️ 22 August 2023
⏱️ 15 minutes
🧾️ Download transcript
Summary
This episode is about the difference between intelligence and smarts, and why one is valued more than the other despite being less useful in the world.
The core here is realizing that people are not spreadsheets. They are emotional, hormonal, misinformed, status-seeking, insecure creatures trying their best to make it through the day. So if you have to choose between understanding how the world should work in theory vs. how it actually works in practice, lean towards the latter. It’s like historian Will Durant once said: “Logic is an invention of man and may be ignored by the universe.” That is so smart.
Transcript
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| 0:00.0 | This week I want to talk about a really important distinction to make in life. It's just the idea that there are some people who are |
| 0:15.9 | intelligent, but they don't have a lick of smarts in them. And their ability to succeed in the world might surprise you on the downside. |
| 0:25.0 | And then there are other people who are not very intelligent, but they gush smarts |
| 0:32.0 | and their potential will surprise you on the upside. but they gush smarts. |
| 0:32.6 | And their potential will surprise you on the upside. |
| 0:36.3 | On rare occasions you meet people who are both intelligent and smart, |
| 0:40.3 | and they run laps around everybody. |
| 0:43.0 | It's just this idea that there is a difference between intelligence and smart. |
| 0:48.0 | And I would define it like this. |
| 0:51.0 | Intelligent people understand technical details, but smart people understand emotional details. |
| 0:58.0 | Maybe another way to define it is this. |
| 1:02.0 | People who are intelligent usually have a good memory, they're good |
| 1:06.9 | with logic, they're good with mass skills, their test-taking ability, they're good at |
| 1:11.2 | following rules, that sort of thing. |
| 1:14.0 | Smart people on the other hand, it's a very different set of skills. |
| 1:18.0 | They tend to have a high degree of empathy, |
| 1:21.0 | bullshit detection, organization, communication skills, persuasion, social awareness, |
| 1:28.6 | understanding the consequences of their actions, that's what smart people tend to have. It's very different than |
| 1:34.4 | intelligence as we typically measure it. Both intelligence and smarts are really |
| 1:40.5 | important, of course. But there's a critical difference in how each of them are |
| 1:45.3 | valued by the world. Schools are very good at teaching and measuring intelligence. So that's what people tend to value and aspire to. |
| 1:54.7 | But in almost any field that you look at, Smarts is what gets rewarded long term. |
... |
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