While you or your husband may not approve or mean any real harm to your child, I don't believe it's practical to tell any child that they are bad - bad can stick, it's a label, it's negative and it can grow like a weed when planted in one's brain, especially children, as they are vulnerable/innocent - they believe what they hear about their own person, especially when words are repeated. Thus, I believe it is harmful .....
Children are most definitely a product of their environment - If one encourages a child with positive reenforcement, the child will adapt better and become more positive as they get older, and can relate better to society, will have self-esteem, will have a general overall good outlook about life, about others, mostly about self.....and that is what all of us strive for in life.
If one fills a child with negative connotations, chances are the child will start believing it, or better yet, start acting it out which becomes a habit, a habit which may prove very hard to break. It causes psychological damage - anywhere from mild to severe.
As I don't believe that any child is bad - if the child is not doing what the parent is requesting, then simply being honest would be the right thing to do and it's to the child's and parents' advantage. Parenting takes patience, parenting takes unconditional love - it is certainly the parents' responsibility to teach right from wrong, good from bad. Some children learn faster than others - but, practice makes perfect.
Peace, Love & Happiness,
The Mystic Wave