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

what we really need are cler goals. and everybody can complete on the same time. >> this is just what we see here. a new federal part. ifis just what we see here. a new federal part. if you wanted to get the state and county and cy laws, you ed to run a bigger building. e are now a sea of government power with ever shrking islands ofliberty

john: how could this be magicay we get more for less and now some of the truth has come out. the cato instute predicted that. >> we are hpy to have been proved right. everyone knows that you can't have the government, you can't have government central planni create re things for more people and ha it cost less. less oey.ve more stuff for

>> of course it is going to be more expensive. and what has happened so far? people don't get that. these private insurance companies, they are making a profit. by having government mandate that the profit isn't is it too much, and organizing things better and itwill be cheaper for all. >> profit is not were your payment is going. and when people are not ersonally invested in what they are buying,. >> my biggestconcrn is that it's been a disastrous and this is as good as obamacare will

get. and those progrs were relatively efficient early on. and now we see that they are bankrupt and the rest the country. and enjoy it now because obamacare will not get bette >> more americans are understanding this. until they own and control the health care dollars. john: summative vids d some were trying to get others to sign up. john: some don't realize that theyre asking people to pay for geezers like me.

>> you tnk the disastrous rollout has kind of broken up younger people people like obama, it's like medicare and it's like social security. systems that are put into place for good reasons, but are screwing poor young people. john: iappria what you guys are doing. >> to spend it wisely. >> let's move on to government spending. in this year wead another partial government shutdown in the media uggested that some may not rvive. >> a govrnment shutdown couldld put those risk. >> is not rsponsible. >> has already been cut the bone.

>> there are no more cuts to ma. >> we always get into this debate of what should we cut d it detracts from the larger picture. because in the end that is not what is driving us down. it is the entitlement spending. and the research we conducted indicated th there's a wide appeal for entitlement spending and spending restraints. and i think of the politicians acally thought about it in those terms, they would have a policy. >> if inflation goes u, it could raise the social security payme? john: what do you think pple are thinking? >> i thi people realize that now thatpeople a investingn 401k plans and we don't have that reliance on are heavily run by government entitlement prrams. >> iis not a retirement plan, it takes moneyfom young poor people >> wou be mean not?

>> and i think that -- you are not getting a payout that is tied to what you put n. >> when i talk to people, some say government is too big. >> then i find itupsetting. >> they don't know. >> i do want to point out a few pele. they were quick to maintain this. >> what abou 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 eat.

>> i haven't heard people say this until this decade. this is a new concept. >> it's actually really fantastic. onof the great things it doesn't come out of this is that they crowd out private institutions and private charities that otherwise would come in and help people. and of course we don't want to do it alone. we want to help people in need. and these people aecognizing itnd sayin that he local church ia much better option. >> the nexttopic, and if they find. all three of you say that this is o of the biggest stors of e year. but i just don't get it. i assm that spying was going on in our political enemy somehow read mike email. and i made this list of a hundred things i hate more about my government then nsa spying.

libertarians trust me, they call medisgusting. and so please educateme >> i tink that you re partof this. they think the worst of government. they think the orst of centralized power to begin with. reason why the revelation about broad-based, widescale sueillance by the government of every transaion that you are having, itfreaked people out. it is because that inot wha the government has been sang to them. and they havebeen talking about we are not looking at your phone calls or your ternet browsers or any of tat. andit turned out o be wrong and these are things that outrage people. because it isuch a dconnect betwn the public face of government and what it does.

and so suddenly they are spying on all of us. it isand his terrorist or foreign leaders. i don't think americans could understand that. that is why there hahas en this huge eruption aboutit. >> what kin of huge eruption? and certainly among journalists and all of the wired citizens in the country, lots of internet outreach. and has a cost and he won an election? well, we haven't had an eection since this came out. but how does it cost the government aot of the trust that it had built up? >> yes, the gallup poll has found. something lie 65% of independents believe that the government has to much t much power and i think that is a tribute otol not only to the

demonstrable faiures of government policy, but these disclosures d pple are bothered by this. >> there wasa fear that's another is a realizati. there is a military informatn complex. john: people do want to kill . these are big data sweeps. >> we need to have targeted searches. >> they put it in the constitution. they said that we have reason to believe that in this address there is terrorist related activity.

>> we are always laughing in the shot of vernment secrecy. and you hve totrust us when we y that we want to do this. andhey said this is how we use the data in those cases do not rely on data swes, t where you infiltrating known terrorist we are never ing to collect everything, and then we will hav your chai is apped up with a bow.

>> so know that they are serial liars about this. john: coming up next, hisnew idea, freedom zone. anmoref the goo and the bad and he ugly of 2013. my customers can shop around. but it doesn't usually work that way with health care. wi unitedhealthcare, i get informatn on quality rated doctors, trtment opons ancost estimates, so we can ke better health decisions. that's healtin numbers. unitedhealthcare.

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>> this inot the time to be 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 ouranel. what happened? >> what happened, the count did notant to go to another war in a muslim country. the president, and secretary of state, lot of republican leaders made this argumen it is a compellingase, terriblengs happening in syri president id i don't need congressional other to do this

-- other to do this there was ough push back on that he said i'm goi to congress to ask. it was clear congress was listening to the people, the people did not want too into this war, they dropped it. >> rand paul hpened, his push back, his leading the fight agnst syrian intervention gave congress a spine for the first timerguably since korea. they have always gone along to get along, that ended. 12 years in iraq, and 12 in afanistan, and everywhere else, good luck with this one, we're not supporting it. john: buwe do have clear interests in syria >> we do. that is the easy part, keeping emical weapons out of the hands of terrorist. the harder parts what you do about that? a tyran on one side, and a rebellion camp myselfed by al

john: we decided not to do anythi, you say good, all of you? >> right. >> probably. john a probably. gun control, after newtown school shooting a big push for gun control. here in new york city, myy 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 thatou don't make good laws in the wake of a tragedy. which sandy hook was. john: people recognize that? americans ? >> yes. in this case, as you said, major gun control legislation did not go forward. >> they are pa are -- the medede saying psa. >> people understand that over the past 20 years or more, there have been liberalized gun law more people can own guns and

carry them in more circumstances 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 amica, a lot of people use guns, mtly responsly, they can give them to theer teenage kids, teach them to go hting, a lot of the 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 o opposition to strir gun control has been going up. john: 2013 the year a major amer city declared bankruptcy, i feared detroit is just a little bit ahead of the re of the cntry. >> one of the problemor deetz deetzdetroit you had politiciand

union leaders,ubbingach other's backs, unions kept politicians in, and then they rewarded them with kushy pensions. john: indeed teat they kept electing politicians saying they would fix it now, instead, cnn got this one right. >> they turned city hall into a den of bribes and kickbac makinghemselves rich. john: former mayor, charged taxpayer for 54 trips, limo ntal, and nightclub charges, but some 50 cities have gone broke since 1980, usually it is just giving. %-money from unions and unionsg gets moneyey from politicians theyit down and engage in hard bargaining, that is where detroit is the cany in the mine for a lot of american

cities and states. >> it catches up with people, hopefully, other cities will learn from detroit and mend their way. john: you pointed out in cities and state government, this grpon attitude, you can get a dollar but spend 60-cents. >> as long as you may 60-cents and good a dollar's worthf persevered goods out of, that you want more. this is hpening on federal level, government borrows 40-cents of over colo over dollt spends. but we have to get out of that mentality, you cannot get a bargain for ever. john: let detroit be with a lesson. in the show, i puto my santa hat, tell you who was naughty and nicehis year, good news about the year next, we ask you, to voten what you want our panelist to discuss. we'll tell you which topics get to t most votes when we return. this is the quicksilver cash back card from capil one.

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john: on facebook we asked our audience to vote for the topic us would like or panelists to discuss, overwhelming winner common core. most of america does not know what that i they should government plan to make sure every govnment school has same andards. >> that is where common core state standard come in th t same rul everyone can compete on the same staircase. john: sounds like a good tng? >> reall why. centralization. all children are different. states have dftz po department popution, a small group of eleetzists in washington want to impose a set of rulin on schools in ,000 school

districtscross the nation. >> a electri a long term plan to centralize -- >> don't w need a standard test, can't we see is the kids learning. >> we have standard tests there are plenty, besides, you say standard tests, there is no standard test for what a tv show should look like but the market, or what a smartphone should lk like but what people are willing buy. >> in the work place we allow people flexibility, to have chaired jobs and entertainment, they buy and watch wt they want this is s old fashioned. why -- >> bause govnment knows best! don't you kno that. >> finally, good news this year, you say there is some stuff we should celebrate. >> there was progress o on marijuana freedom. cup evercouple of stated. and there was pgress toward

marriage equality, they did not come from washington, they came from the people and the states, and in the world, economic freedom continueso increed. there is a -- >> we fell in the ranking. >> in the world as a whole, a slow steady progress, toward more ecomy freed. john: hurray f the world. >> despite common core sto, i think there was a lot of wins for educational freedom with new tax credit programs, and merous states in alama, indiana, iowa and others, and education saving accounted expanded and voucher acounts expanded. >> the single biggest story that is a true game changer is edward snowden revelatiin that bills on things done earlier bnonymous and wikileaks and other agency. >> there is a different grammar to running governments now, you

will be found out wha found outo people, i look 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 government people shaking in their boo. john: pole shows, pew said 19% of the people trust the government to do what is right. just about all or mt of the time. reporters wringing their hands we're losing faith in government, i say yippee, they are finally figuring it out. i washinking about how 22% of americans identify with the tea party it is understated. i actually feel comfort in tt, knowing almost a qurter of the populationop identify with the movement whose goal is to rein in government. john: thank you. nick, s reason adavid, coming up some newideas from senator

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jo: in 2013 our rulers added to this pile of rules we muftz must ebamustobecause. togetherhey stronglse life. i was dighted when aawr i barely knew, suddenly erupt with statements like this one. >> this is an agenda of control forts own sake. that is why regulators do what they do. john: control for its own sake. that they are not power frequents? >> i'm guessing have you not dealt with many bureaucrats they like rules the live to enforce rules. john: that was part of myself tv

special, war on the lite guy on fox again soon, now the star. of this jeff rose is back, to tell us about 3 new assaults on the little guy. this new focus on food? >> right we have aew food freedom initiative. about grassroots movement. pele who want to make and sell simple wholeso tasty food, and mile high wall of regulations they run into tryg to d that. john food freedom, let's talk abt your first case, you represent small farms in oregon that sell unpasturized raw milk but a 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 feftfestival and pro most promoe parliament.

>> what is t logic? >> there snow logic -- there i no logic. >> bureaucrats, they would talk to us, they say this is in litigati. >> the bureaucrats think that food thattpeoe have eaten for thousands of years just is note safe. that drinking waughilk is like -- raw milk is lik juggling hand grenades. john: i think they have a point. butou should be free t -- if you are allowed t sell it you should b be allowed to tell people. >> there are people who want to drink raw milk, they should be able to do it. john: next case. do you have a vegetable garden? hope you don't have it in your front yar in miami shores florida. this couple had one for7 years, they grew oon, pepper, let uslettuce, this year local government said rip yourarden out. >> haveou have garden gnomes

and pinnapples and patchys but you cannot have crots, washington was a farmer. they did not fight a war so people could have a government th will not allow to grow carrots in your own land. >> this is jane, jane bakes okies, 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 small businses like jane,t wh customer want to place special orders minnesota said, no. maybe jane could sell her treats from home, not going to happen. john: they are worried about food safety. >> if bureaucts had their way. all w would do is e pab lem

that isster esterste steve fish. >> they awh alller to sell at farmer's market but not other aces. >> if you want to sell your food and people nt to buy it, it should n matter whether it is a farmer's market or amazon.com. john: and at farmer's market she cannot makeore than $5,000 a year i sales. >> that is $10 a week, you can have a job but you can't make morehan $ 10 a week at it. john: he has intert from stores, job sites, special orders, cering jobs. >> can't do it legally this is what small business entrepreneurs, not just food areaea, run into. th is why the institute for justice is fighting back. john departent of reaction in minnota said we cannot comment

becausef the lawsuit. when you take these cases do you tell people like her, go ahead and sell it, oray, stoppuntil we win our case? >> usually we tell themou better stop until we win the case, if they are going to get in serious trouble. >> thank you, jeff rose. coming up, santa. will tell us who was naughty and nice thisear, but next, senator rand paul, he didt think it was right when people earlie thi year asked t present, when is i legal for erica to kill someone with a drone,he president would not give an answer. so senator paul sto up on the floor of senate and tracked. and talk -- talked andald unl we go the ap 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 messenger on this subject. my customers can shop around. but it doesn't usually work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatmt options and cost estimates, so we can keetter health decisions. that's health in numbers. unitedhealthcare.

be one this year would have een rse for berty of her were not for a few freedom fighters who push back against big government. senator rand paul of kentuck a filibust over americans and the joint policy. why is this? >> i am kind of a stickler for the bill of rigs and i think that we should be innocenand presumed to be innocent until found guilty by a court of law. our founding fathers thought this w important enougto enshrine i the bill of rights. so i was vy worried that the presidt was going to say, okay, i can kill americans without any kind of accusation and i asked him repeatedly. and then finallye had a filibuster an it was like pulling teeth to get him to admit. jon: did he answer personally.

>> presidents don't lketo admit a limitatis on thei authority. >> i neverer thought e predent wod do this, but i thought it strange at the preident would not admit that he did not have theauthority. they are abou the rus that bind president annan people. and we really don't get an

angel, we get it over. so we really dowant the bill of rights to protect us at all times. hn: many say it is that internally. but john mccain said this. >> needs to do more thn firing liertarian kids and thr college dorms. >> it id fire up libertarian kids. i thought that was grea. stand with 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 espect him as a war hero. it doesn't mea it is always right, but he deserves our respect and others for his time spt as a prisoner of war. but one of point of view is that if you are deemed to be

dangero, of course we can't incarcerate you with no trial and no attorney and no charges. in my response to tha is that it begs the question. who gets to determine whether r not you are guilty you of something? the government has criteria that says that you aresuspicious if you like to pay cash at the store. if you have missig fingers, stains on her clothing, or have changed the color our hair. and that might include quite a f people in our country. you don't have to build back very far to seethe vernment abusing its power. the conservative grps, the religious groups, they were targeted for their political beliefs and givendifferent types treatment by th irs. and every cell phone call in america is being kept the records of medicine analyzed by the government. and hat goes against the founding fathers and what they talked about in the amendments.

john: they are not listeni to the cause. >> it's none of their business and i should not have to justify my privacy to anyone unless they i a an internional business person who deals with oppe in sweden. and they say that it is open. or mybe has a personal relationip that they don't want to ta aut. and i think we have let that lae. hn: these could be an option for places like detroit. instead of asking houston to bail out detroit, but we do is

help detroiters bail emselves out. and those w pay more taxes will get more back. and those are the businesses that have aeady shown that they can get customers to vote for their business on a daily basis and it wou leave over a billion dollars in detroit, not sending it to washington, and i think it's a ind of free-market stimulus that would actuly work. john: not just detroit, 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 eir beliefs that would help people in need of help. john: thank you, senator rand paul. if you like to learn more, i posted a link on my twitter page at fbn stossel. and coming up next, getting out my santa ha and my seret l as to who is nahty and nice and 13. and 13. that is coming up hi honey, did you get e toaster cozy?

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johnokay, it is time to open my book and my report. who is naughty and who is nice who gets lumps of coal this

christmas? well, nancy pelosi, because she said that government does not have a spending prol. d she also said that govement cant spend any less because the cupboard is bare. >> no more cuts to make it, it's really important that people understand that. john: no more cuts? they snd more than 3 tillion and that is why it puzzles me that the president says over the past two years he will reduce deficits that mo than $2.5 trillion. more than two thirds of it thugh spending cuts. john: spending cuts? no, they didn' cut much of anything. the deficit decreased because of the blowup stimulus. and the president proposed increasing spending by less than he wanted to. it's not cut. d also this being id about obamacare.

>> every time they have predicted something not working, it has worked ♪ ♪ john: hardly. ey applaud, but it didn't work and that's when ey postponed a mandate. the problem is that we have a government that is so big and so powerful and so expensive and fast that cannot adequately be supervised. >> and senat mike lee is on my nice list for pointing that out and david axelrod agreed with him this year. so he is on the nice sideof this 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 aerican soil, those who are noactive attacking a untry. john: the shock that a senator s to say something so obvious.

hn mccain, because after the filibuster that he called libertarians a wacko birds, and chris christie, because he said thi >> this strain of libertarianism that is going through both parties right now and making big headlines. i think it is a veryangerous thought. >> well, it's bi government is dangerous. and a lu of coal to governor chris christie. but nice gifts for democratic senators tom harkin and jay rockefeer. surprise to find them here on the nice side of this leger. and oh, they retire this year. that is good for all of us. and this town's billionaire mayor, michael bloomberg will retire as well. and that is good because he somehow doesn't understand that government bansthe sae of ig cups of soda and he said th. >> we e not winning anything. we are just shut entrancing that we want to show you how big the

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

libertarian. and also fighti for people's rights to sell mitletoe. >> people want to work, let them work. >> and on my nice list, it is this guy, who wrote a wonderful book, no, they can't. response to govnment claims that yes, we can do everythng and nally tonight, this was a surprise to me. ut the speakerthe house o my nice lst. oh, yes, because he said this. >> we shld not be judged on how many ls we create. wehould be judged on how mny laws we repeal. >> i they only would repeal something. and my wish for christmas is that reporters sto whining about what theo-nothing cgress oes for the least productiveongress doe. instead, celebre the ct that politicians not assing more laws mean morefreedom for santa and for the rest of you. and ithout freedom, we do good this utside politics.

that is my good and bad and ugly for 2014 and we will see you next week ♪ ♪ watch us. the willis report is next. >> hello. tonight on "the willis report." three days to go before the first obamacare debt by the white house changes the law again we have the latest in custers are screaming mad target is not doing more to help them after a data preach can consumers be made whole? the second busiest shopping day of the season we will tell you where retailers are doing to get you in their store. we are watching out for you. tonight. "the willis report." gerri: