In countries such as Singapore, there are very strict rules in society - one person was even given the electric chair for spray painting. However, in this society the rules are slightly less strict and as a consequence of that there is a lot less crime. As a direct consequence of this people feel a lot more free and they can stay up late at night anywhere without an unsafe feeling. Due to this I would say that having very strict rules means that people feel a lot more safe and secure in their environment and therefore are not restricted by the sort of things that may turn people away from going to do things that are blocked by the ease of law.

Not really if they are rational .

Only if the rules are not enforcing common sense and decency. Rules are in place to allow for people to do whatever they want as long as they are not hurting other people. However, the moment it goes past that and the laws say things like:

1) Black people should sit in the back of the bus and white people have front privileged

or

2) All waiters should be female.

or

3) Men are not allowed to use the washroom after 6 pm.

Then it is impinging on people's freedom. Freedom and less safety are correlated. In fact, I think that being too safe can obstruct both freedom and progress. More freedom should be given to people who contribute to society without hurting it. I think I might clarify this later.