Licence to be Bad by Jonathan Aldred Summary

Licence to Be Bad critiques how modern economic theories, particularly neoclassical economics, have reshaped societal values to prioritize self-interest over collective good. Aldred argues that ideas from economists like Milton Friedman and agency theory corrupted moral decision-making in business and politics, enabling unethical behavior. The book traces this shift through case studies, showing how economics became a “moral license” for exploitation.

This book suits readers interested in economics, ethics, or social policy, including students, policymakers, and critics of capitalism. It appeals to those seeking to understand how economic theories influence real-world issues like inequality, corporate greed, and climate inaction. Aldred’s accessible style makes complex ideas digestible for non-experts.

• Moral licensing: How economics justified selfishness as rational.
• Agency theory: Prioritizing shareholder profits over societal well-being.
• Neoclassical dominance: The suppression of alternative economic models.
• Ethical erosion: Case studies linking economic theories to crises like the 2008 crash.

Aldred dismantles the myth of economics as a neutral science, exposing its ethical assumptions. He challenges cost-benefit analysis, “trickle-down” theories, and the overreliance on markets, arguing these frameworks ignore moral responsibility and perpetuate systemic inequality. The book highlights how economics became a tool to legitimize greed.

Milton Friedman, Gary Becker, and Michael Jensen are central targets. Aldred critiques Friedman’s shareholder primacy, Becker’s expansion of economics into social domains, and Jensen’s agency theory, linking their ideas to corporate scandals and reduced accountability.

Aldred argues traditional cost-benefit analysis fails climate policy by undervaluing future generations and ecosystems. He advocates moving beyond market-based solutions, emphasizing ethics over profit-driven frameworks. The book critiques carbon trading and warns against “greenwashing” through economic jargon.

Aldred calls for economics to reintegrate ethics, diversify beyond neoclassical models, and prioritize long-term societal health. He advocates policy shifts like stricter corporate accountability, wealth taxes, and rejecting GDP as a progress metric. The book urges readers to challenge economics’ moral authority.

Both critique mainstream economics, but Aldred focuses on moral corruption, while Chang explains economic diversity. Chang’s book is an introductory guide, whereas Licence to Be Bad is a polemic against specific theories and their real-world harms.

Yes, for its compelling critique of economics’ societal impact. Aldred combines academic rigor with engaging storytelling, offering fresh perspectives on inequality, corporate power, and climate policy. It’s ideal for rethinking capitalism’s ethical foundations.

• “Economics didn’t just predict bad behavior—it licensed it.”
• “The market became a moral vacuum.”

These lines encapsulate Aldred’s thesis that economics enabled ethical decline by framing selfishness as rational.

The book contextualizes 2020s challenges like wealth gaps, corporate monopolies, and climate paralysis as outcomes of flawed economic thinking. Aldred’s analysis aligns with post-pandemic critiques of austerity and deregulation.

Some economists argue Aldred oversimplifies complex theories or downplays progress fueled by markets. However, reviewers praise its bold narrative and relevance to contemporary debates about capitalism’s future.