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What James is pointing to (and what his interlocutor cannot even hear) is exactly the condition that C. S. Lewis diagnosed with surgical precision more than eighty years ago. Lewis did not treat subjectivism as a mere intellectual mistake. He recognized and articulated it as a poison; a solvent (alchemical, tactical) that dissolves the very conditions under which principles can exist, be recognized, or bind at all. What postmodernism later celebrated openly, Lewis watched being installed upstream in the academy and education (‘King & Ketley’s ‘The Control of Language’ - ‘The Green Book’ in ‘Abolition of Man’)) under the intellectual banner of sophist(ication), (so called) neutrality and moral progress™️.
Welcome to Postmodernity. Enjoy your stay.