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As I understood it, high priests and men in privileged positions, who were generally more intelligent, had selective breeding rights with more women, and thus they propagated their more intelligent offspring, whereas the dummies with no status hit a genetic dead-end. Some sort of cultural eugenics or systemic survival of the fittest.
I'm sure there's many reasons for the Jewish/IQ correlation, but that is argued to be one of them.
Most ashkenazis descend from merchants who traveled to europe, middle-eastern jews are average.