This paper argues that the dominant mainstream neo‐classical economic theory propounds a world‐view which is based not simply on half‐truths, but on straight lies. This is particularly significant since the influence of the economic world‐view reaches into every realm of social thought. Although overtly grounded in utilitarianism, the basis of neo‐classical thought has undergone two shifts of meaning which have converted the original self‐evident utilitarian presuppositions into an ideology.The first of these alters the utilitarian proposition that ‘we seek satisfaction’ into (...) the statement that ‘we only seek satisfaction’. It follows that human action is motivated by nothing other than selfishness and greed, and that altruism therefore cannot exist: anything that looks like altruism is therefore nothing other than egoism in disguise, and there is no place for ethical reasoning in individual choice.The second shift alters the premise that our goal is ‘maximum satisfaction’ to the assertion that what we seek is ‘maximum monetary gain’. This shift is already present in the writings of Jeremy Bentham, and forms the basis of much subsequent work in economics. In particular, it has facilitated the emergence of what one might term ‘economic imperialism’, i.e. the use of economic theory to analyse social issues – family size, racial discrimination, marriage, education choices, among others. In all of these cases monetary gain is the paramount criterion. For business ethics the most obvious example here is the absolutisation of profit as the sole criterion of business achievements, and of salary as the sole criterion of work choice and worker satisfaction.Both of these premises are then used to demonstrate that it is free competition which will ensure maximum social welfare. This conclusion is both relativistic and reductionistic. In the first place, the necessary conditions for perfect competition can never exist. Nor can ‘optimum social welfare’ be translated into ‘optimum welfare for all’ in an economic world‐view which sees wealth and poverty as the ‘just deserts’ of hard work and laziness respectively.The dominant economic theory is thus explicitly immoral in that it enshrines the absolute sovereignity of the individual and the law of the jungle as social norms. The qualitative measure of human happiness is desire, the quantitative measure is money. From an ethical perspective we must reject the falsity of this world‐view. (shrink)