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Parsons produced a general theoretical system for the analysis of society, which he called 'theory of action' based on the methodological and epistemological principle of "analytical realism" and on the ontological assumption of "voluntaristic action." Parsons concept of analytical realism can be regarded as a kind of compromise between nominalist and realist views on the nature of reality and human knowledge. Parsons assesses that we (as scientists and humans) relate to objective reality but only through a particular encounter of such reality, and that our general intellectual understanding is only feasible through conceptual schemes and theories. Our interaction with objective reality on an intellectual level should always be understood as an approach. Parsons often explicated the meaning of analytical realism by quoting a statement by L.J. Henderson: "A fact is a statement about experience in terms of a conceptual scheme."
Generally, Parsons maintained that his inspiration regarding analytical realism had been Lawrence Joseph Henderson and A.N. Whitehead although it is possible the idea originated much earlier. It is important in this regard that Parsons' "analytical realism" insist on the reference to an objective reality since Parsons at several occasions highlighted that his concept of "analytical realism" was importantly different from the "fictionalism" of Hans Vaihiger (Hans Vaihinger). As Parsons specify this: "We must start with the assertion that all knowledge which purports to be valid in anything like the scientific sense presumes both the reality of object known and of a knower. I think we can go beyond that and say that there must be a community of knowers who are able to communicate with each other. Without such a presupposition it would seem difficult to avoid the pitfall of solipsism. The so-called natural sciences do not, however, impute the "status of knowing subjects" to the objects with which they deal."
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