LW4EA: When Money Is Abundant, Knowledge Is The Real Wealth

This is part of LessWrong for EA, a LessWrong repost & low-commitment discussion group (inspired by this comment). Each week I will revive a highly upvoted, EA-relevant post from the LessWrong Archives, more or less at random

Excerpt from the post:

By and large, the President of the United States can order people to do things, and they will do those things. POTUS is often considered the most powerful person in the world. And yet, the president cannot order a virus to stop replicating. The president cannot order GDP to increase. The president cannot order world peace.
Are there orders the president could give which would result in world peace, or increasing GDP, or the end of a virus? Probably, yes. Any of these could likely even be done with relatively little opportunity cost. Yet no president in history has known which orders will efficiently achieve these objectives. There are probably some people in the world who know which orders would efficiently increase GDP, but the president cannot distinguish them from the millions of people who claim to know (and may even believe it themselves) but are wrong.
Last I heard, Jeff Bezos was the official richest man in the world. He can buy basically anything money can buy. But he can’t buy a cure for cancer. Is there some way he could spend a billion dollars to cure cancer in five years? Probably, yes. But Jeff Bezos does not know how to do that. Even if someone somewhere in the world does know how to turn a billion dollars into a cancer cure in five years, Jeff Bezos cannot distinguish that person from the thousands of other people who claim to know (and may even believe it themselves) but are wrong.
When non-experts cannot distinguish true expertise from noise, money cannot buy expertise. Knowledge cannot be outsourced; we must understand things ourselves. (Full Post on LW)

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