The Wealth of Words
“Why should vocabulary size be related to achieved intelligence and real-world competence?... Words are fantastically effective chunking devices. Suppose you put a single item into your working memory—say, “Pasteur.” So long as you hold in your long-term memory a lot of associations with that name, you don’t need to dredge them up and try to cram them into your working memory. The name serves as a brief proxy for whatever aspects will turn out to be needed to cope with your problem. The more readily available such proxies are for you, the better you will be at dealing with various problems. Extend this example to whole spheres of knowledge and experience, and you’ll realize that a large vocabulary is a powerful coping device that enhances one’s general cognitive ability.”
E.D. Hirsch, "A Wealth of Words" City Journal - http://bit.ly/VsmTgn