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I don't understand why people do lie. It usually just gets you into more trouble, and offends the person you lie to.
You're kinda generalizing here... Lying is necessary to keep society functioning... I'm sorry but if everyone said what was on their minds all the time, people wouldnt be able to get through the day... White lies keep people happy... As for serious lies that are said simply to keep you out of trouble, well I guess some people are cowards and dont want to face up to what they've done...
The reasons have largely to do with self-esteem.