Able to understand or perceive situations with keen insight and good judgment; having accurate perception and wisdom.
Compound of 'clear' and 'sighted' (from 'sight,' Old English gesihth). Originally meant literal good eyesight, but by the 1700s had evolved to mean keen mental perception and discernment.
What's fascinating is the metaphorical journey: we started using 'clearsighted' to mean people with good *literal* vision, then borrowed it to describe good *mental* vision, and now we barely remember it ever meant actual eyesight.
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