of course. Im usually much smarter than most of the people I work for. I work for asshole bosses all the time. I didnt say there were no exceptions to the rule. But, in general, if you are better, you either
A) make it show so you get that better job
B) leave and go somewhere that appreciates you.
In general speaking terms, the better you are in your job the more you get paid.
Thats why a Harvard degree is worth its weight in gold, or MIT, or GT, or Yale, etc.