If thinking is like perceiving, it must be either a process in which the soul is acted upon by what is capable of being thought, or a process different from but analogous to that. The thinking part of the soul must therefore be, while impassable, capable of receiving the form of an object; that is, must be potentially identical in character with its object without being the object. Mind must be related to what is thinkable, as sense is to what is sensible.
Error is multiform (for evil is a form of the unlimited, as in the old Pythagorean imagery, and good of the limited), whereas success is possible in one way only (which is why it is easy to fail and difficult to succeed - easy to miss the target and difficult to hit it); so this is another reason why excess and deficiency are a mark of vice, and observance of the mean a mark of virtue: Goodness is simple, badness is manifold.
Also our fellow competitors, who are indeed the people just mentioned - we do not compete with men who lived a hundred centuries ago, or those yet not born, or the dead, or those who dwell near the Pillars of Hercules, or those whom, in our opinion or that of others, we take to be far below us or far above us. So too we compete with those who follow the same ends as ourselves; we compete with our rivals in sport or in love, and generally with those who are after the same things; and it is therefore these whom we are bound to envy beyond all others. Hence the saying.
Take the case of just actions; just punishments and chastisements do indeed spring from a good principle, but they are good only because we cannot do without them - it would be better that neither individuals nor states should need anything of the sort - but actions which aim at honor and advantage are absolutely the best. The conditional action is only the choice of a lesser evil; whereas these are the foundation and creation of good. A good man may make the best even of poverty and disease, and the other ills of life.
Every community is an association of some kind and every community is established with a view to some good; for everyone always acts in order to obtain that which they think good. But, if all communities aim at some good, the state or political community, which is the highest of all, and which embraces all the rest, aims at good in a greater degree than any other, and at the highest good.