Why do we dream?
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Dreaming is the result of processing and saving memory
Among scientific communities, the theory holds that we sleep in order for our brains to process the extraordinary amount of data that we take in every day. Our dreams, within this cognitive theory, are just remnants of those daily occurrences bouncing about with no connection, meaning, or significance. I believe it to be true that we process the day during sleep, but I do not believe this is the purpose of REM sleep.
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Dreaming helps process emotions (and unconscious desires)
The emotional theory is similar but, on this theory, it is not memories which we are saving and processing— it is emotional interactions and experiences. For Freud, this was charioted by our innate, animalistic desires. Again, I accept most of this emotional theory (save for Freud’s Oedipus complex), but this does not fully explain all of the intricacies, complexities, and oddities which we encounter in our mid-night slumbers.
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Dreaming is a means of communicating though symbols
While sleep works to process memory and dreams help to process emotion, the spiritual (if you will) aspect of dreaming is as a conduit for information. You may receive symbolic indicators from your body regarding mental or physical health, or perhaps subtleties from the unconscious (or Jung’s ‘collective unconscious’). Many people may also experience communication from loved ones who have passed or give insight to future events.