Acharya Prashant explains that our judgments of good and bad are often pre-determined by our conditioning and past impressions rather than being genuine decisions. When we label something as bad based on a pre-existing mental framework, we are not truly deciding; we are merely matching the current situation with our stored concepts. True goodness is spontaneous and fresh, arising in the moment rather than being a product of time, memory, or social conditioning. Our scales of morality change with time, location, and culture, making them unreliable. He emphasizes that while accumulated knowledge is useful for repetitive, patterned tasks like knowing sunrise times, it becomes a barrier when facing something new or experiencing love, as it imposes rigid conditions and expectations.