the short of it:
Knowledge is internal.
65. Genuine Virtue.
Those who of old were good practisers of Tau, did not use it to make the people bright, but rather used it to make them simple. What makes people hard to govern is their having too much policy (wisdom). [Those] who [encourage] this kind of policy (or wisdom) in the government of a kingdom is the robber of that kingdom; and [those] who [govern] a kingdom without it is a blessing to that kingdom. To know these two things is the very ideal of government; and a constant knowledge of this ideal I call sublime virtue. Sublime virtue is profound, is immense, is the reverse of everything else! It will bring about a state of universal freedom.
65. ‘Pure, Unmixed Excellence.’
65.1 The ancients who showed their skill in practising the Tao did so, not to enlighten the people, but rather to make them simple and ignorant.
65.2 The difficulty in governing the people arises from their having much knowledge. [Those] who ([try] to) govern a state by [their] wisdom is a scourge to it; while [those] who [do] not (try to) do so is a blessing.
65.3 [Those] who [know] these two things finds in them also [their] model and rule. Ability to know this model and rule constitutes what we call the mysterious excellence (of a governor). Deep and far-reaching is such mysterious excellence, showing indeed its possessor as opposite to others, but leading them to a great conformity to [them].
65. The Virtue of Simplicity.
65.1 The ancients who were well versed in Reason did not thereby enlighten the people; they intended thereby to make them simple-hearted.
65.2 If people are difficult to govern, it is because they are too smart. To govern the country with smartness is the country’s curse. To govern the country without smartness is the country’s blessing. [Those] who know these two things [are] also a model (like the ancients). Always to know the model is called profound virtue.
65.3 Spiritual virtue, verily, is profound. Verily, it is far-reaching. Verily, it is to everything reverse. But then it will procure great recognition.
the long of it:
Exposing people to knowledge is a discriminating act, because true knowledge is not fixed.
Choosing this knowledge over that is limiting. When people and governments choose what knowledge to prioritize, they choose which people to value over others. They also rob people of the opportunity to think for themselves and discover their own true knowledge.
-TB