It can be hard to square the fact that intelligence and education are totally unrelated to each other. Ancient humans certainly knew less than we do now, but they were more or less just as intelligent as modern humans.
We can see from archaeology that ancient humans had language, sophisticated religions, and complex and vast societies. That's not something you can really accomplish with a significantly different baseline intelligence.
We know a lot more now and have a much more complicated global society, but mainly because we have machines to do a lot of the thinking and management for us. We're still just as intelligent as we always were, we just have tools to multiply our efforts now.
This is the nub of it - we're better at one very particular thing. I think I'm gonna get crucified if I really go into arguing against abstract reasoning as the baseline for understanding the world on this site, but without trying to defend that particular assertion I'd just make a note to say that what IQ tests are testing is a very specific type of thinking and not actually generalized intelligence, which is a very broad topic.
I am, and I say this without ego, a very smart person, and there are situations I absolutely excel - I can synthesize new information very quickly, I can draw correlations and relationships and principles from sparse data, I recognize patterns and build and dissect systems easily. Abstract reasoning is my wheelhouse, but I cannot do the things my friends can do with the ease they do them - I can get there eventually, in the same way that they can get to where I am eventually, but the things they do very clearly require a different type of intelligence than my variety.
A large part of the Flynn effect may be due to reductions in environmental pollutants, which would mean it would be a reversal of the effect of the industrial revolution. Or it may have been due to people being much more used to taking tests. Or it may be due to nutrition. It is unlikely to be due to modern education forcing people to "learn to reason abstractly from an early age" because schools don't require students to learn to reason abstractly from an early age.
Yes, perhaps both Homer (the author of the world-famous literary classic the Iliad and the Odyssey) and a hypothetical modern Homer (d'oh!) believed in a flat Earth. The modern Homer failed to understand or rejected the education he was offered, while a hypothetical modern observer, who feels more intelligent than the flat-earther, understood and accepted it. But that does not mean that the ancient Homer was of similar intelligence!
Specifically, his notes on consumption / full employment are refreshing - it never sits right with me that the goal of economic policy at a high level is so often at odds with doing things in a "smart" way (measuring projects in jobs created, for example).