This excerpt from James Legge’s 1891 translation of the Tao Te Ching outlines Lao-Tzu’s thoughts on statecraft. The full text is available on Project Gutenberg. A more modern translation, not in the public domain, is available here. The original Chinese text is said to date to the 6th century BC; the true age of the text is a matter of debate.

Lao-Tzu urges that the people be largely left alone; if they are not harassed by the state, they can manage their own affairs well enough.

Chapter 57

1. A state may be ruled by (measures of) correction; weapons of war may be used with crafty dexterity; (but) the kingdom is made one’s own (only) by freedom from action and purpose.

2. How do I know that it is so? By these facts:—In the kingdom the multiplication of prohibitive enactments increases the poverty of the people; the more implements to add to their profit that the people have, the greater disorder is there in the state and clan; the more acts of crafty dexterity that men possess, the more do strange contrivances appear; the more display there is of legislation, the more thieves and robbers there are.

3. Therefore a sage has said, ‘I will do nothing (of purpose), and the people will be transformed of themselves; I will be fond of keeping still, and the people will of themselves become correct.  I will take no trouble about it, and the people will of themselves become rich; I will manifest no ambition, and the people will of themselves attain to the primitive simplicity.’

Chapter 58

1.

   The government that seems the most unwise,
   Oft goodness to the people best supplies;
   That which is meddling, touching everything,
   Will work but ill, and disappointment bring.

Misery!—happiness is to be found by its side! Happiness!—misery lurks beneath it! Who knows what either will come to in the end?

2. Shall we then dispense with correction? The (method of) correction shall by a turn become distortion, and the good in it shall by a turn become evil. The delusion of the people (on this point) has indeed subsisted for a long time.

3. Therefore the sage is (like) a square which cuts no one (with its angles); (like) a corner which injures no one (with its sharpness). He is straightforward, but allows himself no license; he is bright, but does not dazzle.

Chapter 59

1. For regulating the human (in our constitution) and rendering the (proper) service to the heavenly, there is nothing like moderation.

2. It is only by this moderation that there is effected an early return (to man’s normal state). That early return is what I call the repeated accumulation of the attributes (of the Tao). With that repeated accumulation of those attributes, there comes the subjugation (of every obstacle to such return). Of this subjugation we know not what shall be the limit; and when one knows not what the limit shall be, he may be the ruler of a state.

3. He who possesses the mother of the state may continue long. His case is like that (of the plant) of which we say that its roots are deep and its flower stalks firm:—this is the way to secure that its enduring life shall long be seen.

Chapter 60

1. Governing a great state is like cooking small fish.

2. Let the kingdom be governed according to the Tao, and the manes of the departed will not manifest their spiritual energy. It is not that those manes have not that spiritual energy, but it will not be employed to hurt men. It is not that it could not hurt men, but neither does the ruling sage hurt them.

3. When these two do not injuriously affect each other, their good influences converge in the virtue (of the Tao).