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The daily view 6/5/2026: IQ, Berkeley math, Affordability, AI and Jobs, AI Bubble…

A new study from University of California faculty reveals severe math deficits among STEM applicants, prompting a demand to reinstate SAT requirements for admissions. The pushback against test-optional policies comes as professors report that students admitted without standardized scores lack the pre-calculus foundation needed for Berkeley-level coursework. The controversy highlights a growing divide between overprepared top students and underprepared peers, even at elite public universities.

read5 min publishedJun 5, 2026

Item 1: IQ and biases

This is addressed to the people who post about IQ asserting as well-known facts that IQ tests are culturally biased, or don't measure anything but how to take IQ tests, or can be coached, or are affected by socioeconomic status. The list seems endless.

I've got news for you.…

— Charles Murray (@charlesmurray)

[May 26, 2026]

IQ research is the most vetted of all of human psychology research, because of how much is at stake. Nothing has been more scrutinized than twin studies, or the link between IQ and “life outcomes”. This is why IQ research has withstood the replication crisis. Controlling for SES status, IQ varies enormously between individuals. At even the most expensive schools, there will be kids who are evidently way smarter than the rest, and those who still struggle.

Item #2: This went hugely viral: Citing ‘severe’ math deficits, UC faculty demand a return to SAT tests for STEM applicants.

Making the SATs optional will go down as the biggest blunger in education policy, worse than even the Covid school closures. But also, the UC schools are notoriously hard, especially UC Berkeley, a famously difficult school in its own right. Large class sizes, limited individualized support, impersonal bureaucratic campuses, grade deflation, “weed out” courses, and heavy workloads create a highly competitive “sink or swim” environment. Berkely’s difficulty is easily on par with MIT or Caltech, but minus any of the collaboration, small class sizes or other amenities typically found in small private universities. For these reasons, it wouldn’t surprise me if Berkely’s standards are higher compared to the typical university.

Being prepared for Berkeley-level math means having a strong command of pre-calculus, whereas other colleges have many remedial courses and lower expectations. As part of the theme of America becoming smarter and dumber at the the time, the top students are overprepared (near-perfect SATs, math competitions, coding etc.) relative to the bottom. I would have assumed that the difficulty of getting into Berkely would have precluded the unprepared or lazy from being accepted, even without the SATs, but apparently not.

Item #3: Affordability and sandwiches. Restaurants close due to surging meat prices. Why has dining out become so expensive?

Kevin O'Leary says most people waste $15,000 a year on stupid stuff like $5 coffees

"Stop buying coffee for five dollars and fifty cents"

"You go to work and you spend $15 bucks on a sandwich, what are you an idiot. It costs you 99 cents to make a sandwich at home and bring it…

[pic.twitter.com/0IMr2T94bo]— dank (@cptdankkk)

[May 20, 2026]

Prices will keep going up. The irony is that interventionist efforts to secure oil, as we saw with Iran and Afghanistan, only lead to higher oil and gasoline prices. Even with CPI between 2-3%/year, anything that is useful or important–such as rent, homes, insurance , healthcare, air travel, or tuition–will keep surging well in excess of the CPI. Your only options to hedge are to earn more money or buy stocks. The implicit messaging by policy makers is to put your money in the stock market. None of these things will get cheaper.

Once prices have been ratcheted under some pretext, and customers are habituated to paying more–whether for oil and airline tickets in 2026 or dining out during the 2022 post-Covid supply-chain shocks–prices seldom fall back to earlier levels. The higher prices simply become the new normal. Labor is often blamed for high prices for services, but everything else is more expensive too for businesses: insurance, advertising, leasing/rent, transportation and fuel have also increased significantly relative to inflation. Advertising is a huge one. It’s a major contributor to inflation in its own right.

Item #4: U.S. payrolls rose by 172,000 in May, much more than expected; unemployment at 4.3%. Just more evidence that I was right about AI not destroying jobs. But sure these same people will move the goalposts again and insist they will be right eventually, as they always do. If you predicted mass-AI joblessness, such as on a podcast, the intellectually honest thing to do would be to admit you were wrong, or at the very least acknowledge that the forecast is going wrong, not keep digging in. We know who you are and what you said. Just pretending to “forget” will not fool anyone with >100 IQ. For example, AI 2027. Now 6 months into 2026, and it’s evident that the date of the so-called “AI day of reckoning” will need to be pushed out again.

Item #5 Pundits sound the alarm about the upcoming IPOs of Space-X, Anthropic and Open AI are harbingers of a major market bubble.

These forecasts are useless. There is no possible actionable information. Let’s assume that you believe it’s a bubble: You can sell your stocks now, and you may be right–or more likely–the market will still keep going up, and you will be forced to buy back in at a higher price. The media made this same prediction in 2012 leading up to and during Facebook’s IPO, and were massively wrong then. For example, from * CNET*, “How Facebook’s Zucked-up IPO just killed the tech bubble.” And from

, “Facebook’s IPO and the new tech bubble”.

The GuardianItem #6: From BBC: “Trump meet AI leaders to discuss US investment in their companies,” and “Trump Announces $700 Million in Funds Meant to Boost Coal Industry”.

So this means investments/handouts for:

AI companies

Semiconductors

Quantum computing

Coal

Metals

Here is what I said 2 days ago: I was right again…Everything getting bailouts and handouts except Bitcoin. Bitcoin donors, who were among Trump’s biggest supporters in 2024, got nothing. Here is what I wrote on October 28, 2025,

When I call myself the greatest forecaster, it’s not cap. It’s all backed by results and evidence and transparent. Some of the predictions are very specific or contradictory, such as predicting that Bitcoin falls and stocks go up, or high oil prices not hurting the US economy. I had to not only predict that Trump would give handouts for lots of companies and sectors, but ALSO exclude crypto/Bitcoin. Everyone would have assumed crypto donors, being that they supported Trump so avowedly in 2024 would be first in line, but zip…nothing. Who else but the greatest forecaster could have seen this? No existing framework or worldview of “power dynamics” could have predicted this, so I had to create my own. And then also right about the strait of Hurmuz traffic still being below normal, so I am profiting more on Polymarket this week on that.

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