Are you sure they mean it to be flattering? I have no idea why folks at your school think that way, but I sure wish I could convince my boss that chess strength should be the primary factor in determining who should get raises and bonuses. :)
Why?
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This brings up the question of why Americans (I think it is more true of Americans) somehow hold high levels of intelligence to be undesirable. This strikes me as a truism regardless of the age group. Young people think it means you are not cool. Older people think it means you lack "common sense." Ironically, most people want to think that their own children are brilliant!
I do think that many people are intellectually lazy, and chess is a recreation that requires you to use your brain. This may be part of the answer to your original question.
Recently I have noticed that anyone that i tell that i play chess for a hobby Immediately assumes that i am some sort of a super genius. This really disturbs me i do not know why, because them saying that should flatter me but it does not. i am the president of the chess club at my school, and i am far from a super genius. This stereo type is flattering, but i just wonder why people Who do not play chess think everyone who does must be smart?