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Reality in everyday usage means "everything that exists". The term reality, in its widest sense, includes everything that is, whether it is observable, accessible or understandable by science, philosophy, or any other system of analysis. Reality in this sense may include both being and nothingness, whereas existence is often restricted to being (compare with nature).
In the strict sense of Western philosophy, there are levels or gradation to the nature and conception of reality. These levels include, from the most subjective to the most rigorous: phenomenological reality, truth, fact, and axiom.
Phenomenological reality
On a much broader and more subjective level, the private experiences, curiosity, inquiry, and selectivity involved in the personal interpretation of an event shapes reality as seen by one and only one individual and hence is called phenomenological. This form of reality might be common to others as well, but at times could also be so unique to oneself as to be never experienced or agreed upon by any one else. Much of the spiritual experience of an individual occurs on this level of reality.
Truth
When two or more individuals agree upon the interpretation and experience of a particular event, a consensus about an event and its experience begins to be formed. This being common to a few individuals or a larger group, then becomes the 'truth' as seen and agreed upon by a certain set of people. Thus one particular group may have a certain set of agreed truths, while another group might have a different set of truths that have reached consensus. This lets different communities and societies have varied and extremely different notions of reality and truth of the external world. The religion and beliefs of people or communities are a fine example of this level of reality. This is well expressed in the famous quote by Henry Thoreau, "It takes two to speak the truth — one to speak and another to hear." However, humans are fallible and are limited to individual experience. Truth cannot simply be considered truth if one speaks and another hears because individual bias and fallibility take away any assertion that the idea of truth, itself, exists.
Other views of truth assert that truth is that which is considered to be the supreme reality and to have the ultimate meaning and value of existence, regardless of subjective inference. Truth can not merely be discerned by deductive reasoning but can only be more deeply understood by inductive study and skepticism.
Fact
A fact or factual entity is a phenomenon that is perceived as an elemental principle. It is rarely one that could be subject to personal interpretation. Instead it is most often the observed phenomena of the natural world. The proposition 'the sun rises in the east', is a fact. It is a fact for people belonging to any group or nationality regardless of which language they speak or which part of the hemisphere they come from. The Galilean proposition in support of the Copernican theory, that the sun is the centre of the solar system is one that states the fact of the natural world. However during his lifetime Galileo was ridiculed for that factual proposition, because far too few people had a consensus about it in order to accept it as a truth. Fewer propositions are factual in content in the world, as compared to the many truths shared by various communities, which are also fewer to the innumerable individual phenomenological realities. Much of scientific exploration, experimentation, interpretation and analysis is done on this level.
This view of reality is well expressed by Philip K. Dick's statement that "Reality is that which, when you stop believing in it, doesn't go away."
What reality might not be
"Reality", the concept, is contrasted with a wide variety of other concepts, largely depending upon the intellectual discipline. It can help understand what we mean by "reality" to note what we say is not real but usualy if there is no original and related proofs it isn't reality.
In philosophy, reality is contrasted with nonexistence (penguins do exist; so they are real) and mere possibility (a mountain made of gold is merely possible, but is not real) unless they are discovered. Sometimes philosophers speak as though reality is contrasted with existence itself, though ordinary language and many other philosophers would treat these as synonyms. They have in mind the notion that there is a kind of reality — a mental or intensional reality, perhaps — that imaginary objects, such as the aforementioned golden mountain, have. Alexius Meinong is famous, or infamous, for holding that such things have so-called subsistence, and thus a kind of reality, even while they do not actually exist. Most philosophers find the very notion of "subsistence" mysterious and unnecessary, and one of the shibboleths and starting points of 20th century analytic philosophy has been the forceful rejection of the notion of subsistence — of "real" but nonexistent objects.
It is worth saying at this point that many philosophers are not content with saying merely what reality is not — some of them have positive theories of what broad categories of objects are real, in addition. See ontology as well as philosophical realism; these topics are also briefly treated below.
In ethics, political theory, and the arts, reality is often contrasted with what is ideal.
One of the fundamental issues in ethics is called the is-ought problem, and it can be formulated as follows: "Given our knowledge of the way the world is, how can we know the way the world ought to be?" Most ethical views hold that the world we live in (the real world) is not ideal — and, as such, there is room for improvement.
Political theory is often an extension of the above. Few (if any) political views hold that the world we live in is the best possible world. Most political views argue that the world — or, more specifically, present-day society — could be improved in one way or another, and propose various means to achieve such an improvement.
In the arts there was a broad movement beginning in the 19th century, realism (which led to naturalism), which sought to portray characters, scenes, and so forth, realistically. This was in contrast and reaction to romanticism, which portrayed their subjects idealistically. Commentary about these artistic movements is sometimes put in terms of the contrast between the real and the ideal: on the one hand, the average, ordinary, and natural, and on the other, the superlative, extraordinary, improbable, and sometimes even supernatural. Obviously, when speaking in this sense, "real" (or "realistic") does not have the same meaning as it does when, for example, a philosopher uses the term to distinguish, simply, what exists from what does not exist.
In the arts, and also in ordinary life, the notion of reality (or realism) is also often contrasted with illusion. A painting that precisely indicates the visually-appearing shape of a depicted object is said to be realistic in that respect; one that distorts features, as Pablo Picasso's paintings are famous for doing, are said to be unrealistic, and thus some observers will say, but with questionable grammatical correctness, that they are "not real." But there are also tendencies in the visual arts toward so-called realism and more recently photorealism that invite a different sort of contrast with the real. Trompe-l'œil (French, "fool the eye") paintings render their subjects so "realistically" that the casual observer might temporarily be deceived into thinking that he is seeing something, indeed, real — but in fact, it is merely an illusion, and an intentional one at that.
In psychiatry, reality, or rather, the idea of being in touch with reality is integral to the notion of schizophrenia, since it has often been defined in part by reference to being "out of touch" with reality. The schizophrenic is said to have hallucinations and delusions which concern people and events that are not real. However, there is controversy over what is considered out of touch with reality, particularly due to the noticeable comparison of the process of forcefully instituting individuals for expressing their beliefs in society to reality enforcement. The practice's possible covert use as a political tool can perhaps be illustrated by the 18th century psychiatric sentences in the U.S. of black slaves for 'crazily' attempting to escape. See also anti-psychiatry and one of its prominent figures, the psychiatrist Thomas Szasz.
In each of these cases, discussions of reality, or what counts as "real", take on quite different casts; indeed, what we say about reality often depends on what we want to say it is not.