>> thanks so much. >> thank you for having me. >> all the best. "a christmas story:the musical" running at madison sqre garden for three week don't miss >> this wasthe year of obamacare. >> government shutdown. the government shutdown. john: i did notice that spending and i kept going on and poor people helped in our government lied and lied about it. >> no one is listening to your telephone. >> and many policies are eager to go to work. >> this is not the time to e a silent spectator. >> the left was eager to pass more gun control.

>> what we really need are clear goals. and everybody cn complete on the same time. >> this is just what we see here. a new fedel part. ifis just what we see here. a new federal part. if you wanted to get the state and county and city laws, you need to run a bigger building. we are now a ea of government power with ever shrinking islands of liberty

john: how could this be? magically we get more for less and now some of the truth has come out. the cato institute predicted that. >> w are happy to h been proved right. everyone knows that you can't have the government, you can't have government centraplanning create morethins for more people and have it cost less. we could have more stuff for less money.

>> of course it is ging to be more expensive. and what hasappened so far? people don't get that. these priate insurance companie they are making a profit. by having government mandate that the profit isn't is it too much, and organizing things better an it will be cheaper for all. >> profit is not where your payment is going. and when people are not personally invested in what they are buyin. >> my iggest concern is that it's been a disastrous and this is as good as obamacare will

get. and those programs were relatively efficient early on. and now we see that they are bankrupt and the rest of the country. and enjoy it now because obamacare will not get better. >> more americans are understanding this. until they own and control the health care dollars. john: summative videos and some were trying to get otherto gn up john: some don't realizet they are asking people to pay for geezers like me.

>> you think thedisastrous rollout has kind of broken up younger people people like obama, it's like medicare and it's like soci security. systems that are put into place for good reasons, but are screwing poor young people. john: i appreciate what you guys are doing. >> to spend it sely. >> let's move on to government spending. inhis year we had another partial gornment shutdown in e mdia suggested that se may not survive. >> a government shutdown could put those at risk. >> is not responsle. >> has already been cut to the bone.

>> there are no more cuts to make >> we always ge into this debate of what should we cut. and it detracts from the larger picture. because in the end that is not what is driving us down. it is the entitlent spending. and the research we conducted indicated that there's a wide appeal for entitlement spending and spending restraints. and i think of the politicians actual thought about it in those terms, they would have a policy. >>f flation goes up, it could raise the social security payment? john: what do you think people are thinking? >> i think people reize that now that people are investing in 401k plans and we don't have that reliance on are heavily run by government entitlement programs. >> it is not a retirement plan, it takes money from young por people. >> would be mean not?

>> and i think that -- you are not getting a payout that is tied to what you put in. >> when i alk to people, some say government is too big. >> then i find it upsetting. >> they don't know. >> i do want to pointut a few people. they were quick to maintain this. >> what about the people that need them? >> that is what the state is for. >> anything non-authorized by the constitution. >> i am a poor person, i would find a way to at.

>> i haen't heard people say this until thisecade. this is a new concept. >> it's actually really fantastic. one of the great this it doesn't come out of this is that they crowd out prive institutions and private charities that oterwise would come in and help people. and of coue we dn't want t do it alone. we want to help people in need. and these people are recognizing it and saying that the local church is a much better option. >> the next topic, and tey find. all hree of you say that this is one of the biggest stories of the year. but i just don't get it. i assumed that spying was going on in our polical enemy somehow ead mike e-mal. and i made this list of a hundred things i hate more about my government then nsa spying.

libertians trust me, they call me disgusting. and so please educate me. >> i think that you are part of this. they think the worst of government. they think the wor of centralized power to begin with. reason why the revelation about broad-based, widescale surveillance by the government of every transaction that you are having, it freaked people out. it is because that is not what the government h been saying to them. and tey havebeen talking about we are not looking at your phone calls or your internet browsers or any of that. and it turned ut to be wrong and these are thingsthat outrage people because it is such a disconnect between the public face of government and what it does.

and so suddenly they are spying on all of us. it is and his terrorist or foreign leaders. i don't think americans could understand tha that is why there has been this huge eruption about it. >> what kind of huge eruption? and certainly among journalists and all of the wired citizens in the country, lots of inteet outreach. and has a cost and he won an eltion? well, we haven had an election sincethis came out. but how does it cost the government a lot of the trust at it had built ? >> yes, the gallup poll has found. something like 65% of independen believe that the government has to much too much power and i think that is a tribute otol not only t the

demonstrable faiures of vernment policy,ut these disclosures. and people are bothered by tis. >> there was a fear that's another is a realization. there is a military information complex. john: people o want o kill us. these are big data sweeps. >> weneed to have targeted searches. >> they put it in the constitution. they said that we have reason to believe that in this address ere is terrorist related activity.

>> w are alwayslaughing in the shot of government secrecy. and you have to trust us when we say that we want to do this. and they sa this is how we use the data in those ases do not rely on data sweeps, but where you infiltrating known terrorist we are never going to collect everything, and then we will have your air is wrapped up with a bow. >> so we know that they are

serial liars about this. john: coming up ex, his new idea, freedom zone. and more of the good and the bad and the ugly of 2013 we will have the next. [ male announce] this store knows how to handle a saturday crowd.

♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone the right track. the pow tools iroduce themselves. all the bitsand bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of erything. so everyone goes home happy.

mm. mm-hmm. [ enne revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz your wish list at the wintervent going on now -- but hurry, the ofrs end december 31. [ sant] ho, ho, ho! [ male announcer ] lease the 2014 glk350 f $419 a month at your local mercedebenz dealer. [ male announcer ] how could a lunous protein in jellyfish, impt life expectancy in the u.s., real estate in hong kong, and the opts industry in germany? at t. rowe price, we understand the connections of a complex, global ecomy. it's just one reason over 70% of our muafunds beat their 10-year lipper average. t. rowe price. invest with confidence. request a pspectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

>> this is not the time to b silent spectators to slaughter. >> we can stop children from being gassed to delta. john: they were, and adults, we did not intervene. what happened? we're back with our panel. what happened? >> what happened, the country did not want to go to another war in a muslim country. the president, and secretary of state, a lot of republican leaders made this aument. it is apelling case, terrible things happening in syri president said i don't need congressional other to do this

-- other to do this there was enough push back on that he said i'm going to congress to ask. it was clear congress was listening to the people, the people did n want to go into this war, they dropped it. >> rand paul happened, his push back, his leading the fight against syrian intervention gave congress a spine for the first time arguably since korea. they have always gone along to get along, that ended. 12 years in iraq, and 12 in afghanistan, and everywhere else, good luck with this o, we're not supporting it. john: buwe do have clear interests in syria. >> we do. that is the eas pt, keeping chemical weapons out of the hands of terrorists. the harder parts what you do about that? a tyrant on one side, and a rebellion camp myselfed by al

qaeda on the other side. john: we dided not to do anything, you say good, all of you? >> right. >> probably. john: a probably. gun control, after newtown school shoing a big push for gun control. here in new york city, my friends, my own wife, said, how could you not say there should not be more rules against these weapons, yet no new legislation resulted. so what happened? >> i think what happened is that people recognize that you don't make goo laws in the wake of a tragedy. which sandy hookas. john: people recognize that? americans ? >> yes. in this case, as you said, major gun control legislation did not go forward. >> ty are pa are - the media are saying passa. >> people uerstand that over the past 20 years or more, there have been liberalized gun laws, more people can own guns and

carry them in moreircumstances across the country, at the same time gun violence has gone down. >> guns are a cultural issue. east coast elites, liberal elites they don't like guns they don't know guns, in heartland of america, a lot of people use guns, mostly responsibly, they can give tm to theer teenage kids, teach them to go hunting, a lot ofhe bloomberg hollywood access they don't understand that. they are surprised when the terrible things happen. and it does not cause the american people to say, we need to crackdown on guns. in fact, o opposition to strickr gun control has been going up. john: 2013 the year a major american city declared bankrucy, i feared detroit is just a little bit ahead of the rest of the country. >> one of the problem for deetz deetztroit you had politicians d

union leaders, rubbing each other's backsnions kept politicians in, and then they rewarded them with kushy pensions. john: indeed teat they kept electing politicians sayg they would fix it now, instead, cnn got this one right. >> they turned cityall into a denf bribes and kickbacks making themselves rich. john: former mayor, charged taxpayer for 54 trips, lim rental, and nightclub charges, but some 50 cities have gone bre since 1980, usually it is just giving. %-money from unions and uonsing gets money from politicians, they sit down and engage in hard bargaining, that is where detroit isheanary in the mine f a lot of american

cities and states. >> it catches up with people, hopefully, other cities will arn fro detroit and mend their ways. john: you pointed out in cities and ste government, this groupon attitude, y can get a dollar but spend 60-cents. >> as long as you may 60-cents and good a dollar's worth of persevered goods out of, that you want more. this is happening on federal level, government brows -cents of ove colo over dollar t spends. but we have to get out of that mentality, you cannot get a bargain for ever. john let detroit be th a lesson. in the show, i puto my santa hat, tell you who was naughty and nice this year, good news about the year nt, we ask you, to vote on what you want our panelists to discuss. we'll tell you which topics get to the most votes when we return. this is the quicksilver cash back card from capital one.

it's not the "juggle a bunch of rotating categories" card. it's not the "sign up for rewards each quarter" card. it's the no-games, no-messing-'round, no-earning-limit-having, do-i-look-like-i'm-jing, turbo-boosting, heavyweight-chpion- -the-world cash back card. thiss the quicksilver cash back card from capital one. unlimited 1.5% cash back on every purchase, everywher every single day. notell me, what's in your wallet?

but it doesn't usual work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decions. that's health in numbers. unitedhealthcare.

because you can't beat zero heartburn. woo hoo! [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. open to innovation. open to ambition. open to boldids. that's why n york s a new plan -- dozens of tax free zones all across the state. move here, expand her or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com.

john: on facebook we asked our audience to vote for the top us would like oranelists to discuss, overwhelming winner, common core. most of america does not know what that is, they should government plan to make sure every government school has same standards. >> that is where common core state standard come in with the same rule everyone can compete on the same staircase. john: sounds like a good thing? >> really, why. centralization. all children are different. states have dftz po department population, a small group of eleetzists in washington want t impo a set of ruling on schools in 15,000 school

districts across the nation. >> a electri a longerm plan to centralize -- >> don't we need a standard test, can't we see is the kids learning. >> we have standard tests there are plenty, beses, you say standard tests, there is no standard test for what a tv show or what a smartphone should look like but what people are willing to buy. >> in theork place we allow people flexibility, to have chaired jobs and entertainment, they buy and watch what they want, this is so old fashioned. why -- >> because government knows best! don't you know that. >> finally, good news this year, you say there is some stuff we shou celebrate. >> there was progress on marijuana freedom. cup evercouple of sted. and there was progress toward

marriage equality, they did not come from washington, they came from the people and the state and in the world, economic freedom continues to increed. there is a - >> we fell in the ranng. >> in the world as a whole, a slow steady progress, toward more economy freedom. john: hurray for the world. >> despite common core story, i think there was a lot of wins r educational freedom with new tax credit programs, and numeroustates i alabama, indiana, iowa and others, and education saving accounted expanded and voucher acounts expanded. >> the single biggest story tt is a true game changer i edward snowden revelation that bills on things done earlier by anonymous and wikileaks and other agency. >> there is a different grammar to running governments now,ou

will be found out wha found outo people, i lk forward to when this type of revelation saleherred into things like department of agricultural subsidy programs, we're at very beginning able to the leave a lot of gernment people shaking in their boots. john: pole shows, pew said 19% of the people tst the government to do what is right. just about all or most of the time. reporters wringing their hands we're losing faith in government, i say yippee, they are finally figuring it out. i was thiing about how 22% of americans identify with the tea par it is understated. i actually feel cfort in that, knowing almost a quarter of the population top identify with the movement whose goal is to rein in government. john: thank you. nick, sab reason adavid, coming up, some new ideas from senator

nd paul. once upon a time, an insurance clerk stumbled upon a cottage. [knock] no one was at home, but on t kitch table sat three insurance policies. e firshad lots of coverage. the second, only a little. but the third was... just right bear: hi! yeah, we love visitors. that's why we moved to a secluded house in the middle of the wilderness. just the right coverage at just the right price.

john: in 2013 our rulers added to thi pile of rules we muftz must ebamustobecause together they strong else life. i was delighted when a lawyer i barelynew, suddenly erupted with statements like this one. >> this isn agenda of control for its own sake. that is why regulators do what they do. john: control for its own sake. at they are not power frequents? >> i'm guessing have you not dealt with many bureaucrats they like rules they live to enforce rules. john: that was part o myself tv

special, war on the little guy on fox again soon, nowhe star. of this jeff rose is bk, to tell us about 3 new assaults on the little guy. this new focus onood? >> right we have a new food freedom initiative. about grassros movement. people who want to make and sell simple wholesome tasty food, and mile high wall of regulations they run into trying to do that. john: food freedom let's talk abt your first case, you represent small farms in oregon that sell unpasturized raw milk but are not allowed to let people know about it. >> i'm not allowed to put up an ads in the local health food store or newspaper or go to a feftfestiv and pro most promotee parliament.

>> what is the logic? >> there snow logic -- there is no logic. >> bureaucrats, they would talk to us, they say this is in litigation. >> the bureaucrats think that food thattpeople have eaten for thousands of years just is note safe. that drinking waugh milk is like -- raw milk is like juggling hand gnades. john: i think they have a point. but you should be free to -- if you are allowedo sell it you should b be allowed to tell people. >> there are people who want to drink raw milk,hey should be able to do it. john: next case. do you have a vegetable garden? hope you don't have it in your front yard in miami shores florida. this couple had one for 17 years, they grew onion, pepper, let uslettuce,his year local government said rip your garden out. >> have you have garden gnomes

and pinnapples and patchys b you cannot have carrots, washington was a farmer. they did not fight war so people could have a government that will not allow to grow carrots in your own land. >> this is jane, jane bakes cookies, and cakes, and breads, and scones, jane bakes the treats in her clean company 18 at home -- kitchen at home, she takes them to local farmer's market. they are a hit. this is a bureaucrat from like smallusinesses like jane,t when customer want to place special orders minnesota said, no. maybe jane could sell her treats from he, not going to happen. john: they are worried about od safety. >> if bureaucrats had theirir w. all we would do is eat pab lem

that issr esterste steve fisher. >> they awh allowler to sell at farmer's market but not other places. >> if you want to sell your food, and people want to buy it, it should not matter whether it is a farmer's market or amazon.com. john: and at farmer's market she cannot make more than $5,000 a year in sales. >> that is $10 a week, you can have a job but you can't make more than $ 10 a week at it. john: he has interest from stores, job sites, scial orders, catering jobs. >> can't d it legally this is whatmall business entrepreneurs, not just food area, run into. this is why the institute for justice is fighting back. john: department of reaction in minnesota said we cannot comment

because of the lawsuit. when you take these cases do you tell people like her, go ahead and sell it, or say, stoppuntil we w our case? >> usually we tell them you better stop until we win the case, if they are going to get in serious trouble. >> thankou, jeff rose. coming up, santa. will tell us who was naughty and nice this year, but next, senator rand paul, he didn't think it was right wn pple earlier this year asked the president, when is it legal for america to kill someone with a dre, the president would not give an answer. so senator paul stood up on te floor of senate and tracked. and talk- talked and talked until we go thep an answer, a gd answer? i'll ask the senator about that and what his critics say next. >> rand paul is not a flawed messenger on this subject, he is

a ridiculous, sick, paranoid messengeger on this subject. in todayarkets, lot can happen in a second. with fidelity's guaranteed one-second trade execution, route your order to up to 75 market centers to look for the best possible pric-- ybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. just by talking to a helmet. it grabbed the patient's record before we even picked himp. it found out the doctor we needed was at st. anne's. wiggle your toes. [ drdriver ] and it got his oky on treatme from miles away.

it even pulled strin with the stoplights. my ambulance talks with smoke alarms d pilots and adiums. but, of course, 's good listeneroo. [ fale announcer ] today cisco is connecting the internet of everything. so everything works like never before. ou can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.

be one this year would have been worse fo liberty of her we not for a few freedom fighters who push back against big government. senator rand paul of kentucky. a filibuster over americans nd the joint policy. why is this? >> akind of a stickler for the bill of rights and i think that we should be innocent and presumed to be innocent until found guilty by a court of law. our founding fathrs thought this wasmportant enough to enshrine it in the bill of rights. so i was very worried that the president was going to say, okay, i can kill americans without any kind of accusation and i asked him repeatedly. and then finally we had a filibuster and it was like pulling teeth to get him to admit. john: did he answer personally.

>> presidents don't like to admit any limitations on their authorit. >> i never thought the president would do this, but i thought it strange that the president would noadmit that he did not have the authority. they are about the rules that bind president annan peope. and we really don't g n

ang, we get it over. so we really do want the bill of rights to protect us at all times. jo: many say it is that inteally. t john mccain said ths. >> needs to do more than firing up libertarian kids and their college dorms. >> it did fire up libertarian kids. i thought that was great. stand wit him on twitter, it's about. but you worked with senator john mccain. how is that going? >> we have a good personal relationship and i respect him as a war hero. it doesn't mean it is always right, but he deserves our respect and others for his time spent as a prisoner of war. but one of point of view is that if you are deemed to be

dangerous, course we can't incarcerate you with no trial and no attorney and no charges. in my response to that is that it begs the question. who gets to determine whether or not you are guilty you of something? the government has criteria that says that you are sspicious if you like to pay cash at the store. if you have missing fingers, stains on her clothing, or have changed the color of your hair. and that might include quite a few people in our country. you don't have to buid back very far to see the governme abusing its power. the conservatie groups, the religious groups, they were targeted for their political beliefs and given dferent types of treatment by the irs. and every cell phone call in americ is being ept the records medicine analyzed by thegovernment. and that goes against the founding fathers and what th talked about in e amndments.

john: they are not listening to the case. >> it's none of their business and i should not have to justify my privacy to anyone unless they i am an inteational business person who deals with peoppe in sweden. and they sayhat it is open. or maybe has a personal relationsh that they don't want to ta about. and i thinkwe haveet that lapse. john: these could be an option for places like detroit. >> inste of asking houston to bail out detroit, but we do is

help detroiters bail themselves out. and those who pay more taxes will get more back. and those are e businesses that have already shown that they can get customers to vote for their business on a daily basis and it would leave over a billion dollars in detroit, not sending it to washington, and i think it's a kind of free-market stimulus that would actually work. john: not jus detit, but the same that parts of china have tried as well. >> just come i think it's good that republicans can be for something consistent with their beliefs that would help people in need of help. john:thank you, senator rand paul if you ke to learn more, i posted a link on my twitter page at fbn stossel. and coming up next, getting out my sta ht and mysecret list as to who is nughty and nice and 2013. and 2013. that is coming up [ male announcer ] e new new york is open.

open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, es... we're open to it. start a tax-free sine at startup-ny.com.

you can separate runwayridi. (voseeker of the sublime.ro. from fason that flies off the shelves. and you...rent from tional. because only national lets y choose a car in the aisle... and go. you caeven take a full-size or above,nd still pay the mid-size price. (natalie) ooooh, i like your styl (vo) so do we, business pro. so do we. go national.o li a pro.

john: okay, it is time to open my book and my report. who is naugh and whois nice? who gets lumps of coal this

christmas? well, nancy pelosi, because she said that govrnment does not ve a spending problem. andshe also said that govement cannot spend any less because the upboard is bare. >> no more cuts to make it, it's really important that people understand that. john: o more cuts? they spend more than 3 trillion and that is why it puzzles me that the president says over the past twoyears he will reduce deficits that more than $2.5 trillion. more than two thirds of it through spending cuts. john: spending cuts? no, they didn't cut muchch of anything. the deficit decreased becase of the blowup stimulus. and the president proposed increasing spending by less than he wanted to. it's's not a c. and also tis being said about obamacare.

>> every time they have pricted something not working, it has worked ♪ ♪ john: hardly. they applaud, but it didn't work and that's when they postponed a mandate. the prblem is that we have a government that is soig and so powerful and so expensive and fast that cannot adequately be supervised. >> and senator mike lee is on my nice list for pointing that out andavid axelrod agreed with him this year. so he is on the niceide of is as well. along with rand paul, because he demanded that the president come clean about drone strikes. >> i cannot sit at my desk quietly and let the president say that he will kill americans on american sol, those who are not actively attacking a country. john: the shock that asenator has to say somethinso obvious.

john mccain, because after the filibuer that he called libertarians a wacko birds, and chris christie, becaushe said this. >> this strain of libertarianism that is going throh both parties right now and making big headlines. i think it is a very dangerous ought. >> well, it's big government is dangerous. and a lump of coal to governor chris christie. but nice gifts for democratitic senators tom harkin and jay rockefeller. surprise to find thmhere on the nice side of this ledger. and oh, they retire this year. that is good fo all of us. and this town's billionaire mayor, michael bloomrg will retire as well. and that is good because he somehow doesn't understand that government bans the sale of big cups of soda and he said this. >> we are not winning anything. we are just shut entrancing that we want to show you how big the

cup is. you're not showing us that, mr. mayor. government and thomas jefferson were right to show is that it only grows. and we already must obey thousands of pages of rules. >> let's give everyryone a big hand. [applause] >> is magician was told that he was in violation of the animal welfare act because he didn't have a disaster escape plan for his rabbit. >> om now on come you cannot use your rabbiunti you fill out paperwork and pay the 40-dollar license fee and we will have to inspect your home. john: eisai these people these things. >> but they don't laugh ev. it's beyond so you are on the naughty side of this. and actor vin song, from th nice side? coming out in hollywood as a

libertarian. and also fighting for people's rights to sell mistletoe. >> if people want to work, let them work. >> and on my nice list, is this guy, who wrote a wonderful book, no, they can't. in response to government claims that yes, we can do everything. and finally tonight, this was a surprise to e. but th speaker the house on my nice lis. oh, yes, because he said this. >> we should not be judged on how many laws we create. we shoulde judged on how many laws we repeal. >> if theonly would repeal something. and my wish for christmas is that reporters stop whining about what the do-nothing congress does for the least prodtive congrs does. instead, celebrate the fact that politicians not passing more laws mean more freedom for santa and for the rest of you. and without freedom, we do good things outside politics.

that is my good and bad and ugly for 2014 and we wi see you next week ♪ ♪ jeff: this week on "across america." reinventing the american grocery store. ♪ ♪ and an exclusive look at the former deli cle who is the ceo. wecome to "across america." a from the wheatfields of the midwest to hvac and the latest on an icn iconic american brands. a company doing its best to reduce the u.s. trade