effort for my families. that's it for the show. have a great weekend. we'll see you next week. >> are you a member of the privileged class? you get special breaks in life? politicians say. >> we will all benefit from it. >> all don't benefit. the privileged beefit. >> is there any other large employer that gets the same treatment? >> it doesn't only apply to congress. >> we will be darned if we are going to lose their health insurance because of unintended consequences. >> so unionsave a special

break. >> keep it rolling. >> movie stars and their kids. >> don't let someone tell you that you can't do something. >> which it special rates? so do investors in certain kinds of energies get this? that is our show tonight. ♪ ♪ >> and now it is time for john stossel. >> for the first time most of america's richest counties surrounding washington dc. washington is where you go if you want to show privileges and that is where they dole them out and as government grows washington is also where they say that we are all equal and in this together.

when the government is very vague, that is a loot. >> all of us are equal. hn: what about all of thi writin about communism? the principles apply to america today. the ggvernment central planning hurts everyone a little but rewards people with connection. >> the animals themselves are no better off. john: they were the political leaders and over time hey prospered at the other animals expense. ♪ ♪ john: some are lower than others. today the animals that are more he will than others are washington politicians and their cronies. and those who get close to the

politicians. that is how in the budget deal hollywood film producers got a special break. nascar got $70 million to build a new race track. multinational corporation of offshore subsidiaries got a 9 billion-dollar tax break. and the active part of this is proud progressive who says it is right but who needs help and many need america'stax reforms and they say that we should shrink government so they can't make some animals are more equal than others. do you really want them picking the winners with all of these trillion dollars? >> if we are going to have government and laws, it is absolutely the case that some

old will get some benefits in this. that being said, the impact of governmentis tiny and trivial compared to the impact that the market has that heredity h that the number of other factors have or if you want to be rich in this society, the best way is to be born thattway and you are not born that way marry a rich person and if you do not marry a rich person go into the market and sell goods and services that people want. that will get you more ch than sucking up to the government. john: that is fair, but having government give it t you because you know someone isn't. >> i it is inevitable that if we want government to do things for us and we want roads and bridges and a safety net, sommone somewhere is going to benefit from that and you can't use that as an excuse to not do important things. >> no libertarian other is going to say that we shouldn't have the government involved. the question is can we do maybe

a public and private partnership where they can make their invtments back on the road rather than those who are out there to build the roads. these are the questions we should be asking. john: keep government small so these are in the hands of politicians. and you don't use some notion that this'll be a little had been a little behind toaking the choices are in someone is going to have to build that road and it might be your friend or it might be john's friend. john: what out the nascar track remount. >> i don't know. >> i'm not going to defend every single tax break.

the bureaucrats, these are not folks that we have this war. >> this applies to congress. >> republicans and democrats and we don't want to treat them like the est of the country. so why do we need to be

outraged? >> that's not ow the health care law is written. your employer doesn't give you any more premiums or subsidies for the premiums o your health care costs and that is just a deal and the folks who wrote that law have to abide by it as well. >> labor unions would make obamacare supporters until after obamacare is passed and they read it and discovered some of us will have to pay more. >> we are going to lose her health insurance by a unintended consequences and it needs to be fid now. >> it will exempt the unions and what we just complain about. othersave to pay it. >> this is the way we fight this stuff in a democratic society.

some are smart about maneuvering and at least we are doing this in a playing field. >> it is the cap on halth care benefits. isn't that unfair? i think that the facts would

suggest that this is part of it. it allow these political groups to take tax deductions that are doing political stuff. t's get rid of that and make it clean and me all groups take heir share. >> is that include labor unions? >> just come it doesn't. john: all right, we can agree on that. it would be nice if the taxes were lowered her head certain investors get special privileges if they invest in what politicians call green energy even after the solyndra debacle he told people he was more monegiven to certain companies to pay for research. >> it is too expensive and too risky. thene will all benefit from it. john: we don't so much all benefit from it. certain people do.

it didn't pollut everything. so what we have for alternative energy? >> that is because the private market is not going to bear. >> the mart is demonstrably

>> i gree. the oil companies deliv it. there is something extraordinarily neat about this. a lot of times allowing the oil industry to deduct e same thing that other manufacturers are allowed to deduct as well john: he raised about a hundred thousand dollars and made several businesses to the white house. and this is the guy who is behind solyndra. >> i'm not blaming soldra. their saze bags in every industry.

this includes our sincerity aries and beacon powder and so much, one after the other. >> if you look at these. they are the most open and honest administration in history. >> it's terrible when you read this list of these companies. i think u look at it in a broader context, the failure rate is far less than in the private markplace. >> why s government ensuring myth.

>> many are trying to ain traction as well. >> we want all of those things as well. we are losing the debate because with every debate government grows. hn: coming uu, privileges for moviemakers. movie makers. government compete to offer

special breaks to hollywood to make this movie land less

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we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey. [ female announcer ] the x1 entertainment operating system, only from xfinity. tv and internet together like never before. john: a state of emergency is tom states with better financial

incentives are partof this. can filmmakers go left? california has gret weather. but it also has expensive unit were rules in high tax. so well where should the movie producers now? forty-two states offer movie producers incentives. he has produced tv shows.

>> i thinthey should be abolished. john: why is that? >> they don't make any economic sense. so the state of rhode island got 20 ents for every dollar they spd and they did study that shows that they got 8 cents back for every dollar they spend. john: but they keep spending. >> i have the responsibility to produce the to get movies going. john: they criticize the film tax credit.

>> over 6000 jobs in the past two years alne. it is about people who drem of living and working in their home state and who can't afford to lose. the michigan film tax credit. keep it roling. >> it'sabout people who work in their home state and loseheir jobs. -p>> basically there are incentives that really turns into 42 different solyndra companies over the country. john: do you have a friend? >> yes, i feel like people do let you voice your opinion. i think you continue to work. john: what about stateand

countries too. the producer of vaar. >> know john is a great oducer and if i was in his jewish never do the same thing ultimately it is unfair trade practices. what we should do is abolish all of these trade practices here in the united states. not subsidize other industries that wrrently subsidized. and then penalize countries like new zealand were competing with us unfairly. look at the rest of the world to do it all on a level playing field. the crews and workers and people here in southern california will always win out because we have the best in the world. >> and the only way that they can do.

>> they have to pay for these subsidies. you are an honorable man. john: coming up, celebrating hollywood in the muskrats way. john: but if you are not john: but if you are not privileged, you could lose your

john: your home is your castle. and less government visuals decide that they can do better things with your property for the greater good. a law called eminent domain allows governments to grab private property to build things

likeparks. however lately more politicians are using eminent domain to grab people's land to help privileged developers. ryan briggs from the philadelphia city paper reports on this is here with us. >> a gentleman named rick young essentially lobed local councilwoman for funding and enent domain in an impoverished neighborhood in west philadelphia and he was also a political donor to that same councilwoman.

>> it was handled porly and their obvious ethical conflicts of the city knew about. john: thank you for bringing this to our attention. we might thank you. john: politicallyonnected, but what about the people who own property where the development is supposed to go? the studio is owned by this gentleman and the government plans to tone it down. >> unfortunately the building was up for sale fr 2.2 illion. i have built 10 rooms and artist studios and they are ully lovable. john: this is serious art. >> i have five pieces in the philadelphiaaart museum and other pieces around the world.

john: so the government says that we need a supermarket. >> fine. but i need my studio. you can have my property if my property was up for sale. they could make me a decent author. john: why would they make you an offer for $2 million if you can get his cronies to get it for $600,000? >> it's not fair. johh: we got an answer where they said that we have met with your representatives and we ar working towards a resolution that will accomdate both you and your needs and your desire to bring healthy and nutritious food to the world. >> it is not a food desert. john: that is what they call it. michelle obama talks about it.

>> they have more vacant lots in any part of the city and they decided that they wanted this parcel of land. john: what is this about? >> it's about seizing the land for future development. john: cronies helping other onies? >> they could be. john: coming up, our next guest will defend nepotism. he will defend these privileged brats.

♪ ♪ john: this is a clip from a new tv show called rich kids in

beverly hills. i was raised by imigrant parents who told me they were giving me nothing, you have to make it on your own. and that makes sense to me because america isupposed to be a meritocracy. but adams says that i am wrong to emphasize meritocracy. he is the author of in praise of nepotism. and you are the son of the famous author, so you are cheating. he gave you a break. right? >> that is what you would think. actually my father was terrible with nepotism. and he had no connections that were of any help to me. and even if he had a wooden be the same thing. i try to become a writer in my 20s and iwasn't as talented as my father and i was a bbg surprise. so i went into a related line of work. and the people that hired me felt that not jut my name and

my background and upbringing, the kind f education and the values that i inherited from my therould make a good fit in the publishing business that would be the case. whether or not we consider it to be fair not because someone enjoys advantages due to their birth, we are prepared to take this on an individual asis. so if you are axle ford and you are not very good at designing cars,, you go down in history as an example of bad nepotism. john: so you agree that the stid tv how, the rch kids of beverly hills, they are celebrating their wealth? >> yes, that is wh we call rags to rags in thr generations. >> what you mean about that matter they squander the money? >> yes, it is.

it's cliché for a reason. john: look at these headlines with energy department. nepotism is open and widely accepted. but it is open at the energy department. that is disgusting. >> it's a very old story in american politics. there has always been feeling america that people in politics should be drawn there and not because of trational family values. >> he is the best of i person to run for president, but i hope he won't. the clintons, the bushes, they are just more qualified.

john: there are a million more families in that. >> the public says we don't like nepotism, but we accept these guys. >> we in general condemn it. but on a case-by-case basis and we tend to approve of it. in the new nepotism the ccessor has to prove his worth. john: on to hollywood. actor will smith put his kids in

movies. >> hollywood is a family industry. not just in the profession but in directing and acting alone. >> drew barrymore is the daughter and angelina jolie and jon voight. martin sheen, charlie sheen and emilioestevez. and he and charl are more famous an emilio esteez. so is nepotism working for them? smack it wks in hollywood. but americans are not an envious people. and that is the hallmark of americans and we're perfectly

fine with michael douglas becoming a movie act because he is talented. john: what about how it intrudes on my profession? "the today show" used to be a job you had earned. but is this correspondent earning ? >> we have some first-hand experience. good morning and good to see you at. >> thank you. john: sheis one of george bush'sdaughters. >> really grateful to be here with you. thank you for the opportunity. >> i love getting interviewed by someone who actually understands what it's like. john: give me a break. it's just so bizarre.

>> you agree with his? >> this? >> yes, but my point is thi. if people show that they have some ability once they have received some benefit. then in general the public is perftly prepared to accept it. john: i'm not fine with that, but thank you adam. next, what happens when government tries to cut back on special priviges? sometimes the people who are grown accustomed to the handout riott and in one case jury farmers and in one case jury farmers pour truckloads of milk on the

all right, i kow this isn't any fun to talk about, but we should. ok, so who's going to do what? i'll ck the dead batteries. great. girl: i'll only put what i don't need into a duffle bag. perfect. that's totally unhelpful. no problem. meanwhile, i will try to comfort everyone by speaking in a calm voice. and i'll try to get the generator going without any gas. oh, let's not forget the cell phones, which probably won't work. right. and who is going to handle supplies? i can forget to do a list for us.

thanks, pal. well, i think we couldn't be any ss prepared. i'm proud of you guys. announcer: talk to your kids about who to call where to meet, what to pack. visit ready.gov/kids for tips and information.

john: the u.s. government is ch too big and it's wrong to give so much money to the privileged class when it could be worse. art government consumes about 40% what weproduce. most european governments take even more than they give big bucks to all kinds of special interest groups. and then when our country goes broke and cuts back, this happens.

government workers are being asked work late. and el, this covers you for "the wall street jrnal." all kinds of stuff is going like that. britain gave $107 million to rolls-royce? >> yes, they already manufactured at time of their products in aa. >> the french government not only subsidizes movies made in france, but they subsidize foreign movies if we mention france? smack that is correc there is an elaborate system of quotas and and evaluation to look at movies.

and a billion dllars, 700 million euros this year's. john: some of the tortured script that americans come up with that qualify her as well. here a clip of one american mov. >> that act debates this and then to las vegas. >> i went to see this and i watch the scenes unfold. with french characters appearing and i'm thinking to myself that there is no possible way that this could have come about without someone thinking about the subsidies.

>> brussels the eu subsidies face about 60 billion euros a year. and then there are lots of private for profit companies that owexis solely to advise businesses and individuals on how theycan get these new subsidies. john: someof the subsidies, a hungarian for about $560,000 to develop hydrotherapy for dogs. >> that is crrect. hydrotherapy for dogs. the world widlife fund als go 16,000 euros for effectively a nature appreciation program for italian farmers.

>> they have become more aware of their emotional reactions to it. >> they got this money to help the farmers commune and art of this tax money. >> once these exist, it is time to get part of this. they have finally made some cuts. in francfarmers are one privileged class when they decided to allow me milk reduction, farmers for their milk on the ground in protest. so once ou get your goodies come you get angr when someone wantto take away. >> yes,exactly this is what happens when they get upset. especially a pretty regular occurrence in europe. >> some of the other tax subsidies, germany gives tax

village status to those involved in development of culture and animal protection and sports. doc sports? >> yes, if you are a caliber, you are out of luck. >> and people are okay with this? >> n necessarily. your creditor are not necessarily okaywith it. as seen within the last two years. but if you are someone -- it's actually hard to not ind a way to get a subsidy in europe. i guess people seem okay with it because a lot of times if you try hard enough there is money in ifor you. jn: this is a bad sytem. thank you souch. coming up, a way to cure the culture of special privilege in washington. >> let's move the capital to the to complicate ♪

♪ our time is short ♪ this is our fate ♪ i'm yours

>> today f the first time, most of the richest counties in america surround wasngton the week. john: that is because money gs to where people can grant special privileges. and the rich get even richer. in washington even underpaid worker resemble palaces. this is a teacher union headquarters. we are told tha is worth $100 million in.

>> and they said no, we coudn't tape inside of there. but woudn't care about their brand building integrated wealth. t the privilege oes create much value in and tey just feed off thpeople that do. and if government grows the problem gets worse. what might be done about that. >> a way to carry incredible ineffectiveness or both parties in washington. removing the capital o nebraska and leave the lobbyists and the influence bk east to. >> tt is an idea from the someone was running from the senate. by with less privilege be handed out if congress were in nebraska?

>> we need to leave this permanent bureaucracy alone in ehind. permanent bureaucracy alone in behind. and they would follow the pital to nebraska. >> well, what we need to obviously recognize is the incremental tweaking that won't affect what we have. a river of money flows to washington right now and we need to b talking abou fundamentally about the limited number of constituonal duties ofhe federal government has. this is a mass. >> your commercial is called the outsider. you were chief of staff at the u.s. dartment of jusce chieff staff to a representative and you h a consulting contract with the department of homeland security. you're the assistant secretar for planning athe hhs and you've only been out o washington a f years. so you're just anotherinsider? >> yes, it s a fair question but it's not reaity. i have worked i washington for abt four years. but i am a private sector type of guy and my wife and i are

raising our three kids less than a mile from where i grew up and if you hik where washington is where value is created? we don't believe that a nebraska. the cent oe world of small-town and thefounders believe that everyoneshould think that other state because the private sector is the heart of america. john: there is nothing small town about this new expensive medicare part d. he wrote an op-ed in the .s. news report that i is the answer to health reform. this is another exploding entitlementreform that is wealthier than you are age group and you're giving us more money? >> you are ceainly right. we are guilty of generational theft in america and i have always opposed unfunded entitlement expansins. and i have opposed it from the beginning. t what it has a prt in the do

no is at the very least it has a market mechanism as opposed to just eurocrats setting ices by fiat. but every unfunded expansion is a mistake and we need to get back to budget honesty. john: it's good to hear you say that. thanyou so much. it's an interesting idea moving the capital way from washington. but i don't know what goo it would do to pay tthem, the lobbyist wou move to the new capital. as congressman says it is the lobbyist that are the real problem. >> they are the royalty of washington washington dc. >> congress did it by passing on these laws? >> i will tell you that the real love is on washington dc. >> he says it's on wall street. >> is much more money there. what other politicians don't get is that nomatter how much some wall street tycoon gets, he can't force me to do anything.

there are only two ways to do things in life. voluntarily or by force. washingt is more danrous because it can fore people to give money and privileges. theprocess force us to subsidize. y not paying your taxes. they will eventually show up at your doorstep and if you don't pay they will put you in jail. i don't reallye if wi smith puts his son and his movie or if drew barrymore as the data was a famous actor and that's why she was in the movie et. people olunteer to give money to drew barrymore and willll smith. i get it. the governments forced and that's why it's evil and get even more special privileg to t people behind the velvet rope. contributors and the cronies

and another reason to shrink to $3.5 triion deal that is washington. that is our show and we will see you next weekarea ♪ ♪ fox news.com and see why we have these microphones. see you tomorrow, everyone. >> health care or health control? a majority of americans now think the law is not meant to heheir lives but to control their lives. well, how about this for ntrol? the administration just telling medium-sized employers they have to swear to the irs under pen amof perjury that any layoffs have nothing to do with obamacare. so does the majorit have it right? is this control out of control? , everyone, this is "bulls and bears." here they are, the bulls and bears this week. welcome to everybody. okay, john,