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What is & isn't "evil" is culturally subjective. For one, the Joker has no official origin story. not even the oh-so-popular Killing Joke, which isn't as detailed as the new Lovers & Madmen origin.

If he is evil, it's because he's sane. He fakes his insanity to stay cozy in Arkham instead of rotting on death row. He's an actor with a high IQ & rock-bottom morals.

If he's not evil, it's because he's insane & believes that the world is just a dream where he & Batman are the only real people. If he truly believes this, then he believes that the people he kills don't really exist. Legally, that would make him not competent enough to be responsible for his own actions.

What else can I help you with?