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1 This is a passing thrust at the Ideal theory. "Absolute knowledge" (the faculty of knowledge) will be a mere potentiality, and therefore substantially posterior to its actualization in particular instances.
2 The argument is presumably as follows (the fallacy, as pointed out by Bonitz, is indicated in parenthesis): That which has a separate substantial existence is actuality. Actuality is prior (substantially) to potentiality. Potentiality is prior to evil (in the moral scale. But since by evil Aristotle means the actualization of a potentiality for evil, potentiality is substantially posterior to evil). Therefore that which has a separate substantial existence is prior to evil; i.e., evil does not exist apart from particular instances of evil. The argument is directed against the Platonic Idea of evil (Plat. Rep. 476a); and the corollary which follows against the identification of Evil with one of the principles of the universe (Aristot. Met. 1.6.10, Aristot. Met. 12.10.6, Aristot. Met. 14.4.10, 11; cf. Plat. Laws 896e, Plat. Laws 898c).
3 The figure, construction and proof are as follows: ***
4 Aristotle implies a proof something after this fashion: FIGURE BAC is an angle in a semicircle. From D, the mid-point of the diameter BC, draw a perpendicular DE to meet the circumference at E. Join EB, EC.***
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