This
Nobel prize winning study was quoted on this forum before (thanks MPOE-PR) and describes in detail the
Dunninger-Kruger effect.
It concludes that individuals who are incompetent in specific fields of knowledge are less able to recognize competence in other individuals. In other words, the quicker you realize that someone is smarter than you, the smarter you yourself are.
It shows that incompetent individuals in general overestimate their abilities compared to their peers and competent individuals in general underestimate themselves.
The study also points out that incompetent individuals are less able to improve their own competence and correct this self-overestimation by learning from their (more competent) peers.
Another, unrelated, recent study at Stanford University mentions that
humanity as a whole is getting dumber.
Some interesting points to consider, especially when combining these studies, because it may explain the causes for the effects that affect all of us in many aspects of our lives.
Let me illustrate with an example: In a democracy we depend upon the competence of society as a whole to make the right decisions to solve our problems. If too many individuals in society are not aware of their own incompetence and fail to correct their mistaken views by learning from competent individuals, they tend to make wrong decisions over and over again and problems will become worse. And if society as a whole is getting dumber (= less competent) this effect will only increase. That paints a very dark picture for the world.
I would like to hear your opinions and interpretations and consenting or disagreeing examples of this effect:
1) In your personal life and at work
2) On this forum
3) In politics and economics