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Is striving to be completely honest in all situations too idealistic?
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Yes. If it's to avoid offending someone who has the power and inclination to make your life miserable, it's usually less stressful to lie than accept the consequences of being truthful. Also, a little white lie can be more comfortable to deliver when the truth is unflattering, and with no added stress/risk if you'll never see the person again. For example, if a stranger were hitting on me (hey, it could happen...in theory) I'd much rather say "sorry, I have a girlfriend" than "sorry, I don't find you attractive."