The Dispossessed, which the author calls an "ambiguous Utopia," explores social and political themes in greater depth than typical science fiction. The narrative takes place across two differing worlds: a moon colony named "Anarres" (meaning "without things") and its nearby planet, Urras. Anarres is an experiment in complete socialization, marked by the lack of private property, social classes, or hierarchy, with even babies' names generated by computer. This idealistic form of anarchy stands in stark contrast to Urras, an older society based on wealth and class divisions. A physicist from the resource-deprived colony journeys to the capitalist world to discuss the far-reaching effects of his revolutionary temporal theory on all inhabited planets. The story does not show preference for one world over the other but rather provides a balanced comparison of each society's pros and cons.

Alongside its exploration of capitalism versus socialism, the novel delves into the scientist's position in society. The physicist at the center of the story realizes that the oppressive nature of public opinion and bureaucracy on Anarres threatens freedom just as much as the political power struggles on Urras. Shevek, the physicist, experiences exploitation in both worlds: on Anarres, as a gifted individual in an egalitarian community, and on Urras, as a pawn for rival nations.

The novel's anarchistic themes draw inspiration from Taoist philosophy, which promotes a society that aligns with the natural world. In nature, harmony and balance take precedence over hierarchical structures, and there are no unequal social classes. However, the quest for social harmony often conflicts with individual needs and desires. A major issue within Anarres' society is the oppressive nature of social approval and disapproval. The Taoist concept of inaction is also present on Anarres, where aggressive behaviors are discouraged. Throughout the story, Le Guin employs a dialectical approach, highlighting significant flaws and strengths in both worlds. While Urras allows for class inequalities, it also creates an environment where art and culture can thrive, unlike Anarres, where public opinion and bureaucracy can hinder talented individuals.