In the late 70s, as the US was facing a , it experienced an unprecedented phase of stagflation, with inflation and unemployment rates soaring. At this difficult moment, a new American leader is in office... His name? Ronald Wilson Reagan. Eight years later, the final security report he received on his last day in the White House was described that the world was safe, there was no crisis, and the domestic economy was healthy.
So, how did Reagan transform the US economy from financial crisis to prosperity in just eight years? Amazingly, President Reagan's governing philosophy and economic policies came from a book written by a sage 2500 years ago in the ancient Eastern country - that is the "Tao Te Ching" of Laozi from China.
During Reagan's presidency, he twice quoted the famous saying of the ancient Chinese philosopher Lao Tzu in his State of the Union address: "Ruling a big kingdom is like steaming a small fish." His economic policies also strongly reflect the philosophical concept of "governing by non-action" in the Tao Te Ching.
Reagan firmly believed in heavily relying on market forces and opposed excessive government intervention. He deregulated multiple industries, allowing for free market competition, which led to an era of prosperity. This is what Laozi referred to as "governing by non-action". But non-action does not mean lying at home enjoy the sun doing nothing. but rather, reducing intervention to allow the market to follow its own rules.
In addition, President Reagan implemented massive tax reforms, including tax cuts and simplification of tax procedures, which is consistent with Lao Tzu's concept of "People starve because their food tax is heavy, so they are starving". Therefore, Reagan reduced taxes and reduced the direct impact of the government on the economy, giving the market greater freedom.
However, we must remember today that every policy has a dual nature. While President Reagan's policies stimulated economic growth in many ways, they also led to a sharp rise in the U.S. fiscal deficit, which has put long-term pressure on the future U.S. economy.
When we analyze Reagan's economic policies in depth, we notice that his leadership abilities and innovative concepts were, to a certain extent, inspired by Tao Te Ching. Despite confronting an unprecedented period of stagflation, he managed to successfully stimulate a resurgence in the American economy by emphasizing market freedom and reducing government intervention. This experience testifies the practical applications and value of Tao Te Ching's philosophical theories in contemporary policy-making.
Today, these concepts stemming from Lao Tzu's Tao Te Ching 2500 years ago are still closely related to our life, politics, ideas, and nature. This book teaches us to understand the world, life, and most importantly, ourselves.
An increasing number of people are now turning to the Tao Te Ching, seeking enlightenment to enrich their lives. This ancient, timeless classic, despite the ages it has weathered, remains consistent in its value and guidance, leading individuals towards a more enlightened path of life.
The wisdom of the Tao Te Ching lies not only in its philosophical concepts, but also in its practical applications. Whether facing decisions in life or standing at the crossroads of professional development, the Tao Te Ching can offer us unique insights. It teaches us how to maintain balance in a complex world, how to find stability in change, and how to find peace amidst pressure.