The Lanier Effect

"Collectives can be just as stupid as any individual, and in important cases, stupider. The interesting question is whether it's possible to map out where the one is smarter than the many.
There is a lot of history to this topic, and varied disciplines have lots to say. Here is a quick pass at where I think the boundary between effective collective thought and nonsense lies: The collective is more likely to be smart when it isn't defining its own questions, when the goodness of an answer can be evaluated by a simple result (such as a single numeric value,) and when the information system which informs the collective is filtered by a quality control mechanism that relies on individuals to a high degree. Under those circumstances, a collective can be smarter than a person. Break any one of those conditions and the collective becomes unreliable or worse.
Meanwhile, an individual best achieves optimal stupidity on those rare occasions when one is both given substantial powers and insulated from the results of his or her actions.
If the above criteria have any merit, then there is an unfortunate convergence. The setup for the most stupid collective is also the setup for the most stupid individuals.

Every authentic example of collective intelligence that I am aware of also shows how that collective was guided or inspired by well-meaning individuals. These people focused the collective and in some cases also corrected for some of the common hive mind failure modes. The balancing of influence between people and collectives is the heart of the design of democracies, scientific communities, and many other long-standing projects. There's a lot of experience out there to work with. A few of these old ideas provide interesting new ways to approach the question of how to best use the hive mind."
-Jaron Lanier "Digital Maoism: The Hazards of the New On-Line Collectivism"