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I can't understand the meaning of "someone reduces what they understand to be reality." in the below passage. Is it possible to think of 'what they understand to be reality' as 'better(or possible) way of seeing or doing something'? Also, I think that if someone reduces what they understand to be reality, then they can get more objective perspectives. Am I wrong?

Many people out there think that they've got the answer, that their approach is the best, that they have the truth. You've met some of them, yes? They can't all be 100 percent right, of course, because they'd contradict each other. Yet the opposite doesn't make sense either: they can't all be 100 percent wrong all the time! Instead, everyone comes from a perspective, or point of view, which, by its very nature, is limited and partial. And the more perspectives you take into account, the better you can understand something, whether it be yourself, a relationship with another person, or a situation in the world. In contrast, the fewer perspectives you consider, the more susceptible you are to fallacies or misconceptions resulting from a limited view. A fallacy occurs when someone reduces what they understand to be "reality" by ignoring important perspectives, thereby arriving at misleading conclusions.

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You are asking what the following phrase means:

"A fallacy occurs when someone reduces what they understand to be reality by ignoring important perspectives, thereby arriving at misleading conclusions."

The meaning and intention seem to be somewhat clear, even if the words are jumbled.

How about this rearrangement?

"A fallacy occurs when someone reduces (their definition of) reality, to be only what they themselves understand, by ignoring other important perspectives, thereby arriving at misleading conclusions.".

Or, the original phrase could even be kept as-is, just by omitting the words in parentheses:

"A fallacy occurs when someone reduces (what they understand to be) reality by ignoring important perspectives, thereby arriving at misleading conclusions."

In other words:
- You have a view of reality.
- It can be expanded, by adding more perspectives.
- It would be reduced, if you ignored other perspectives.

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