politicians tell us they do. >> my job is to create jobs. john: where are all those jobs? >> more than two years since the recession, but job growth has been slow. why is this recovery worse? i say it is because government now has too many rules. >> lemonade for sale. john: i tried to open as simple lemonade stand but could not make it through the months of legal hoops required. so i did this without. the fox lawyer gave me the okay

but did not actually sell anything. >> wait. i can let you drink this. john: i have to give everyone refunds and did eliminate back. how soon until american policies feature of rainier's out of business home? on to the nursery does you good. government is the war against lemonade stands, people who raised oysters on their own property, cigars sellers and marijuana sellers of being their states' laws. >> we will enforce federal law. >> too much federal law and state law and local law. it's killing jobs by making were illegal. illegal jobs. that is our show tonight. ♪ >> and now john stossel.

john: i tried to get the permits to open a legal emanates stand outside the studio, but it was almost impossible. fortunately when kids sell lemonade authorities usually ignored their excessive loss. and that's a good thing says -- says michael whole house, an entrepreneur who made big bucks when he sold the computer company started. and then your 10-year-old daughter asking for a turtle and what happens? well -- >> she wanted the turtle, too many pets, so of course i said the next morning she gets this great idea to start a lemonade stand because -- john: she wanted the money to buy her own turtled. >> exactly right. this is kind of how america works. if you want something start a company and created. it was the most unbelievable day we had together. and it really got -- i saw the light poles go off and her head.

for the first time she really understood how free enterprise works and how business works and how money worked. it exposed to what america is all about. and it occurred to me what an incredible opportunity for us to do this all across the country to jump-start businesses again by getting to the future of our country. john: you started houston and say, let's have lemonade date. first time you got to douse a stance. now you're in your sixth year and you have 200,000 stands around the country. >> system and maybe even more. so our goal is to get by next year the amelya stands in 100 u.s. cities where we believe ultimately every child in america should do a lemonade stand. john: some cities where you won't even try, san francisco. >> an awful lot of flaws in our country, and those laws have

unintended consequences. although the health department is designed to help protect us from bad food and bad vendors, it also is preventing us from teaching the youth of america what we have been doing for hundreds of years in the united states and to eliminate stance. john: most places, just a bunch of kids to eliminate day and we will allow with, but some cities say it would be safe. we have this rule and that rule. it won't even budge. >> with the health departments are the police, as their representatives, have gone out and arrested these kids, almost every case is turned into a public outrage where they're saying he missed the point. you need to back down and the health department is to become supporters. john: you don't say, hey, kids, go sell lemonade, you have adults. john: is how to run a business. he teaches someone what he calls

the four p's. >> basically learning the business side easing the four p's top price of products from a place, and profit. figure out what will be selling in, soon be selling it for. >> these 14 steps to success setting goals, planning, finding an investor. make it an investor. >> lemonade day is all about the experience of teaching you every step in the process. john: they have to borrow money to start? >> what a great way to teach them early. they get their elevator speech, -- john: elevator speech means it has to be quick enough that someone in an elevator could hear it. >> right. why should you invest in our business. john: one of the things he teaches kids is important to make your lemonade business visible. >> blue keep things like this guy. he is an important part of our advertising. what is important is it attracts attention. making ms. -- music, things peon

see from faraway. >> so we put understand? >> balloons. john: i guess most of them don't have guts by the stand, but i think most house department to the health departments could frown on that. as i said earlier, all the rules is supposed to obey, and even a little business i think 160,000 pages of rules. we have them here. just from the fed. people have to spend lots of money trying to understand and obey all these rules, money that could have gone into hiring some productive people, plus americans -- cost americans 46 billion a year to follow just the new regulations that the obama administration closed. 46 billion a year that could have gone to job creation. alison fraser of the heritage foundation health, but those numbers. allison.

>> i think a bush as the big regulator. people say he was of the regulator, but he hired thousands of new regulators. but what obama has done is much more. >> that is absolutely right. president bush, when he was in office, had 28 major new rules passed under his administration. the first three years alone. john: 28 major new rules. the cost for president bush's role for the first three years of your ministration was 8 billion. we had a virtual explosion, almost a regulatory assault on our system of free enterprise and our job creators. john: the department of transportation, new standards for air bags similar designs so that if you get from that of a car somehow you will be safe. department of energy, extra costs for appliances, and these have unintended consequences.

the extra cost may deter you from buying a new one. use the older plants logger which uses more energy. john: that's exactly right. extra costs that are passed along to he consumer. what a novel thought? and consumers are going to make a decision as to whether it works for them to replace their refrigerator or their freezer or they're central air-conditioning and heating. they may use longer, these less efficient types of appliances. john: they want to do didn't think they are doing good. >> many of these things are very well intended kinds of initiatives. i don't know that i agree that all of the mark. but this is one of the problems when you have big government trying to take care of absolutely every perceived defaults or risk that could happen in any individual's life. there are many unintended consequences, and what we are dealing with right now that is

really front-end center in our economy is that we can't create jobs. that's because our economy is being assaulted by these deregulations. john: michael, could you build it up today? the company is sold to spread? >> it would certainly be harder. it would take more. so what happens with government regulation, it disproportionately affects small businesses because they don't have the resources to be able to deal with all of it. john: i got a hold -- compliance , i hate that word, compliance depaatment. we can handle all this. and it will actually help us against the little guy because he will struggle. >> when you look at where all the jobs are created in america it is not in the big companies, it's in all of the small companies. and according to the foundation, which is the big organization around the entrepreneur ship the companies are going down. the number of new starts is falling.

this is not good news for us over the long haul. john: would you tell the kids to mecca can't believe the kids are dealing with compliance issues. >> well, at this point you first teach them how to start a business. then you introduce the really rough regulations and taxes and all the rest of them, but let's have some success first. it. john: it keeps going and they are having success, and they come out of this excited about it. i don't want to do this. this is a grind. >> of course. not everyone is going to love it. so many of them do. even if you want to be an artist you're an entrepreneur because you create a product, turn around and sell it, and this was all about how we teach to the youth of america to achieve the american dream. what is there role? john: i'm glad you achieve this, moving your company from one employee to 1400 employees. if these rules make that harder,

that's an awful thing for america. >> it slows down the process and a very big way. i thought we were supposed to be the land of opportunity? john: we were. >> we still are. it's just getting harder every year. the sea, the regulators, as you pointed out, great at making laws, but how many every year did they take off the books when we find that there are no longer important to. john: none, one, to. >> regulators don't get it. thank you. john: thank you. coming up on tonight's show, was system of global warming, cigars, and marijuana. ♪ [ female announcer ] need help keeping your digestive balance?

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♪ john: one thing but defending individual liberty is that sometimes you need to defend actions that i despise. i'm a little lot about what i

despise. i have no trouble with sex workers, with recreational drug users, with gamblers, but there is one group by a poor, and i'm talking about you, rush limbaugh. and you, clarence thomas and you, h. l. mencken, talking about your disgusting drug habit, you smoke these, cigars. these can stink up a whole neighborhood. i think there should be laws that prevent people from smoking bees in public places. but rocky patel says i being unreasonable. he owns one of the biggest american cigar companies. so look, you must agree that to many of us the stink. this is awful. it's reasonable to ban it in some places. >> it is an art form, a culture that is transcending over generations. once you actually learned how to enjoy a cigar is like enjoying a great bottle of wine in the grid above coffee. really most cigar smokers are very respectful of people, and

they try not to infringe on anybody's rights, but they want the right and privilege to enjoy a cigar. this is a legal product, an art form, it's an wonderful, and something you need. we can enjoy them in cigar lounges, i can enjoy them in florida on the beach is fun not sitting next to anybody, not infringing on their rights. a great concept. john: there are reasonable air pollution rules, noise pollution rules. you don't have a right to be a public nuisance. these can be a public nuisance. i live in manhattan. one guy on one block is offending lots of people on that block. >> you mean beyond all that toxic pollution and bus pollution and everything else. john: yes. >> certainly be able to go ties cigar lounge or store and smoke and it and if you decide that you want to have a restaurant or you just want smokers smoking cigars, you have the perfect right to choose whether you want to patronize the rest are not. john: this is one area where we

are in agreement, and let's explain this. there are places called if cigar lounges were consenting adults go in an enclosed space so i not exposed and the people that don't want to be there are not exposed, as some places want to ban these? >> we have state of the art ventilation. i open the place colbern in naples in the florida. we spent a ton of money to make sure every 60 seconds we have 100 percent fresh air. you have cigar stores and wonderful lounges across this country everywhere. people should be able to enjoy a premium cigar and enjoy this. you know, you have cigarette smokers smoking cigarettes and cigars smokers prefer cigars. unfortunately we are totally under assault. this truly is a labor of love, an art form, and people enjoy it. if we are not in french and others we should be able to have the right to enjoy great cigar. john: san francisco bans endorse a garland's is entirely. boston's old cigar bus they have to in years to close. >> in the city of new york,

unless your grandfather then you can smoke anywhere else. you can't open up a cigar lounged. these lands is create a lot of jobs. the cigar industry just in the united states is is possible for about 85,000 jobs, and with this new impending fda regulation when the fda is looking to regulate something they know nothing about, we're looking at absolutely destroying all these jobs and an industry that is really -- john: what does the fda wants to do, and how would that destroy jobs? >> regulate all tobacco and unfortunately cigar's happen to be the unintended consequences. you have, for example, this is a blunt. it's called a cigar because right now the definition of a premium cigar is very broad which includes products like this, which is just a tobacco leaf like this that comes in a plastic tube like this and you just unwrap it and guess what you fill it with, marijuana. they are after products like these.

unfortunately we fall in the same category because the definition is too broad. the we have done is introduce legislation to narrow the definition of what a premium cigar is. it has to be all natural tobacco , exxon of pounds per thousand. we have right now 160 co-sponsors in the house supporting this legislation to give premium cigars an exemption from fda regulations. john: this is why i say that the capitalists of the worst enemies of capitalism because here is this guy saying it's okay to regulate the other guys, but we premium guys should have been exempt. >> we are all for deregulation of everything. we don't want -- i'm just pointing out that we have been to be falling as the intended consequences something they're after, but it is very hard when the fda is down your throat and they might virtually destroy your entire business. this beautiful box would have 75 percent warning stickers, the new warning stickers on it. every time i decide to make a

blend that would have to submit it to the fda to make sure they would pass the blood so that i could actually have this. john: to stop the. >> i would have to go through case studies like a pharmaceutical drug and it would cause me a million and a half dollars. john: richard blumenthal says cigar's pose a serious threat to public health. >> well, unfortunately nobody has done the research. they're not educated. they have no idea about the concept of cigars. this is something with you are a blue-collar worker, whether you're a ceo, doctor, get together. john: they do stink. the government says they can't tell the difference to train consenting adults in a cigar lawns -- lounge appalls me. thank you, rocky patel. next and the people who sell marijuana. my next guest sold it for 15 years. then a few months ago the fed's game. the. ♪

♪ john: the biggest illegal job in america today is drug-dealing. dealing, interesting that word, dealing. it sounds nasty. i would buy beer at a 711. no one calls the clerk there up your dealer or a cigarette dealer. they just call him cashier or salespeople. but marijuana sellers are dealers because pot is illegal. of course the fact that it is illegal doesn't mean it isn't sold. a lot is sold, $65 billion worth of illegal drugs of all kinds are sold every year, according to the drug czar's office. and one of the people who sold the drug until recently is live at shock, so what to do so? >> i was licensed in 1997 to some medical marijuana as a not-for-profit charity to work

with all these incredibly ill people. john: in california. you were one of the first dispensaries. >> the first lessons dispenser in the nation. john: useful for 15 years, some 3,000 clients, you call them patients. >> death that a qualified basis under california law. john: come on. a lot of them are just kidding a friendly doctor to write a prescription. >> that is not the case. we have a horrible epidemic. a marin county, highest rate of breast cancer in the nation. we had 50 percent of our patients were women in the middle. they absolutely needed medical marijuana for chemotherapy. a safe and affordable place to go. john: we can argue about this, and i would argue that anybody ought to get themselves whenever they want because you want to own your own body, but that is for another show. you have been a good business person in your community. the mayor of your town says you

have been great. however, you are near a playground, and your children. >> a ball field not use nine hits and runs out of the year. then there were ballgames. we were under all our rules, 100 roles that we had to live by. we had to close during the ball games. we are not open. the rest of the time the ball to was empty. not used. this little ball field. john: the mayor says proximity of the location has never been the cause of controversy in the community. >> no complaints, no problems. in fact, we get rid of the street dealers, and children have less access to medical marijuana, any kind of marijuana because the medical marijuana facility had a nice safe place for the pages to go and there were no more street dealers. john: explained that because is counterintuitive. people think you legalize marijuana and there are more street dealers. >> no. we get rid of the street dealers. that was the whole thing. john: because they're is a legal place, no incentive to stay connected --

>> having the patience have a nice place to go to that was regulated and audited and completely transparent took away the street dealers, able to lower the prices, make a safe place and there was nobody on the streets. in fact, patients would chase this does away because they didn't want to read not permit. we cleaned the streets by having the facility there. john: president obama running for office aid i'm not going to be using justice department resources to try to circumvent state laws on this issue. federal law, marijuana is illegal, state law in california, it's legal. last fall the justice department held a press conference for u.s. attorneys made it clear that no matter what state law says federal law prevails. >> commercial marijuana operations are illegal under federal law and we will enforce federal law. john: california's laws have been hijacked by people who are in this to get rich and don't care at all about sick people.

john: you hijacked the law to get rich. >> unfortunately i have no money. i'm a patient. and never did make money. i had a charity. john: to pardon of justice since a letter to your landlord you must be a victim than 44 days. >> the move to pick -- take the property immediately. we had three offices, 8600 medical records. all of these zero words and all of the records and everything. here we are at the time of foreclosure, 3,500 patients who all now are crashing medically. we have overloaded public health services to members is their rooms, thousands of my people crashing defeat because he can substitute quality stabilize medical marijuana for synchronous stuff from the street dealer. also, the street dealers are back in every corner. a tragedy in the crisis in a madhouse. john: protecting us from violence.

>> where there is marijuana there is money, and lots of it. these places are prime targets for robbers and violence. john: the way she says money, it's like money itself is evil. >> we had never any violent instances. because i could call the police, it went away. as soon as you're licensed. no problems. call the police and take away the bad guys like any other business. john: de say banning this is good for the bad guys. >> oh, yeah. drug cartels are back. street dealers, the police are going crazy. john: the planning commission is with you, the mayor, the town council. same we have -- closure would have the paradoxical impact of decreasing public safety. >> it absolutely did. a terrible crisis. unnecessary and mean and wrong. john: mean and wrong. that's what government regulation often does. thank you. i'm sorry for what you had to go through. sorry for your patience. coming up, business is selling

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john: what are you allowed to do on your property?

in america fewer things all the time. one woman bought the house to turn into a wedding reception center and bed-and-breakfast because she cannot have a business and her property. and he started to farm oysters and his friends said their girlicious so he increase production but now even though they are formed on his property and seven state licenses the county charges him with illegal farming. we have shelley and craig. what is the problem? >> they have good zoning ordinance 450 pages. john: on top of the federal laws, state laws, city and county. >> they came up with the

zoning ordinance they could prohibit our oyster farm although we could have a pig farm, buffalo farm, any type of agriculture. john: licensed for agricultural and livestock? but oysters seems less of a threat to. >> but they clean the day. we're in this situation it must be cleaned. >> each oyster cleans 50-gallon of seawater per day. that is how we grows. there is a purification. john: we called the county administrator. here is the law. here is why he cannot have

producer -- roasters might producers still has no clue after talking to him 12 minutes. >> if you have enough laws on the books you can find something anybody want to accuse of a crime there is a lot out there. that is what they have done. john: if not listed that shall not be permitted unless the zoning administrator says it is okay. >> that is the china provision. if it is not listed if you want to do something, although other wise is legal or not prohibited because it is not listed, you cannot do what unless the administrator says you can.

john: it gives them power. shelley, you buy a big house, 10 acres, you have grindhouse. >> 13,000 square feet. it is a mansion. a beautiful property. you might find it in that east coast but not in arizona. john: you want to use it as a bed-and-breakfast and have weddings for you assumed that you could? >> we had to get a special use permit. but the property was in foreclosure. which trees were dying, the landscape was dead. the house was in disrepair with the number of break-ins, vandalism.

we saved it. we rescued it. john: you say we want to have weddings? they say no because it might bother the nabors? >> we went through year and a half with city appointed staff work the regulations ada restrictions, fire suppression. john: even a traffic study. >> $3,000. concern was we would increase traffic. john: and the road handles 35,000 cars per day. >> there is no entrance other than that may not arterial road. we did a sound study. people came out on a holiday weekend 10:00 p.m. to do a

baseline then compared to the sound levels of hundreds of people talking at one time. john: we talked to a local councilman he thinks he is doing a good job. i visited the site twice. i met with them several times. we had a five braiding. we decided it might bother the nabors but the fact you had to go through with that. >> we work with the staff and got full approval and recommendation saying this was a viable property and it would make a great business and we had complied with the concerns of the neighbors. the staff regulates that. they heard the opposition.

to have less than one month with the side -- city council was a little confusing and frustrating that they said no. john: it is sitting there and the. john: 10 acres of property. george mcgovern, liberal democrat tried to do the same thing and it was a shock to him. he said it wished during my years in public office i have the first and experience difficulties business people face. we choke off these opportunities. a presidential candidate that they should all try. >> the federal government says aquaculture is agriculture. the state says local church

is agriculture. john: account the says no. has phoned to be agriculture. but somehow oysters how is that possible? i wish you luck. the obama epa says it has the power to regulate how we exhale. next.

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that doesn't taste gluten free. together, the elements of science and the human element can solve anything solutionism. the new optimis with the fidelity stock screener, you can try strategies from independent experts and see wh criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. john:. >> climate changes serious. virgin. wrong. john: i have heard that for years. i am skeptical the threat is

surging a. there is a threat. people say they are worried. after obama's took office ruling carbon dioxide is a day -- do interest chemical and needs to be regulated by them. businesses say that makes thousands of jobs illegal. let's go to a legal expert. let's not. let's go to a weather expert. roy spencer he is funded by department of energy, an asset, you collect measurements in the atmosphere? >> one-third of a century ago monitor temperatures from satellite. >> it is warming? >> has over 33 years. but then it stopped over the last 10 years which is a dirty little secret.

john: greenhouse gases are a real threat. why not regulate carbon dioxide? >> i am lukewarm. one of the scientists that think adding co2 should add some warming but how much? some think is dangerous. and controllable warming in the future but we think it could be natural and we could see little warming. it comes down there is enough to human health and welfare. john: you don't think there is? >> no. from the economic standpoint, if you reduce her images

produced, virtually all human activities require co2. carbon based fuel as a byproduct, no easy way to remove it. coal-fired power plants, there is no way to get rid of the co2. >> shutdown civilization. then we outlaw all jobs not just another segments but everything. john: if we could do this, would make any real difference terms of global warming assuming it is accurate? >> no. we talk about forestalling a few hundredths of 1 degree

base on the west's shutting down half of its economy. summon new measures global temperatures, we cannot measure better than that per decade. that effort leads to an and measurable decrease. john: why do they push that so hard? don't they know that kills jobs? >> as the next government employee the first job is to keep your job. you regulate as much as you can. >> we already have some rules. but they want to go further. >> fine particulate matter those that are much smaller of the with the reason men

her. >> there is no safe level even bet who says there is. >> you gave us this map? >> from a nasa satellite pro fine particulate matter which the epa wants to regulate. the most dangerous amounts is where virtually nobody lives. most of this is produced naturally by nature. >> we have regulations in place and five particular matter has been cleaned up but the epa is on track to reduce it at zero.

it is physically impossible. nature produces it anyway. john: if we have global warming, the catastrophe to shut down the economy, you don't know it will be harmful? >> co2 is necessary for life on earth. co2 in the atmosphere may be good for life on earth and that could be verboten. and objective scientist should look at both sides. and probably to a little bit of warming. >> no benefits to huge amounts of regulation to crush the jobs. my take on illegal jobs and who government sucks the

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57. bill: to start a bank? three desperate of this. so on. although these. all read them all. are you are in big trouble. then got frank. does anyone read all of this? i doubt it. is lifesaver? no. neither do the hundreds of thousands of criminal law but it a few of the rules

are useful but the sheer volume makes us less safe and less free. >> that lets the cheaters hide their cheating and also makes it easier because it gives consumers the illusion see u.s. them government is watching out for you. why some people gave all savings to bernie madoff. but it kills the freedom makes america prosperous. kids are excited about bei being an entrepreneur. >> how much you sell it for. >> we raised $300. service with a smile.

>> what i get older i will have my own business. >> will that be possible? already in the name of safety kids shutdown lemonade stand's gimmickry burn not it was we don't know what it was made with and we cannot let you do it anymore. >> that is why mine was a legal. that does not protect us. but diverting disgusting amounts of money to those that accomplish good thing is then they-- these rules torture some people those were persecuted by the epa. >> most of us are lucky enough to escape that kind of abuse but don't build

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