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this is like everything is legal. what is more american than opening a lemonade stand? do you like the lemonade? who is first? thank you very much. >> for years, kids opened stands like this, but today, watch out. police may arrest you. >> i was like scared. i didn't know what is going to happen. we're selling lemonade at the yard three days. the third day, they came to shut us down. >> and yelling at them go. you have to shut down. >> my own stand here in fox's

front yard. there is a cop over there. will the police bust me? >> everybody gets caught up in this. harvey silver blade says new laws this is just what was added last year makes criminals of just about all of us. >> some regulation is the fact. that is the danger of liberty. >> police never told these girls why they're shut down. >> my husband stopped at city hall to try to find out. the city official laughed and said really? they shut your lemonade stand now? >> the chief explained. >> we're not aware of how the lemonade was made whork made the lemonade or what waits made w we understand you guys are young, but you're still breaking the law. we can't let you do it anymore.

>> and appleton, wisconsin shut down this stand z these girls in texas stopped, too. >> they said you needed a permit. >> in illinois kate and abigail sold girl scout cookies from the front yard. the city sent a litter saying stop these people ran afoul of laws they didn't know existed and still don't understand. >> this is not understandable. not only for people like you but i am a lawyer. i and this is incomp hence dwroibl me. >> the police don't understand. she said the lemonade stand violated the law. but... >> two officers the previous day brought lemonade from them. >> and in scottsdale arizona they're accused of breaking a property maintenance ordinance. the crime? this tree in the backyard.

>> they said if you don't remove the tree you'll be fined $2,000 a day you bought the house partly because of the tree? >> yes it turned out the tree wasn't on the planning and development services department's list of approved trees. but there are a bunch in the area. >> and you point this out to the authorities? they say what? >> let us know who they are. we'll cite them as well. >> in california stephanie and chuck were fined for holding bible studies in the home. need a conditional use permit. >> and that is tricky. it goes down this road of traffic studies, earthquake studies, land studies and tens of thousands of dollars. >> they asked how many people make for a meet something. >> code enforcer and boss there from the planning department said "more than three". >> you have more than three kids. >> i have five.

>> and other people are accused of breaking the law can afford expensive lawyers who often get them reduced sentences but what if you're just an ordinary businessman? watch out. you can go to jail for years. we didn't watch the lawsuit. >> and andy used to import seafood, then thorkts said you're in trouble. >> i did the same thing 13 years over and over. cleared customs and bring lobster tails in, sell them, nobody in the government had a problem with that. until that day. they walked up on the dock and said "don't off load the lobster tails". >> customs says stop unload something put them down. >> we put them back and wondering what happened. they didn't know the answer. >> you know you shouldn't. that is old fashioned now, the laws are more technical.

>> the government said he broke regulations on the books in honduras. >> and said they had to be pack yanled in 40 pound boxes wex had them in bag autos everybody was using plastic bags. >> i started in 1986 and it was always doing it the same way. >> and even honduras said you've got it wrong. doesn't matter. >> 7:30 in the morning. there is about six, or seven black vans and fbi, irs. national marines fishry service and customs, there is 13 of them on the deck with gun autos that is just the beginning of the nightmare. >> you're sentenced to? >> eight years and a month. >> that is right. eight years and a month. maybe he was a repeat offender? >> any trouble with the law before this? >> a speeding ticket. >> he served six years in

jail. >> what happened to your business? >> i went broke. >> what happened to your family? >> they went broke, also. it broke us. my kids are back home with their mother. and that is the story. >> i assume these attorneys general are not evil people. okay they're ambitious and want to maiblg a name for themselves but they don't want to hurt people that didn't do nasty things. but there are a lot of fanatic autos prosecutors noticed other prosecutors like rudy giuliani and richard brumenthal won high office by racking up impressive conviction records. >> they'll comb books and find something. >> this could happen to you. they can take any law they think you broke and take you do-to-trial. and whether you win or lose you're going to lose because by the time you're done fighting it, you're broke.

>> the government never goes broke. >> they don't have so spend a million dollars. >> i heard they spent $5 million. >> how much money does it take? >> i've had clients who spent $10 million. >> can i not even imagine how much money they spent prosecuting my husband. >> and the feds tried jill's husband, jack and lost but instead after poll jizing they threatened to fine him $37,000 a day. the terrible crime did the government say they committed? trying to build a house on their own property. >> the county gave you permission to build? >> they did. they inspected the foundation. and approved it. >> so you started to build. but a government-owned ditch fear by was clogged with logs, jack asked the government to fix it. >> they told my husband we're backed up six months fchl you

can clean the ditch do it so. we used a back hoe. removing huge logs out of this ditch. for water pouring off and on to the land. we were cited with a felony for cleaning the ditch. a felony charge. it gave the property appearance of being a wetland. they said flood your property, then, the federal government comes to charge you with felony. >> so this isn't a wetland. jack was digging a well here, he had to go deep down he was down about eight feet. did not find a water table. >> i should repeat. a jury cleared jack of all charges. >> and we won but after we were home for a month, maybe, the army core of engineers saying how nice for you that you won in criminal court but we still feel it's a wetland.

and the decision made by the jury did not matter to them. and if you don't get off the property we're going to fine you. >> what does that mean? >> um... $37,500 a day. >> they had to sell the home. now they live in a modified trailer. >> so i won't live like that. >> their life savings? we'll be bankrupt. you have no idea what you're up against. you don't know the power that is the epa. >> this is a foe with unlimited budgets, they wear down. >> they come in and ruin lives. >> so our government supposed to be bit people, for the people, sometimes it's against the people. >> up next, why i had to do

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>> john: the fact that american police tell little kids they don't have the proper permits to do this, made me wonder, what does it take to open a lemonade stand legally in america. >> they directed me to this

website. >> this is supposed to make life simple. >> they make it easy, except, what? >> there was unintelligible questions. >> what is an assistant. >> an employee identification number. >> the government said i needed to take a 15 hour protection class to sell lemonade. >> i don't have a bicycle. >> and then an exam and wait weeks to find out if i passed. then i would buy a government approved fire extinguisher. it could take months, forget it. so i did it without a permit. max's lawyer gave me the okay. i didn't sell anything. i had to give every refunds. first, the customers thought it

was crazy. many once had their own lemonade stands. >> did you have to get a license? >> i'm in canada and i can't let you drink this. >> there are so many rules, i'm not allowed to sell this to you. >> i didn't have time to get all the permits. >> you didn't need any permit. >> that is how was once in the united states. >> back in the 1920s and you take a poor italian and he going out and buys a used car and paints the word taxi and he is in business. >> john: this old documentary he got his start driving a cab. >> i made about $125 a week. >> today he couldn't buy a cab unless he was millionaire. >> most cities to buy one of these medallions.

no medallions, you are not legal. but they now cost million dollars. >> very expensive. >> so expensive that only big companies can afford them. so these drivers are not entrepreneurs, they are employees. >> it's because of the medallion. >> the purpose of these licenses is to keep outsiders out the purpose of a license so they can charge higher prices. >> john: one of the few remaining places you can start a taxi business is washington, d.c. >> it's the last bastion of free entrepreneurs in america. >> john: this lobbyist wants to end that freedom. >> you have to regulate. >> john: he wants to bring the medallion rules to the washington, d.c. he wants to cut the taxi cars in

half. >> there is too many taxicabs. >> they don't think so. >> they like be allowed to work but the lobbyists convinced the d.c. councilman to sponsor his bill. >> we want to professionalize our taxicab system? >> we wanted want to make sure the customer has a good riding experience. >> john: that sounds good but regulations are in the books subject to every driver to petty harassment. still at least in washington, d.c., open entry rules allow them to enter the business. >> washington, d.c. is the only major city in america that allows open entry. isn't that good for poor people? >> no, it's not. a medal yon system is what is needed. >> john: that squeezes newcomers out?

>> and they should be squeezed out. >> john: why? >> because this is a regulated industry. >> john: how much do you get paid lobby for this. >> my right is $775 an hour. >> i can't blame him, but don't husband 80 me. >> john: so you are paid by the taxi king, jerry schaffer. >> i'm being paid not him. >> john: keep the little guys out. >> kings, queens and jacks. >> poor folks pay lobbyists. if he gets his regulation, poor people won't be taxi entrepreneurs. >> only a few will be able to afford it. >> john: washington has been an open place for taxi to become a

taxi driver so why monkey with it. >> folks have different legislation, our charge is to implement it. >> john: how many laws have you gotten past? >> very active. >> john: ever repeal any. >> no, we haven't appealed any. >> john: it makes it much harder to be an what's the matter? uh, trouble with a car insurance claim. ah, claim trouble. [ dennis ] you should just switch to allstate, and get their new claim tisfaction guarantee. hey, he's right man. [ dennis ] only allstate puts their money where their mouth is. yup. [ dennis ] cla service so good, it's guaranteed. foreman ] so i can always count on them. unlike randy over there. that's one dumb dude. ♪ the new claim satisfaction guarantee. dollar for dollar, nobody protects you like allstate.

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6. >> john: put aside what you eat. it turns out, no. some towns ban meals.

one banned all fast food restaurants. they want to limit the salt i eat. if you sell certain things at the food police disapprove of, you better watch out. >> there was lookout banging on the back gate. >> john: not long ago, federal and state officials raided a food co-opt in los angeles. >> were you drawing guns. >> they searched me. they thought we had cocaine in the fruit. >> their crime was selling milk that hadn't been pasture turized >> they also raided sharon's farm which supplies rawsome with the natural food. >> these people come and rip my house apart. they took me down to the county jail, booked me. like i was a criminal. >> they were charged with six

felonies. they could go to jail all because health officials say raw milk can be down right dangerous. >> john: it can. unpasture used means it's not heated and could have salmonella but raw food buyers say this. >> it's pure and healthy and makes me feel good. >> john: that is ridiculous. but don't people have a right to be ridiculous. >> this is america. how are you going to tell me what i should and shouldn't eat. i eat lots of dove bars and i also eat chicken. they say it causes lots of illness and many deaths. we don't ban chicken. >> when the government gets between my lips and throat, that is an invasion. >> why do you want to drink raw

milk? >> i think it's good for me. >> john: most states ban the sairls sale of raw milk just like unlicensed lemonade stands. my lawyer told me if no one drinks it and i don't make any money, that is probably legal. >> it indicates the prejudice against terrible business people. anyone who is this s is in business is a cheater. >> john: cdc says hundreds have gotten sick from raw milk? >> more have drowned in backyard swimming pools. ultimately you and i should be able to choose our risk. i think eating mountain dew is risky but i'm not asking for a

government telling you can't do it. >> they have koult elevated 500 acres and more and more rules. >> every day, i look over my shoulder, what are they going to find illegal. >> john:. >> you can go into the woods and put a deer prominently and take it around in the afternoon sun and take it home and string and feed to it your children. that is being a great american. >> but if i take one lamb or one pig and get all the neighbors together and we have a community kill them and one neighbor pays me a criminal i'm a criminal. >> john: we need government to protect us? >> if that is what you think, go ask for government protection

but allow my customers and me who don't have faith in the government, let us opt out. it's freedom of choice should be important as the freedom to worship and speak and own a gun. >> john: what about the freedom public officials doing public work? coming up, in america these days you never know what is legal. you never know what is legal. can police legally arrest you [ male announcer ] what makes you trust a company? wait -- scratch that -- what makes you trust a car insurae company? a talking animal? a talking character? a talking animal character? how fancy their commercials are, maybe? or how many there are? well what about when a company's customers do the talking? esurance customers are saying stuff like "awesome" and "rockin'." and they aren't even paid to.

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plus, free standard shipping - but only through march 18th only! there are 400 sleep number stores nationwide, where queen mattresses start at just $699. live from america's news headquarters police are investigating a possible murder suicide after bodies of a mother and her three daughters were found in st. louis. police say the victims each suffered a single gunshot wound and say investigators aren't looking for suspects. >> and the west getting rough weather this weekend weekend and there is a heavy system in california and rocky mountain states with as much as two feet of snow. the same storm system also threatening to bring back flooding from texas into missouri and a tornado watch

has been lifted for the texas pan handle and western oklahoma now back to "illegal everything". 's illegal everything. our government adds thousands of new laws ever year. the feds added 80,000 pages of laws. and state and local laws we're drowning in rules. >> this could lead to the police locking me up. given the police have the power to lock me up, or shoot me, it's important that we be able to keep an eye on them. >> fortunately that is easier today even our phones have cameras and camera is a powerful tool, watching the watcher. >> you are going away. >> the problem is that often the watchmen don't want to be

watched. >> a highway patrol told pete stop your rv. pete is an activist to that likes to videotape encounters with authorities. >> turn that camera off, please. >> how come? >> turn it off for me. >> he had broken no traffic laws but he was suspicion of his big trailer with new hampshire plates. he filmed the encounter. i would like to keep everybody accountable and the police officer didn't like that. another arrived and said -- >> i'm not turning it off. >> you are going to jail. >> the cops grabbed his camera and arrested him and his friend. >> they held us in jail. >> after 12 hours the police let them go. >> they charged me with possession of a beer because there was one opened beer.

they nothing else to stick on me. >> they couldn't charge him with filming the police because that is legal. just outside my office a cop claimed a bicyclist rolled in to him on purpose and the video showed up and showed the officer was the aggressor. that cop was eventually fired. maybe video like this is why some don't want to be filmed. >> i'm recording what you are doing. >> this is my yard. >> in rochester new york, when he heard a driver stopping outside of the house. she went out to film the encounter. one officer didn't like that. >> i'm allowed to stand in my yard. >> i was in cotton pajamas. i don't think there is any

faith. >> all i have camera and i'm wearing nothing. >> it does not matter. >> you are going to jail. >> i don't. >> understand the officers took her to jail and charged her obstructing governmentalings. >> did i nothing. >> i think the young police officer is high on his power. >> high on his power is a little harsh. he is doing his job. >> no, it's not his job to take people from their own property and put them in jail. >> john: a month later, emily put the video online. it was viewed thousands of times some viewers criticized the police. >> john: you post it on youtube and they come back. >> in uniform, four officers. >> police showed up outside a meeting and started writing tickets for parking violations,

like parking 12 inches away from the curb. >> her friend taped that. >> it's 12 inches from the curb. >> the media picked up on the story, police chief said officers' actions were inappropriate. charges were dropped but no officer was ever punished. they never are. even when they arrest news men. just ask. tried to film a police pursuit. >> because it's an act of seeing and you are leaving. go away. >> john: he went away. he moved across the street. then the officer drove up to him there. >> put it down. put it down. >> john: they charged phil with obstructing government. >> did you obstruct the government. >> absolutely not. i was probably 1,000 feet away

from the officers. >> charges were dropped, the officer was never punished. none of the officers would talk to us. head of one police union, sent us a comment. >> some is a serious safety issue. i am afraid terrible something will happen. >> opposite is true,. >> john: this hijacker rammed a cop car. the officers shot limb and exonerated from murder because he acted in self-defense. some officers understand it's just part of a job to be filmed. >> so let's give three cheers for the officer from oceanside, california.

it's refreshing to hear an officer. my badge number 1093, god bless america. >> john: coming up. should they have the freedom to sell sex? should they have the freedom to get thigh? legal drugs and sex work when we return.

>> john: lots of people in jails are here for drug use. people that make the law, many admit they use drugs. >> which are you ready to admit using marijuana in the past? >> the audience applause. >> i didn't inhale. >> i inhaled frequently. that was the point. >> everyone laughed. but the same politicians oversee

a system that does this. >> drug raids happen in america more than a hundred times every day. neil once led the raids. >> you have locked up hundreds of people for drugs? >> absolutely. >> john: you feel good about it? >> we really thought these drugs made people evil. >> john: but ten years ago, he decided drugs do less harm to americans than the drug war? >> drugs are and can be problematic but the policies we have in place to prohibit their use are ten times more problematic. >> john: drug raids as changed. s.w.a.t. team broke into this family's house. shot their dog. once inside they didn't find any drugs. the owner was charged with

possessing drug paraphernalia. >> we just end up with dogs being shot but kids being shot. we end up with search warrants being served on the wrong home. innocent people on the other side of the door thinking they are protecting their home. >> we should be kicking down more doors. >> paul was a white house drug czar. >> they are not kicking the door koor if somebody is smoking marijuana but they are kicking the door for a violent person. >> sometimes they terrorize people? >> because the accident happened should not be a reason to do away with the program. >> it didn't stop drug use but it created violence. >> tens of thousands of people are dying. >> john: because they get high on drugs about but because something is illegal it's sold on the black market. drug dealers can't call the cops

if someone tries to steal their supply so they arm theirselves to the teeth. >> people get hurt. >> john: especially kids. drug gangs look for new recruits >> they recruit better than fortune 500 companies. >> he demonstrate how they recruit kids. >> look what i got? wouldn't you like a pair of these. come back and show me again. >> they come back and you are looking good, man. wouldn't you be able to buy a pair of them every week. this is what you could be. >> john: few days later the dealer sees the kid again. >> you owe me when you offered me sneakers, you got my $120, oh you don't. here you hold for me.

that is all you have to do. you get to keep the sneakers, i got you. if drugs were legal people would assume there would be more than that. >> it is the policy of prohibition that causes the environment. we don't have the kids on corner fifth of jack dan will itself. >> sewed by businesses and safe businesses, there is no violence here because this is legal but there used to be violence in places like this. violent crime is why america ended 90 years of alcohol prohibition. >> we created organized crime. it organized well before prohibition. >> john: here is the murder rate about 80 years ago, it rose when alcohol was banned and dropped when it was legal again.

>> if we want to do away with drug laws and say let adults do what they do, we know statistically the drug usage numbers are going to skyrocket. >> john: but we don't know that. they would think drug abuse would be rampant. portugal did he criminalized all drugs and the number of abusers did not skyrocket. >> people talk about portugal as a success, it's actually a blatant failure. >> john: we went to portugal. he is just wrong. this man is portugal's drug czar 15 years ago, hair win users shot up on the streets and instead of doing what we've done they tried something different. they decriminalized every drug. crack, heroin, you name it.

>> it's legalization. we have most drug use in the world. >> it's treated like a parking ticket. people caught with drugs this man found with hash get a slap on the wrist. when the law passed. stoned people ran wild in the streets taking heroin and crack? this woman served in the parliament. >> they take more responsible attitude toward drugs. >> john: despite the freedom. independent studies found that the number of people that regularly do drugs stayed about the same. more importantly.... >> numbers of addiction decreased a lot. >> this woman was openly smoking a joint near police officers. but we saw more public drinking than drug use. drug abuse is down say authorities and drug crime is

down. >> at first this police inspector had doubts about the law but they say it works. >> and teen drug use is down. >> it brought peace to the debate. >> john: but in america the drug war rages on. >> coming up, another war against prostitution. >> we don't sell access to the intimate self. it creates the idea that human beings are no better than this. >> but the sex workers is saying tom, check this out.

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>> john: in these piles of laws, one law that most agree on. the ban on prostitution. sex is okay, money is okay, but sex for money, that is forbidden >> seven women arrested and charged with soliciting prostitution. >> women hide their faces. >> tv reporters treat prostitution like most other crimes. >> we have exclusive pictures as vice cops sent set up a sting. cops posing as johns ealtdz lured five women to the hotel. >> john: even using the yellow pages. think about that. it wasn't difficult for the police to discover the lawbreakers. the yellow pages in my town has 15 pages of so-called escort services. police ignore 90% of it. when they do make busts the implication the police saved the

prostitute. >> jail may be the safety place they have ever been. >> john: jail is the safest place? i doubt that. >> more importantly, where sex work is legal there is little danger. here in nevada, for example. brooke says sex work is like any other sales job. >> we are entrepreneurs and independent contractors just like any other business. >> she works at the bunny ranch, one of 28 legal brothels in america. >> john: you are pimp. you are exploiting? >> i have a license to do this. 500 women rent out his brothels. >> to be bought and sold.

>> wait a second. don't you feel demeaned? >> not at all. >> the u.s. state department says selling sex for money inherently demeaning. >> sex is supposed to spontaneous. >> who made the sex laws. >> you do it for money. >> if you model for money. >> sex is more intimate. >> you are still showing your body. you are exploiting yourself. >> i choose to do this. this is what i want to do. >> i assume you had no other options. >> i had several options. before i can this i had a nice paying job. >> these girls can go out dates and give up sex and it's fine. but if guy leaves a hundred dollar bill on the dresser, is something wrong with that? >> it's not that complicated to appreciate why we don't want to

legalize proog is. >> i put to it former prosecutor? >> we don't sell access to the intimate self. it creates the idea that human beings are no better than slavery. slavery is against the constitution. we find it. >> john: but that is involuntarily, that is forced. >> prostitution is very close to slavery. it's inconsistent with what freedom means to subject humans to market forces. >> john: you lost me there. humans are subjected to market forces all the time. ever see a fashion show? a professional sports draft or a boxing match. >> two people could beat each other up in boxing ring, why can't the girls have sex for money. >> sex is just a job, some better some others. >> a girl at mcdonald's doesn't love make goburgers.

>> candy dropped out of a college because she wanted to do sex work. >> if i don't like somebody, i don't have to be with them. >> nevada has it right, not all of nevada. in las vegas, it's illegal. >> they have lots of diseases, two million property thefts last year. prohibition does not work. if you want disease and you want money going to criminals, keep it illegal. by keeping this illegal you kill people. people don't get aids tests. they are afraid to report crimes to the police. in nevada, in parts where it's legal, there is no crime. >> oh, please. you can't. >> they do engage it's under ground. >> so people rob banks, too. we can't regulate. >> stealing money from people. this is consensual, there is a difference. >> people will want to do things

that are harmful to them. >> john: i wish you could talk to the women from the bunny ranch. >> i would be like, i could save you. >> john: the sex workers listened to her comments. >> and they joined the conversation. >> they work in a legal place. they say it's great. >> we like it. if it's your own choice. >> i am happy that you are happy. but the fact that you are having a good time is not an excuse to ignore the harm. tell me why? >> it isn't about you. >> but nothing but happy. i believe the majority of prostitute women suffer. i i compromise your freedom. >> so you want to tell everybody

in the world what they can do with their own bodies. >> john: senate majority leader agrees. >> the time coming to outlaw prostitution. >> because it's sex. >> relax, just sex. >> even if you support the laws against sex workers, do we need all these laws? so many that no one understands them? so many that the government admits it can't count them all. no, let's get rid of some of these laws.

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