The only thing I would really disagree with here is the idea that “reality” is completely without distinctions, like “tapioca” to use C.S. Lewis’ analogy. So, we are fully human. That doesn’t mean we aren’t connected in a deep way to everything else. The article is right that we are indeed unconscious of our true selves, and on that basis make mistakes and misinterpret reality.
As for self-esteem, I think the need for it comes from a lack of true self love and self understanding, together with the knowledge that God loves us and is love.
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