Original Text
When governing the world with magnanimity, the people become honest and simple; when governing with harshness, the people become cunning. Misfortune is where happiness leans upon; happiness is where misfortune lurks within. Who knows the ultimate outcome of this cycle of loss and gain? There is no fixed standard. The correct suddenly turns into the deviant, and good suddenly turns into evil. People have been deluded by this for too long. Therefore, the virtuous person is upright without being rigid, has edges but does not wound, is straightforward without being reckless, and is bright without being dazzling.
Guide
When governance is lenient, the people are honest; when governance is harsh, the people become cunning. All contradictions in the universe transform into their opposites, so a ruler should be upright without being rigid, have edges without being sharp, be straightforward without being reckless, and shine without being dazzling.Analysis
This chapter first explains the benefits of governing through non-action: when state politics are broad and simple, the people's customs naturally become honest and pure. It then discusses the concepts of misfortune and fortune, the upright and the strange, good and evil. In Laozi's view, misfortune and fortune, the upright and the strange, and good and evil are not absolutely fixed; once time and space conditions change, they often transform into their opposites. Therefore, everything must be done in moderation.
This chapter continues from the previous one, discussing the way a wise ruler governs the state—governing by non-action. Laozi says, "When the government is lenient, the people are simple and honest." Here, "lenient" means generous and benevolent; "simple and honest" means natural and unadorned. This tells us that if a ruler can implement the strategy of governing by non-action, the people will abandon selfish thoughts and refrain from acting rashly, returning to a state of natural simplicity. With inner simplicity, people will not stir up trouble, and thus the state will be peaceful and stable. Conversely, if a ruler imposes harsh decrees, the people will not only fail to abandon selfish desires but will also compete to satisfy their cravings; when their endurance reaches its limit, rebellion is inevitable. The process of resistance is essentially a contest of wits, and if the people's intelligence is insufficient to cope with the ruler, they will fall into dire straits.
In this chapter, Laozi presents a crucial philosophical proposition: "Misfortune is what fortune depends upon; fortune is where misfortune hides beneath." This statement teaches us that disaster and happiness are interdependent, neither existing independently of the other. It reveals that behind every happiness lurks calamity, yet calamity is not permanent—its opposite is happiness. We all know the story of "the old man losing his horse, who knows it might be a blessing." It tells of an elder who lost his horse and then regained it; people came to congratulate him, but he did not see it as good fortune. Later, his son fell from the horse, and people came to console him, yet he did not view it as misfortune, so he felt no sorrow. Days later, the government came to conscript soldiers, and his son was spared due to his injury. This tale perfectly illustrates Laozi's view. Thus, there is no absolute boundary between fortune and misfortune; being joyful or sorrowful over them is unwise. Therefore, we must learn to face disaster and happiness with equanimity, achieving the state of "not rejoicing over gains nor grieving over losses"—this is the great realm of life.
Laozi lived in an era of frequent wars, where people barely survived amidst conflict, constantly fearing the arrival of disaster. He attributed the people's misfortune to social changes. In ancient times, people lived in peace and the world was well-governed. Later, the concept of private property emerged, social hierarchies appeared, and oppression began. This oppression awakened people's minds, leading them to use their intelligence to create all kinds of novel artifacts. In the previous chapter, Laozi rejected these artifacts, believing they fostered corrupt tendencies and twisted thoughts. Since behavior is determined by thought, under such twisted thinking, people deviated from the Way and became disconnected from nature—cutting down forests indiscriminately, slaughtering animals wantonly, polluting the environment, and so on. Such reckless actions resulted in a deteriorating living environment, ultimately harming themselves. Considering Laozi's era, people's selfish desires were extremely inflated; they not only avidly competed for fame and profit but also directly seized others' possessions. Yet the goods they acquired were constantly at risk of being taken away, preventing them from attaining true happiness, and their perception of fortune and misfortune became numb and directionless.