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There is no definite answer why our brain is shrinking, and whether it makes us dumber, smarter or does not change our intelligence. Here is the short answer with hypotheses, here is the long one.

An interesting study (see the second link, page 2) suggests that "As complex societies emerged, the brain became smaller because people did not have to be as smart to stay alive." Others explain this in a way that we just became more efficient in using our brain: "a brain that yields the most intelligence for the least energy." But it seems to me that these two views are compatible.

On the other hand, domestic animals have smaller brains than their wild counterparts, but they don't seem to have less intelligence. They are just better at different things. So we really don't know whether we are losing intelligence or not. But if it is really politics and social interactions that play a key role in getting us smarter, then we can stop worrying (at least for the nearest future).

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