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Cayenne comments on The 5-Second Level - Less Wrong
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Very true.
I didn't mean to suggest that the truth/falsehood line was as usefully socially as I believe it is internally. The social reaction you may decide on is mostly independent from truth.
Internally, it's important to recognize that truth, since it is vital feedback that can tell you when you may need to change.
Edit - please disregard this post
And, when false, when you may need to change what you do such that others don't get that impression (or don't think they can get away with making the public claim even though they know it is false).