#67 The Three Treasures of Lao Tzu

Tao Te Ching, Chapter 67: Unveiling the essential principles that guided the Taoist sage's life

Sep 08, 2024

Welcome back to The Wisdom of Lao Tzu.

This week, we explore Chapter 67 of the Tao Te Ching, where Lao Tzu reveals his three "treasures" — core principles for mindful living.

According to Lao Tzu, compassion gives us courage, frugality grounds us in reality, and humility opens the door to true collaboration and growth.

Are these principles still relevant today? How can they shape the way we live and lead?

Let’s dive in.

**67**

天下皆謂我：道大，似不肖。

夫唯大，故似不肖。

若肖，久矣其細也夫！

我有三寶，持而保之。

一曰慈，二曰儉，三曰不敢為天下先。

慈故能勇；儉故能廣；不敢為天下先，故能成器長。

今舍慈且勇；舍儉且廣，舍後且先；死矣！

夫慈，以戰則勝，以守則固。

天將救之，以慈衛之。

Border-crossing: English translations

#1 Lin Yutang’s version

All the world says: my teaching (Tao) greatly resembles folly.

Because it is great; therefore it resembles folly.

If it did not resemble folly,

It would have long ago become petty indeed!

I have Three Treasures;

Guard them and keep them safe:

The first is Love.

The second is, Never too much.

The third is, Never be the first in the world.

Through Love, one has no fear;

Through not doing too much, one has amplitude (of reserve power);

Through not presuming to be the first in the world,

One can develop one’s talent and let it mature.

If one forsakes love and fearlessness,

Forsakes restraint and reserve power,

Forsakes following behind and rushes in front,

He is doomed!

For love is victorious in attack,

And invulnerable in defense.

Heaven arms with love

Those it would not see destroyed.

#2 Edmund Ryden’s version

Everyone says I am great, great yet unlike others.

Now it is precisely because I am unlike others that I can be great.

Were I like others then—oh so long ago!—I would have become small.

Now I always have three treasures which I keep and protect:

The first is called ‘compassion’;

The second is called ‘moderation’;

The third is called ‘not daring to seek promotion’.

Now because of compassion I can be brave;

Because of moderation I can be generous;

Because of not daring to seek promotion, I can be the premier of perfect ministers.

If today

I were to lay aside my compassion for the sake of bravery;

I were to lay aside my moderation for the sake of generosity;

I were to lay aside my rear position for the sake of priority;

Then I should surely die.

Now compassion in wartime results in victory and in defence results in security.

When heaven wants to establish someone,

It encircles him with compassion.1

#3 D. C. Lau’s version

The whole world says that my way is vast and resembles nothing.

It is because it is vast that it resembles nothing.

If it resembled anything, it would, long before now, have become small.

I have three treasures

Which I hold and cherish.

The first is known as compassion.

The second is known as frugality.

The third is known as not daring to take the lead in the empire;

Being compassionate one could afford to be courageous,

Being frugal one could afford to extend one’s territory.

Not daring to take the lead in the empire one could afford to be lord over the vessels.

Now, to forsake compassion for courage, to forsake frugality for expansion, to forsake the rear for the lead, is sure to end in death.

Through compassion, one will triumph in attack and be impregnable in defense.

What heaven succours it protects with the gift of compassion.2

Deeper dive

Reading this chapter feels like listening to a wise friend confide in us.

Lao Tzu opens his heart, sharing the three treasures that guided his life.

These are not merely abstract concepts. We can speculate that they are principles he lived by.

Compassion and love

Both D.C. Lau and Edmund Ryden translate Lao Tzu’s first “treasure” as compassion, while Lin Yutang uses the word love. In either case, the message is clear: to act with empathy.

Lao Tzu teaches that compassion is the root of true courage—just as a mother’s love for her children drives her to protect them fearlessly.

Compassion elevates us, bringing out the very best in human nature.

We naturally feel terrible at the sight of suffering. Our empathy draws us to their plight, whether it is children, the innocent, or the marginalized.

It is as if hurting one person is a wound inflicted on all humanity.

Compassion fuels courage, compelling us to step forward and defend others, even when it puts us in harm’s way. Therein lies the essence of our shared humanity.

When we act with compassion, we transcend our limitations, standing as protectors of each other and ourselves.

Knowing your limits

Lao Tzu’s life philosophy is very much focused on cultivating self-awareness and clarity.

He urges us to cultivate clarity of mind—an essential practice whether we are interacting with others or navigating life's complexities. His words remind us of the importance of self-reflection:

The people of the world are merry-making,
As if partaking of the sacrificial feasts,
As if mounting the terrace in spring;
I alone am mild, like one unemployed,
Like a new-born babe that cannot yet smile,
Unattached, like one without a home.
...
The vulgar are knowing, luminous:
I alone am dull, confused.
The vulgar are clever, self-assured;
I alone, depressed.
Patient as the sea,
Adrift, seemingly aimless.(Chapter 20)

In this passage, Lao Tzu describes feeling out of step with the world around him. While others indulge, he stands apart, grounded in simplicity.

This reflects his broader understanding of things: to recognize limits—not just of the material world, but of our own capabilities.

Therefore, his second piece of “treasure” — frugality is tied to self-awareness and simplicity.

Too often, we push ourselves beyond what is sustainable. We chase unattainable goals or try to force outcomes, forgetting that life is not something to be bent to our will.

As Lao Tzu warns, “He who tiptoes cannot stand; he who strides cannot walk.” His lesson in frugality speaks not just to material restraint but to emotional and psychological discipline.

Integrating frugality in our lives, therefore, is about understanding one’s limits and creatively leveraging such limits. It is deceptively simple yet challenging to practice.

Much like managing personal finances, we intellectually know the value of living within our means, but emotionally, we often overspend, justifying impulsive purchases after the fact.

This mirrors our struggle to control desires in everyday life: simplifying is easier said than done.

Simplicity is about embracing the natural and unadorned potential. By shedding excess desires and focusing on what truly matters, we move closer to living authentically. As Lin Yutang translates it:

Reveal thy simple self,
Embrace thy original nature,
Check thy selfishness,
Curtail thy desires.(Chapter 19)

Lao Tzu offers us a profound yet practical principle for everyday life: simplicity leads to longevity.

His advice remains surprisingly relevant in an age where overconsumption is the norm.

Whether managing personal finances or building a business, frugality is not solely about scarcity. It is about prudence.

Being frugal means proactively leveraging limited financial resources in the production process, and it involves estimating future economic gains and losses.

Specifically, if an informed entrepreneur can identify market opportunities and acquire underpriced and undercapitalized factors of production3 based on thorough and reasonable calculations to sell at higher prices in the future, then economic profits can be generated.

This is to say that the frugal and far-sighted entrepreneur must be prudent with limited resources to acquire undervalued factors of production while betting that this act will pay off with revenue from selling products and services in the future.

This principle also extends to governance and leadership.

Given the limited resources, how to allocate them efficiently is a test of management skills and creative use of the frugality principle.

Lao Tzu mentioned that frugality can lead to extension and growth.

By being mindful of our limits and resources, we can offer more to those in need, and when crises arise, we will be ready to act with strength and resolve.

“Not daring to take the lead”

Lao Tzu’s third “treasure,” “not daring to take the lead in the empire,” can be interpreted as humility or not contending, perhaps the most challenging practice in governance.

In the modern world, leaders often seek to dominate and control, particularly in economic policies. Yet Lao Tzu cautions against such aggressiveness, offering an alternative approach of following instead of contending.

When governments contend, they introduce restrictions, regulations, and policies that make it harder for businesses to thrive.

Contending, in this sense, manifests as competition for control—driven by a desire to lead or dictate outcomes in society. However, this approach can strain the very ecosystem that sustains wealth and innovation: the entrepreneurs and business owners.

Yet, Lao Tzu’s philosophy of “not daring to take the lead” provides a clear solution. By stepping back, the government creates the space for businesses to take the initiative.

Entrepreneurs are best positioned to build wealth and drive innovation—creating economies of scale that benefit society. Their ingenuity and calculated risk-taking can drive growth.

The public institutions, in turn, should serve as the backbone that supports this creative engine. The government can assist by building infrastructure, upholding the rule of law, and offering incentives without dominating.

In an ideal scenario, the government facilitates while businesses lead.

This harmony between non-contending governance and entrepreneurial freedom fosters a resilient and prosperous economy that thrives on innovation, risk, and the natural flow of growth.

Spiritual Taoism

Personally, I would say this is the most beautiful chapter of the Tao Te Ching.

It describes Lao Tzu’s thoughts concisely and also draws us closer to the philosopher’s inner world.

And it inspires us to reflect on the relevancy of his three cherished principles in the modern world.

What are the practical utility of applying these principles? Aren’t they outdated, old-fashioned ideas in the commercialized society?

What are your treasures?

Lao Tzu’s three treasures—compassion, frugality, and humility—can be reframed as responsibility and conscience when applied to the realm of politics.

Compassion, the bedrock of governance, brings humanity back to the center of public affairs. By grounding leadership in these principles, Lao Tzu offers a timeless model of political wisdom.

In modern governments, layers of bureaucracy and complex systems often obscure the workings of power.

Political dynamics become distant, alienating the public, while the faceless structures of authority seem far removed from the needs of everyday life.

Yet Lao Tzu challenges this disconnect, urging us to rethink the role of government and politics on a fundamental level.

Should politics be narrowly perceived as a game of power struggles and regime survival, of winning and losing office? Or is it supposed to serve a higher purpose that elevates the human condition?

True leaders, according to Lao Tzu, must be both capable and morally reliable, guided by wu-wei— the principle of acting without force or striving.

Such leaders bear the responsibility to serve and support, not to dominate, and their actions are rooted in conscience and sacrifice.

They work not for personal gain but for the well-being of the people, striving to create a political order that is humane, harmonious, and deeply attuned to the natural flow of life.

Can we envision a society where leaders, citizens, and various social groups coexist harmoniously, guided by these principles?

In such a society, government does not dictate or control but preserves and protects. It fosters an environment where people's actions emerge naturally from a sense of responsibility and shared conscience.

This model of governance respects individuals' dignity and autonomy while creating space for organic, spontaneous associations to flourish.

Is a polity grounded in these ideals possible in today’s world?

Lao Tzu’s principles offer a powerful counterbalance to the conventional view of politics as a battle for dominance and control.

Good governance, at its core, should be based on humanity, respect for individuality, and conscience.

Governments can adopt a more humble, broad-minded approach in economic or social matters by choosing not to contend or lead aggressively. This allows the natural order to thrive, letting economic and business dynamics unfold organically rather than imposing arbitrary control.

As the principle of “not daring to take the lead in the empire” alludes to, Lao Tzu's philosophy reveals an inherent mystical experience deeply rooted in a sense of awe for the mysterious and powerful natural order.

Yet, times have changed. Scientific and rational thinking can enlarge the ego and arrogance of individuals.

Ideals can be forgotten. Indifference and apathy can paralyze an entire society.

Consider this: when a society’s economy falters and loses vitality, it is often because the government has entered the marketplace, competing with private enterprises for revenue and influence. This interference disrupts the natural flow of the economy, stifling innovation and the spontaneous growth that true prosperity relies on.

And the same level of conceit can be seen in cultural, social, and other spheres of life.

This is Lao Tzu’s quiet but profound reminder: sometimes, the most effective action is not to act at all.

Thanks for reading!

Wishing you peace and wisdom,

Yuxuan