Douglas W. Rae, in this lecture from Yale's Capitalism: Success, Crisis and Reform, builds a practical theory of freedom from Hayek's Constitution of Liberty. He frames free societies as learning machines that aggregate individual knowledge, using automotive manufacturing and university administration as examples of how freedom lets people profit from others' expertise. He walks through Hayek's parable of the rock climber trapped in a crevasse to ask whether refusing to help someone counts as coercion, then applies these ideas to extreme poverty in developing countries. Rae also brings in the controversy over Yale University Press declining to publish the Mohammed cartoons in a scholarly book. The lecture closes with Hernando de Soto's distinction between live and dead capital, arguing that secure property rights are what unlock capitalism's productive power. Chapters move from the Hayek framework through the nation-state framework to the de Soto framework.