Explore a thought-provoking lecture from the Hayek Lecture Series at Duke University, where Professor James Otteson presents a compelling defense of capitalism while addressing moral concerns that lead people to embrace socialist-inclined policies. Delve into the complexities of human preferences, the power of decentralized decision-making, and the correlation between economic freedom and human prosperity. Examine the trade-offs between reducing inequality and alleviating poverty, and consider the moral values and empirical consequences of different systems of political economy. Engage with challenging questions from the audience and gain insights into the ongoing debate between capitalist and socialist economic models.