. >> reporter: peter barnes, fox business. >> go to team cavuto and give us your thoughts. thanks for watching, i'll see you tomorrow.. >> what should network do about poverty. >> my gosh, that is too big of a question. >> that's a hard one. >> here's one answer. >> cash by the truck load. >> just give people money. one country may do that. >> receiving an income for being alive. >> bad idea. >> heart for the poor, supposed to have a mind for the poor. >> many people minds tell them spread the wealth. >> should be less greedy, share more. >> and here's the minimum wage ♪.

>> what should america do about poverty? that's our show tonight. in this rich country, lots of people are poor! so what should we do about that? spread the wealth. that's the democrats' plan. some americans are plenty rich, we could just tax them more and spend the money on the poor. 50 years ago president johnson said america will end poverty by doing that. >> this administration today here and now declares unconditional war on poverty in america. he expanded social security to include more people. expanded the food stamp program, created job training programs, the job corps, vista head start and more. and look how it's reduced poverty. in the first 10 years of the war on poverty, the poverty

rate dropped from 17% to 12%. that's great success. but wait a second. look at years right before the war on poverty began. americans were already lifting themselves out of poverty without the welfare programs. and now look at this graph that shows what's happened since the war began, after five, ten years of improvement, americans stopped making progress. the poverty rates gone up and down. what happened? earlier i asked congressman paul ryan what happened. >> we basically decided to measure poverty based on inputs. how much money are we spending, not on outcome, how many people are getting out of poverty. basically managing poverty and perpetuating poverty. and so many of the programs end up disincentivizing work, end up telling people sometimes if you go to work.

>> encouraging people to go dependent. >> you're called a poverty trap. if you lose more in benefits by taking the risk of going to work and not being home and seeing kids and things like that. >> the rational person says it doesn't work. >> congressman ryan has come out with a new book titled the way forward, it expands on the anti-poverty plan he released a few months ago. so what's your way forward? >> work. getting people from welfare to work. >> stop with that. >> you're implying cruely, republicans cut them off and go to work. >> 92 programs spending 800 billion a year that are trapping people in poverty in many instances. we're saying stop the bureaucratic one size fits all alphabet soup of government agencies trying to dictate this. bring resources back to communities, and focus on the individual states.

give states more flexibility. but most importantly focus it on getting individuals from welfare to work and do what you need to do to help deal with people's individual problems so they can get from welfare to work. >> impose work or job training requirements. custom aid to a person's need. how do you do that? >> that's right. this guy needs drug counseling and ged, maybe she needs day care. >> the state bureaucracy will figure this out. >> break it up and allow the private sector to compete based upon performance about whether or not they have a better model to get people from welfare to work. give families in need a choice of providers. >> two other points in the book. regulatory reform to reduce barriers to entry? >> meaning there's two forms of. this you have big businesses and established interests that will come to government to protect them and erect a barrier to entry. >> licensing rules. we can't just let them operate

here. >> that's right, get rid of that. we have a free economy so everybody can compete, so we don't have crony capitalism. as republicans, we need to be a pro market party not just a pro business party. >> tear the rules down. >> a lot of regulations hurt the poor. a lot of regulations take disposable income from people. >> the congressman has taken plenty of heat for his plan. mostly from democrats, jim mcdermott from washington state. >> paul ryan is sitting up there smiling, but his budget that he put out cuts $137 billion out of food stamp program. i mean, they want to seem like they care, but when you put and look at their deeds, they clearly don't care about the poor. >> cruel republican cutting food stamps. >> we spent trillions of dollars over 50 years and haven't moved the needle if you cut food stamps, they'll starve. >> i beg to differ.

the obama administration removed the work requirement for food stamp recipients for the able-bodied. what we're proposing and jim is criticizing in part is work requirement, reinstating the notion if you are an able-bodied person and receiving government assistance, taxpayers expect something in return such as work related activities. everybody has a different problem, the federal government sitting in washington thinking it knows how to get people out of poverty is arrogant, condescending and doesn't work, we want to empower -- >> states may be incompetent. >> break up the monopolies and have a competition to experiment with ideas to focus on how to get people out of welfare, out of poverty into work. >> democrats say this is governments' responsibility, and the best way to do it raise the minimum wage. this makes stones people. >> it does make sense to people. >> the congressional budget office tells us it will cost half a million to a million

jobs. >> how? >> it will raise the price of labor and businesses shrink the availability of jobs. when i worked at mcdonald's, when i waited tables, i made minimum wage, and it was a fantastic opportunity to learn good skills in life that made me better, and by raising the minimum wage, you shrink the pool of jobs that people need to get into the game in the first place. >> i was upset to see one of my favorite actresses higher minimum wage, here she is playing mary poppins. >> i'm afraid i'm leaving for good, my children. >> but why? >> i'm only paid the federal minimum wage. >> use your magical power. >> you would think that would entitle me to more than $7.25 an hour. >> that's not the version i remembered. >> this convinces people, it seems cruel, and people say a business isn't going to hire fewer people for an extra buck or two. >> businesses they.

>> the point here is not to shrink the pool of available jobs that people get in the workforce and make a better life for themselves. a job, that is the bridge to a better life. we want more of them, not less of them. >> 92 welfare programs shrink the number of jobs? >> i think the government in many ways shrinks the number of jobs, whether it's taxes or regulations, when you see tens of millions of people in america not having access to opportunity, and we want the government to do more damage to our economy, to make it harder for people to get jobs. >> these look like government does good. >> government is important and does a lot of things well. we want to keep government limited so what it's supposed to do it does well instead of spreading it too thin or wide so that it doesn't do well. >> thank you, congressman ryan. >> thank you, now let's hear from opposition, we showed congressman ryan a clip of democratic congressman jim mcdermott saying ryan doesn't care about the poor.

representative mcdermott joins us now. congressman, don't both parties care about poor people but disagree about the best way to help them? >> well, paul ryan has tried very hard to be a compassionate conservative. it's by the deeds they shall know. it cuts all over the place it brought people out of poverty. we are not investing in kid, not investing in the national institutes of health. not investing in nasa. not investing anywhere. >> i assume you want to raise the minimum wage? >> of course. this whole business about somehow raising the minimum wage causes a loss of jobs. if that's true why, don't we just drop the minimum wage altogether and let people work for a dollar a day or dollar an hour. >> that's the agreement between their employer, wouldn't that

create a lot of new jobs, maybe apprentices at construction sites again and somebody pumping gas at gas station, learning how to work. >> putting people to work, that's a good idea. if they're at work and can't pay bills and can't see kids. have you people with two and three jobs trying to make it. >> why not 40 bucks an hour if there's no harm. if it doesn't take jobs away. >> you can get crazy like that. that doesn't make sense, what makes sense is to gradually bring it up. it was once a dollar an hour, now up to $7.25. we're saying bring it up to $10.10 an hour. that would be a good start. >> hollywood agrees with you. actress kristen bell says a spoonful of minimum wage will make poverty go down. ♪ just a $3 increase can make a living wage ♪ ♪ it makes a living wage ♪ it makes a living wage

♪ just a $3 increase can make a living wage. >> it's so sweet and reasonable, "reason" tv's remy was quick to dress up and sing about the result of a minimum wage hike. >> so they'll raise the price of me, how happy i will be, it's great, i've been replaced by a machine ♪ >> congressman, that happens, cashiers get replaced by self-scanners at the checkout counter and so on. >> we see the changes in the job market. if you're not paying people a wage that they can afford it put a roof over their head and pay for food, and pay for transportation to get to work, and have any chance to help their kids go college, and pay their medical bills, it's a crime that anybody in this country as rich as us should have to have a bankruptcy, a

medical illness, it's unforgivable. >> i fear most americans agree with you. i talk to people in times square. at least some people said government teaches people to be helpless. >> giving everybody everything is creating a society where it's expected. >> people need things. >> it's okay to help. but do we need to give them free snooens anything you subsidize, you need more of. as long as you subsidize there is more of it. >> we have the chart showing what's happened since it began. i don't know if you can see it there, but progress was great for five, seven years, and then it stopped, because we taught americans to be dependent. >> your programs do that. >> we have shifted the cost onto people and made them more and more and more in debt. people are -- houses, future,

are gone because they have financed their kids education. >> so everything should be free, education, college education, health care, you just want to spend other people's money. we can't afford it. >> europe's -- what do you mean we can't afford it? the french? >> the french are going down the tubes. [ laughter ] >> but their kids are educated and they're competing with us in the international markets. other countries understand investment. this country understands only the bottom line of the very rich, and they are doing fabulously. >> thank you, congressman mcdermott for joining us to argue about this. i hope you never get on spend all of our money, at least as much as you want to. >> i hope i get a chance to spend some of it. >> 2.5 trillion isn't enough? audience to join the argument, tweet using the hashtag poverty

or post on my facebook page. we want to know what you think. coming up, some believe the best anti-poverty program is a policy that gives people thousands of dollars a year. is that smart? that's next. smart? that's next

john: you . john: you want 30,000 bucks? switzerland may give its citizens that every year. here's coverage of a promotion for the ballot measure. >> cash by the truck load. the proposed basic income initiative arrived with a splash, and the promise of 2,000 euro a month for every swiss citizen. intended to let them live without basic financial worry. john: live without financial worry. what a great idea says elizabeth nolan brown, editor at reason.com. no, it's a terrible idea says economist ed stringam. so elizabeth. you got to convince me. why is this a good idea? people waste the money and the government will say you have to spend more. >> i don't know they agree exactly with the plan that they have. they are all different versions, milton friedman proposed a version of this.

it's not an anti-libertarian position, per se. >> and my hero wrote a plan to replace welfare state gives everyone 10,000 bucks. >> the welfare system is so huge, so inefficient, it has the different rules and application requirement, all the agencies administering it and pay the federal salaries and pensions, kind of wipe all that out and combine everything and it will be much more effective and less expensive. >> the way through poverty is not through handouts but markets. look at societies that have more markets and less interference with our lives, hong kong, singapore, united states. john: we all agree on that, and i'll go into it more later in the program. what about the helpless people? give them money and simplify it. >> think about the best way of helping people. number one is markets. i do also think we have a positive obligation to help people in need, but government is not the answer.

historically, private associations that do, that friendly societies, things like knights of columbus. john: they weren't that friendly, they were racist in that they help people of their own kind but they were smarter. they said you don't need a handout, you need a kick in the rear. they were better at it? >> helping people back on their feet, rather than giving free cash handouts to people that says this is going to encourage you to not work, they would say how can we help you back on your feet. >> the groups would come back if we stop the handouts? >> the more the government takes out of our pockets, the less people give to charities. called the tragedy of american compassion. john: but people don't believe there would be enough -- i agree with you, it would be private money to do it. but elizabeth, really, the cocaine addict, he gets 10,000 bucks, it goes right up his nose. he's got kids, the politicians

say we can't let his kids starve. there will be a new welfare program. >> that happens now, have you drug addicts now, they buy drugs and don't feed kids and have you child welfare come. not like we need to create an entitlement program to deal with kids, we have a program for that. you have to spend money on food or income or rent, the government gets to choose how you spend your assistance. what if you grow your own food? what if you have a house? you need to make car payments to commute to a better job, take a class to create a better situation. >> i used to work in san francisco and they gave cash handouts to homeless people at beginning of each month. a lot of them did illicit substances. >> i don't think the homeless population can you extrapolate to american citizens as a whole. >> that's certainly true, by paying people whether or not

they're working you're giving them the extra option of not investing in the future. >> it gets rid of the disincentives that the current system has. you get a couple extra hours at work and lose all your benefits and you are paying for commuting to work and child care. john: the earned income tax credit was supposed to get around it. if you work, you get a benefit. one study found in gary, indiana, they gave people money and the hours of work reduced. count down. >> the biggest reduction was in single mothers, about 130 hours total which would equal three working weeks and found they weren't using this to lay around. they found the people take extra time were spending more money looking for a better job or with a newborn or a lot of the young people were going to school. they were taking it to improve their situation. john: thank you, elizabeth, and

ed. coming up to help poor people overseas, americans give millions in foreign aid. >> the problem is it does not work. everybody knows it. >> failed everywhere it's been tried.

>> there co ♪ there comes a time when we heed a certain call ♪ ♪ when the world must come together as one ♪. john: there are a thousand charities raising money to help the poor. >> they give us food, they bring us shoes, leave us wealth. >> give now and lives will be saved. thank you. john: and so americans give, give about $5 billion per week, hoping to help poor people. >> the problem is, it does not work. everybody knows it. >> it's failed everywhere it's tried. >> everybody talks about it.

>> paternalism, is no match for partnership. >> and yet the icons of charity remain the same. john: icons of charity are the ngo's. the nongovernmental organizations that profess to help poor people. plus governments like ours, americans spend money overseas basically foreign aid but it doesn't work, and all the charity money doesn't help? that's the claim of a new movie poverty, inc., it will be released this fall. michael matheson miller made the film. charity money, 5 billion a week doesn't help the poor people? >> obviously, there are times foreign aid may help. there can be good and bad aid. john: short-term help after a hurricane? >> right, the biggest problem is we've used the emergency model of development as the standard for economic development. you have an earthquake, three years later, people are still

giving away rice or giving away different things. often times our help ends up crowding out local businesses. john: we help them stay poor. >> turn people into the objects of our charity. we crowd out local business. >> look at haiti, one of the poorest countries in the world, and after the earthquake in 2010, they got $15 billion in aid. after they got 15 billion, haiti was poorer. why? aid encouraged people to be helpless. >> there are more ngo's per capita here than anywhere in the world. they try to find ways to give away free stuff, as if they didn't want the haitians to stand up for themselves. john: america encouraged helplessness subsidizing american rice farmers, farmers grow lots of rice and america charitably gives it to poor haitians.

before the charity, haiti was self-sufficient in rice. >> when they started flooding the haitian market with subsidized rice, what actually happened is that rice became a cheaper commodity. from three times a week, now consuming rice three times a day seven days a week. john: because rice is practically free, subsidized rice destroyed the livelihood of rice farmers. >> because farmers could not make a living outside in the rural areas, they moved in looking for better days into port-au-prince and overbuilt slums. what it did is it created more poverty. john: and haiti stays poor despite all this aid. people come down to help. >> so one of the stories is about a company called inersa that makes solar panels. inersa trying to make solar panels, after the earthquake, there was a huge demand, but organizations of the united states, ngo's and solar panel

companies began to ship solar panels down there for free. one of the founders said we went from selling 50 a month to five in six months. our desire to help actually delayed the development of local business. john: but to help the poor, the answer can't be to do nothing. they're horribly poor, we're rich, people want to do something. >> we're not called to have a heart for the poor, we have to have a mind for the poor. doing things makes the situation worse for poor people. we have to stop. john: a sliver of good news, finally, leaders of developing countries recognize that aid can hurt. here's the president of rwanda. >> aid leads to more aid and more aid and more aid and less independence of the people that are receiving aid. john: and we heard president clinton say this isn't working, and even bono is saying aid

isn't as good as capitalism. so things are changing. >> what you're seeing hopefully is people start to recognize that the current way of thinking is broken. let's rethink our assumptions and beliefs how we think about poor people and think about economics. john: thank you, michael, we're out of time. coming up, child labor. >> early in the morning, children board a school bus, but they're not headed to school. they're going to work. john: going to work in north carolina. and next guest says good, let children work! debate about that next. ♪ (holiday music is playing) hey! i guess we're going to need a new santa ♪(the music builds to a climax.) more people are coming to audi than ever before. see why now is the best time.

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plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. it's more than the car.er. and a digital scale. for lotus f1 team, the competitive edge is the cloud. powered by microsoft dynamics, azure, and office 365, the team can gain real time insights and instantly share information around the globe. when every millisecond counts, staying competitive begins with the cloud. this is the microsoft cloud. >> oh, no that . john: oh, no! that boy's hands are bleeding. child labor is evil. this is a video game made for a

so-called educational tv channel. and what education do people get? obvious truths, sweatshops are cruel, workers are overworked in dangerous conditions. american companies ignore the abuses because they make money, and that means child workers are victims of fashion whims. this is what many americans believe and many are taught, and therefore the answer, close the sweat shops down, ban them in america, and demand that other countries ban child labor. the basic human rights issue. who would argue with that? economist ben powell for one wrote a book called "out of poverty," which he says he want wo help people climb out of poverty. we ought to let children work. that sounds awful! >> child labor might be awful, but prohibiting it is an awful lot worse. we don't make people better off when we take away least bad option. children only work in the

sweatshops because families are desperately poor and trying to feed, clothe and shelter the family. if you ban sweatshops, you don't get rid of the poverty, you eliminate the option that makes it not quite as bad as it would be otherwise. john: no laws against it? >> when we were developing, we had virtually no laws against it, and the process of economic development took care itself. in the united states, we didn't have a child national labor law until 1938, it followed the economic development. it makes sense, labor agitated for years, big business lobbied against it. once the competition raised standards including no more child labor, businesses didn't lobby against it and government adopts the laws. >> here's an example how the western media cover the child labor outrage. >> 1800 degrees celsius, and small children are getting it. such a small boy. john: who is at fault?

big corporations, and free trade. >> we think more free trade and more opening up of markets or -- it's a big u.s. corporations is hurting working people all over the world. >> what world are they look at, john. john: this is what people believe. >> 500 million people escaped extreme poverty in china. this is the greatest reduction in poverty in human history going on around us and the process of trade and development doing it. the problem is -- john: the same globalization they hates had lifted people out of poverty. >> if i give you a list of sweatshop countries, hong kong, taiwan, singapore, south korea, all countries in a generation did what took us over 100 years is grow from preindustrial to something that looks like post sweatshop world standards of living. john: human rights watch says there is plenty of abuse of child labor in america. they made this video about it. >> early in the morning,

children board a school bus, they're not headed to school, they're going to work. they're among the thousands of kids who work on tobacco farms in the united states each year. samuel is nine years old. he goes along with his family to the fields and usually sells sodas to workers. >> there's no one to baby-sit me while my mom, brother and sister are working. >> joe becker wrote the human writes report on tobacco farms. how many samuels are there in american fields? nine-year-olds? >> in the united states, hundreds of thousands of children working for hire in agriculture. john: and it's legal in agriculture in america. >> it is, we have a double strnd in u.s. child labor laws. you have to be 14 years told work at burger king and mcdonald's and only work limited hours in a day. if you're 12, you can work 50 or 60 hours a week in the fields and it's perfectly

legal. john: your organization objects to that. why would a law make it better, and is it terrible this nine-year-old is spending time with his mom, brother and sister? >> samuel is working in tobacco. he's out there in 90, 100-degree heat. many of the children especially starting around age 11 or 12 are working ten hours a day. >> ben? >> i don't believe samuel's parents dislike him. i believe they're in a horrible situation that requires them needing sam's income to work prohibiting sam doesn't change that fact. john: the alternatives are worse. >> most children doing it are doing it to help out the family. they want to help make rent, they see the parents are struggling. john: take the worst case, the children working in the factory in bangladesh. senator tom harkin introduced the act, in response, bangladeshi garment companies

fired about 50,000 children. oxfam, a leftist human rights group found many went into prostitution. this doesn't help them. >> so laws are important, but on their own, you're right. they're not going to solve the problem. >> we shouldn't kid ourselves, the main driver is economic growth and it's people escaping poverty that decreases child labor, that's what globalization and economic freedom is about. >> look at the u.s. again, there aren't hundreds of thousands of children working in factories at age 12. nature fields. the reason why is it's legal when. it's allowed parents are much more likely to put their children into hazardous conditions. >>. >> this engine of economic growth that comes to economic freedoms that's what's curing us. we need to embrace it. >> sure, it's going to lead to reduction in child labor. you look at any poor country, not all are working, poverty and child labor are not

synonymous. there are ways to support children in poor countries without them going to work. john: thank you. we'll find better ways to spread the wealth, when we return.

>> do you have a medic . >> you have a medical license?

>> do i have a medical license? no, i don't. john: ana young escorted by law enforcement in handcuffs, delivers babies right inside her second floor office. >> delivering babies without a medical license! outrageous! wait a second, haven't women delivered babies for thousands of years without supervision from people with medical licenses? i assume that midwives customers knew she wasn't a doctor, they chose her anyway. isn't it their right to pay whomever they want? no! not in america. claudia edenfeld is a lawyer for institute for justice that helps entrepreneurs fight stupid rules. i know you're not defending that midwife. but in much of america, she's not free to do what she was doing? >> that's right. in 28 states and d.c., you have to be licensed to be a midwife. in half the states you don't

have to be licensed. oo a century's old profession. john: no evidence women are badly treated in the unlicensed states. >> in fact, giving birth with a midwife is just as safe as with a doctor in a hospital. john: in florida to be licensed it costs more than a thousand dollars. >> that's right. the states that license midwives require two years of education, two years where people are not in the workforce and two years they're having to spend money and time on education instead of working and helping pregnant mothers. >> let's move onto street performers in parts of america. bureaucrats regulate street musicians. two radio hosts debating st. louis's rules. >> it will separate the pros from the amateurs. >> how does it? think about this. street performers are artist, they don't have a lot of money. >> that's true. >> basically not separate talent, you're going to separate ones who can afford it from those who can't.

john: in st. louis, they had to audition for the bureaucrats and pay a $100 fee. >> that's right, and six people were rejected after auditioning in front of a government official. john: what if their music is bad? >> a solution without a problem, john. this is not a problem we're hearing anywhere in the country. john: all right, so travel agents. if i help prepare a vacation trip for people, i'm supposed to have a license? >> that's right, in eight states. john: that means i have to pay thousands of dollars to get bonds? >> you have to get bonds and licensed. if we went into a former travel club because we liked disney world, we have to abide by all of the regulations. john: some states don't have the rules and people manage to do okay? >> exactly right. john: finally, know what this is? it's called a growler. people bring this to a grocery store or specialty brewer to get it filled with their

favorite craft beer. not in florida. >> we can't fill them and turn them away. >> a keg of their beer has to go through outside distributor. before it's sold in local restaurants or bars. >> he would support a bill to legalize them but first he wants his friend, a political donor, an anheuser-busch distributor to approve his decision. john: he says that's not fair. i was consulting with all my st constituents but it's the rule. >> you must not be consulting with people of florida who want cheaper better beer in growlers. you can buy a barrel but you can't buy a 64 ounce growler because that's the standard for craft beer. john: there is a reason for the rules? >> the reason is to keep out competition, big beer companies don't want the craft brewers to compete. it's expensive to bottle or can

beverages. john: other arbitrary regulations for strict interior decorators, hair braiders, coaches in schools, landscape workers. >> people need to start wondering what's going on when street performers are regulated as they are. john: and the people hurt most are the poor people who want to get a start up first rung. >> first rung of the economic ladder. they have to afford the time and the money going into the occupations that are so regulated. john: thank you, claudia, when we return -- i'll show you how to fix poverty. lemonade for sale! 50 cents! who wants stossel lemonade!

. >> am i being arrested? >> being detained for activity. we need to check you for weapons. john: these men have the nerve to offer home improvements. >> are you kidding me? >> no, sir. john: sadly the police weren't kidding. california bureaucrats put that video on the website to show they enforce stupid job killing rules. you want to work, support yourself, you better have a license. unfortunately the license is difficult to get. costs a lot of money, that is

one reason why many americans don't work today. don't try. as my last guest explained, politicians make it hard or illegal to go to work. this is just tragic there. are 7 billion people on earth. fewer than 1 billion have anywhere near our level of wealth and comfort. more than a billion live in miserable poverty. we tried to address it by spreading the wealth and that failed. what's most outrageous about that to me is that we now know what works. it's not spreading the wealth, it's economic freedom when. countries have it, people prosper. here's the list of countries that have it. america is now ranked twelfth, sadly we louised to be near the top. our bureaucrats keep adding rules. we're less free than canada and denmark. look at the place at the top of the list, hong kong, they don't have political freedom.

that's why there have been big protests there. but hong kong never really had political freedom before the communists took over, they had to obey british rulers. the british rulers did something wonderful. they enforced rule of law. that means there are clear rules everyone can understand like you can't kill people or rob your neighbors, and if you have a deed to your property, others can't take your stuff away. hong kong's british rulers enforced that and punished anyone caught robbing or killing, and then they did something very clever. nothing. benign neglect, they sat around and drank tea. they left people alone, and free people left alone with rule of law. people in hong kong made themselves rich. they moved from third world poverty to roughly our level of wealth in just 50 years. the other countries at the top of the economic freedom list are prosperous, too. so we know what works. economic freedom.

but politicians keep wrecking that. what does it take to open a lemonade stand legally in america? i once tried to open one outside bill o'reilly's tv studio. >> lemonade for sale. >> i failed. i tried to follow my government's rules, they were endless. the government said i had to take a 15 hour food protection class to. sell lemonade? after this, an exam. then have to wait weeks to find out if i passed. if i did, i have to buy a government approved fire extinguisher. >> i got my fire extinguisher. to sell lemonade legally would have taken months. i could sell lemonade only if i gave everyone refunds and got the lemonade back. i can't let you drink this? >> why? >> there are so many rules, i have to give your money back. i shouldn't have sold it to

you. i have to get it back. my customers thought it was crazy. >> silly law. john: in iraq, starting a legal business takes almost a month. you have to get permit after permit. those are the rule in much of the world. in america, it's easier in some states like nevada and here in delaware where i managed to open an outdoor shop in a few weeks, but even in business friendly delaware it wasn't easy. i had to register with the delaware secretary of state and division of corporations. >> federal employee identification number. john: but in delaware, it can be done in a few days, and it was good i had done it legally. this cop made sure i had my vending permit. in hong kong, i got legal permission to open a business in just one day. >> thank you, sir. >> the reason hong kong got rich. they encourage entrepreneurs to

try. fewer rules bring better lives and make most everyone richer. that's our show. we'll be back this time next week. lou: good evening, everybody. president obama his attorney general, bill de blasio and al sharpton tonight are all running as fast as they can from their past antipolice rhetoric in what has been for months now their national campaign of ignorance. the president himself saying demonstrations were necessary to trigger american's consciences. the mayor's about-face coming two days after two new york city police officers were shot down while in their car on a brooklyn street. they were killed by a monumentally ill who declared to social media that he intended to revenge the deaths of eric