Reddit reviews Rituals of Freedom: Libertarian Themes in Early Confucianism
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Roderick Long argues in his book Rituals of Freedom that the early Confucians would have pursued these kinds of libertarian policies. He considers the Taoists too primitivist for his taste, but I think the anarchism implied in Laozi and Zhuangzi is a fuller expression of libertarianism than the limited government/social tolerance of Kongzi (Confucius) and Menzi (Mencius).