Labels can be highly beneficial; for example labels that act as handles leading to greater understanding about the world. An understanding of photosynthesis, for example, requires labels to detail and describe complex processes.
That is the benefit of labels. The bale of labels is that they can lead to tyrannical preconceptions that in automated fashion give rise to the semblance of knowledge without the substance. Objective and disciplined exploration is discarded for the satisfaction and certainty of smug ignorance.
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