A thing I believe with medium confidence: One reason many institutions today are weaker than counterparts were generations ago was that allocation of smart people got more efficient for certain definitions of efficient, and institutions no longer benefit from so much free lunch.
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(2) When spending time with people in the relevant domains, am often struck (in a positive way) by their quality. Larger bureaucratic/institutional dynamics seem to be significant forces.
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But whether what you describe is 20% or 80% of the phenomenon (and what exactly it is that drives that allocation) is something I often wonder about.
End of conversation
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