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Functional is a scale, not a binary. You could well say that Nazi society was really functional and went amazingly. However, it was not-in-small part to their actions that their society was defeated. Afterwards, it was reformed in a way that has not only done far better, but has lead to more people being happy, productive, and living decent lives. Even a society that looks like it is functioning, can be dysfunctional. A society where any group of people is pushed down and kept from their rights to live is not a fully functional one.