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What is the meaning of "short circuits" as a verb in the following sentence:

Technology short circuits this thinking by making the problems obsolete.

Is this use formal and where it can be used?

Note: This post is based on a specific context and is not a general answer.

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I believe it means "cuts off", or "removes the need for", i.e. technology means that we don't have to think in such a way as often.

I regard it as rather informal. In polite speech, I would simply opt for the slightly long-winded "removes/reduces the need for".

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