This chapter describes an economic ethic implicit in the Daoist tradition that envisages economic health, not as synonymous with growth, but akin to stability. The Daoist notion of health aspires to achieving longevity of body, of political rule, and, in contemporary applications, of our natural environment. Longevity is possible through alignment with patterns of nature, and by shunning anthropocentric urges to dominate. In the context of contemporary economic discussion, the Daoist maxim of ‘noncoercive action’, or wuwei, is often likened to the notion of laissez-faire in classical liberal economics. While both traditions advocate a lack of intervention, Smithian classical economics views self-interested desire as a positive force for increasing economic prosperity within society. By contrast, the Daoists of ancient China cautioned against excessive desire and self-interest. This chapter begins with a very brief history of Daoism and goes on to draw primarily from the core teachings of the Daoist tradition: the Zhuangzi and particularly the Daodejing.