Lao-tzu, in his powerful Tao-te Ching, expresses innovative and different ideas of how a state should be governed. Lao-tzu often expresses layered meaning. While it is a very contemplative text, it is also filled with purposive material that can be applied to government and life today. In reading this work, one must carefully choose beliefs that seem to make sense, and that work with society in this day. Lao-tzu, apart from exploring the good, the moral, and the just, implies the obligation of the state to the individuals it governs. In his pithy lines, an immense flow of meaning is conveyed. Lao-tzu believes that action lies in inaction. That is, a politician must do nothing, unless society is in dire need of action. Also, a communal good, rather than individual, is conveyed. Lao-tzu says, "The wise man does not lay up his own treasures. The more he gives to others, the more he has for his own." This shows the masters belief that a society furthers itself with the concern of the whole, rather than the individual. While believing in the virtue of the whole, Lao-tzu also holds strong individualistic beliefs. He often minimizes the power of the state, believing in the goodness of the individual, and not wishing that the state impose on the people. Namely, he expects the leader to provide the people with their needs, but not to annoy with the unnecessary. "If a country is governed with repression," he states, "the people are depressed and crafty." This displays his knowledge, again, that a ruler must not oppress the people with meaningless rules and regulations. Lao-tzu, in his writing, explores many interesting and enlightening ideals that perhaps with the right society and mind set, may one day prove to be effective.
Lao-tzu sees action in inaction, believing that one should endeavor to do nothing. In Chapter Two, he states, "Therefore the Master /can act without doing anything/ and teach without saying a word.