>> john: how soon to these future entrepreneur tw go out of business? >> entrepreneurship does feel good but governments at war against lemonade stands and people that raise oysters, cigar sellers and marijuana sellers obeying states' laws. >> we will enforce federal law. >> but we got too much federal law and state law and local law. it's killing jobs by making work illegal. >> they are trying to shut us down. >> john: illegal jobs, that is our show tonight. >> john: i tried to get the permit to open a legal lemonade stand but it was impossible. when kids sell lemon on on aide

authorities let them do it. that is good thing says michael. he is an entrepreneur who made big bucks when he sold a computer company he started, sprint and ten-year-old daughter asked him for a turtle and what happened? >> she had too many pets. i said no. the next morning she gets this great idea to start a lemonade stand. >> john: because she wanted money to buy her own turtle. >> this is how america works. start a company and create it. it was the most unbelievable day we had together. because i saw the light bulbs go off in her head. for the first time she understood how free enterprise worked and how money worked. it exposed to what america is all about.

it occurred to me what an incredible opportunity for us to do this all across the country, to jumpstart businesses again by getting to the future of our country, our kids. >> john: so you started, let's have lemonade day. first time you got 2,000 stands? >> we did. >> john: now in the sixth year and you have 200,000 stands around the country? >> maybe more. so our goal is to get by next year, to a million stands in a hundred u.s. cities where we believe ultimately every child in america should do a lemonade stand. >> john: but some cities you won't try, san francisco? >> there is an awful lot of laws in our country and they have unintended consequences. although the health department is designed to help protect us from bad food and bad vendors, it also preventing us from

teaching the youth of america what we have been doing for hundreds of years in the united states and doing lemonade stands. >> john: most places, it's a bunch of kids, lemonade day and we'll allow it. some cities, we won't be safe. they won't budge? >> she good news. when the health departments or the police or representatives have gone out and arrested the kids, in almost every days it's turned into public outrage where they are saying you have missed the point. you need to back down. the health department needs to be supportive. >> john: when you do this lemonade day, hey, kids let's go sell lemonade, you teach the kids how to run the business. >> we are basically running the business side. running the four p's. >> john: you've got 14 steps to

success. setting goals, planning, finding an investor you make them get an investor? >> what it is about in a fun way teaching youth every step in the process. >> john: they have to borrow money to start their lemonade stand. >> what a great way to teach them earlier. >> john: meaning you have to quick enough in an elevator could hear it. >> right. why should somebody invest in your business. >> john: make your business visible. >> it is an important part of our advertising. what is important it attracts attention. everybody making music. flashy colors. people can see from far away. >> what are you going to put on the stands? >> balloons. >> most of them don't have goats by the stand. most health departments would

frown on that. as i said earlier, if the kids try to obey all the rules they would never open lemonade stands. there is now 160,000 pages of rules. we have them here just from the feds. people have to spend lots of money trying to understand and obey all these rules that is money could have gone into hiring some productive people. it cost americans $46 billion a year to follow just the new regulations that the obama administration imposed. 46 billion a year had a could have gone to job creation. allison frazier of heritage foundation came up with the regulations. i think bush as the big regulator but what obama has done is much more. >> that is absolutely right. president bush when he was in

office had 28 major new rules passed under his administration in the first three years alone. >> john: maybe we have enough. >> it's a great fallacy, 28 major new rules. obama is four times greater than that. the cost for president bush's rules for the first three years of his administration were $8 billion. so we've had a virtual explosion almost a regulatory assault is on free enterprise. >> john: new standards for air bags and window designs, if you get thrown out of the car. department of energy, extra costs for appliances. these have unintended consequences. it may deter you from buying a new one, use the old one? >> extra costs for each one that is passed along to the consumer.

consumers are going to make a decision whether it works for them to replace their refrigerator or freezer or central air conditioner and heating of them may use longer the less efficient types of appliances. >> john: these regulators. they think they are doing good? >> they think they are well inintended but i don't agree all of them are. this is one of the problems when you have big government trying to take care of absolutely every perceived fault or risk that can happen in any individual's life. there are many unintended consequences. what we're dealing with right now front and center in our economy is we can't create jobs. that is because our economy is being assaulted by these new regulations. >> john: could you build the company you sold to sprint

today? >> it certainly be harder. what happens with government regulation, it disproportionate affects small business because they don't have the resources. >> john: big guys can say they have a compliance department. we can handle this and help us against the little guy because he'll struggle. >> when you look where all the jobs are created in america, it's not in the big companies. it's in all the small companies. according to the kaufman foundation which is the big organization around entrepreneurship, new companies are going down. number of new starts is falling. this is not good news for us. >> john: what do you tell the kids about this? i can't believe kids are dealing with compliance issues? >> first you teach them how you start a business and then you

introduce the things regulations taxes and let's have them success first. >> john: they are having success and they excited about this. or they say i don't want to do this. this is grind. >> not everyone is going to love it. so many of them do. even if you want to be artist, you debris create a product and turn around and sell it. it's all about how do we teach the youth of america to achieve the american dream. >> john: i am glad you achieved it, moved from one employee to 1400 employees. if these rules make it harder, that is bad for america? >> it slows down the process. i thought we were supposed had to be the land of opportunity. >> john: we were.

we still are but getting harder every year. the regulators are great at making laws but how many do they take off the books when we find they are no longer important. >> john: none, one, two? regulators don't get it. thanks allison and michael holdhouse. coming up, global warming, cigars and marijuana. today, we stand against the tyraeager travelards.

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multi-grain cheerios -- 5 whole grains, 110 calories. creamy, dreamy peanut butter taste in a tempting new cereal. mmm! [ female announcer ] new multi-grain cheerios peanut butter. >> john: something about defending individual liberties, sometimes you have to defend actions i despise. i have enough trouble with sex workers and recreational drug users and gamblers but there is one group, i'm talking about you rush limbaugh and you clarence

thomas and you h.l. menken, disgusting drug habit. you smoke weed, cigars. you can stink up a whole neighborhood. there should be laws that prevent smoking these. but rocky says i am unreasonable. he owns one of america's biggest cigar companies. many people think it's stink and they ban it. >> john, it's an art form and culture that transcended over generations. wins you learn to enjoy a cigar, it's like a great wine. most cigar smokers are very respectful of people and try not to infringe but they want the right and privilege to enjoy a cigar. it's wonderful and something unique. we can enjoy them in cigar

lounges or on the beach and not infringing on their rights. i think it's a great concept. there are reasonable air pollution rules and noise pollution rules. >> you don't have a right to be a public nuisance. these can be a public nuisance. i live in manhattan, one guy on one block is offending lots of people. >> behind the taxi pollution and everything else? certainly be able to go to cigar lounge and smoke in it. if you decide that you want to have a restaurant or smoking cigars, you have a right to choose whether you want to patronize the restaurant or not. >> john: let's explain this to the viewers. there are places called cigar loujs where consenting adults go in an enclosed space. people that some places want to

ban these. >> we have state of the art ventilation. we spent a ton of money, every 60 seconds we have hundred percent fresh air. you have wonderful lounges across this country everywhere. people should be able to enjoy a premium cigar. you have cigarette smokers and cigar smokers prefer cigars. we're totally under assault and this is labor of love and art form. we're not infringing on others, we should be able to have the right. >> john: san francisco banned indoor cigar loujs entirely. boston told them they have ten years to close. >> city of new york, unless you are grandfathered in, you can't open another cigar lounge. they create a lot of jobs. this cigar industry just in the united states is responsible for about 85,000 jobs. with this new pending fda

regulation where they are looking to regulate they know nothing about, we are absolutely destroying all these jobs and an industry that is really good. >> john: how would it destroy jobs? >> fda wants to regulate all tobacco. this is called a cigar. definition of cigar is very broad. that includes products like this when which is just tobacco leaf that comes in a tube like this. you just unwrap it and you fell it with? they are after products like these. unfortunately we fall in the same category. so what we have done is introduce legislation to narrow the definition what a premium cigar. it has to be all natural

tobacco. we have 160 co-sponsors in the house supporting this legislation to give premium cigars and exemption from fda regulation. >> john: this is why i say capitalists are worst enemies of capitalism. here is a guy it's okay to regulate the other guy but premium guys should have an exemption. >> i'm pointing out that we happen to be falling as the unintended consequence of something they are after but it's hard and nervous when the fda is down your throat and destroy your business. this box would have 75% warning stickers on it. every time i would make a blend i would have to submit it to the fda to make sure it would pass the blend so i could sell it. i would have to go through studies like a pharmaceutical

drug. >> john: richard blumenthal says cigars pose a serious risk to public health. >> unfortunately nobody has done the research. they are not educated by cigars. they don't have any idea about the concept whether you are a blue collar worker. you get together and have a conversation. >> john: they do stink but they can't tell consenting adults and cigar lounge, it appalls me. thank you can rocky. my next guest sold marijuana for 15 years. then a few months ago, the feds came. greetings from the windy city of chicago. people here sure are friendly but some have had a hard time understanding my accent. so to make sure people get every word of the geico savings message i've been practicing how to talk like a true chicagoan.

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>> john: biggest job today is drug dealing. interesting that word dealing. sounds nasty. i buy beer at 7-eleven, nobody calls the clerk a dealer, they call them salespeople. but marijuana sellers are dealers because pot is illegal. the fact it's illegal, $65 billion worth of illegal drugs of all kinds are sold each year. one of the people who sold a drug until recently is lynette shaw, what did you sell? >> i was licensed in 199720 sell medical marijuana for not for profit charity to work with ill people. >> john: you were one of the first dispensaries? >> we were the first in the nation. >> john: you sold for 15 years,

some 3,000 clients, you call them patients? >> they are definitely qualified patients. >> john: a lot of them is getting a friendly doctor to write a prescription? >> that is not the case whatsoever. we have a terrible epidemic, highest rate of breast cancer in the nation. 50% of our patients were women because they needed medical marijuana to fight the chemotherapy. >> john: i would argue anybody ought to get whatever they want but that is for another show. you have been a good business person in your community. mayor of junior town says you've been great. however, you are near a playground, near the children? >> we have a ball field using nine to ten months out of the

year, under hundred rules, we had to close during the ballgame. so we weren't open for the ballgame few months out of the year and rest of the year was empty. it was not used. >> john: mayor says proximity of the location has never been the cause of controversies? >> we had no complaints or problems. we got rid of the street dealers and children had less access to marijuana because the medical marijuana facility had aness safe place and there were no more street dealers. >> john: explaining that. you legalize marijuana there are more street dealers? >> we got rid of the street dealers. >> john: because there is a legal place, there is no incentive. >> having the patients nice place to go to and audited and transparent we were able to lower the prices. we were be able to make a safe

place and there was nobody on the streets. the patients would chase those guys away because they didn't want to threaten our permit. we cleaned up the streets by having the facility there. >> john: so president obama said i'm not going to be using justice department resources on this issue. federal law is illegal, state law is legal. last fall the justice department held a press conference that made it clear, federal law prevails. >> commercial marijuana operations are illegal under federal law and we will enforce federal law. >> california's laws have been heinld by people who are in this to get rich and don't care at all about sick people. >> john: you hijacked the law to get rich? >> unfortunately i have no money i never did make money. i have a charity. >> john: they sent a letter,

landlord you must be evicted in 45 days. >> they moved to take the property. it's like moving a hospital. we've been there 15 years. we had three offices, 8600 medical records and awards and records. at the time of our closure, we had 2500 patients who are crashing medically. we have overloaded public health services. they have thousands of my people coming in. also the street dealers are back on every corner. tragedy and crisis and mad house all at the same time. >> john: one of u.s. attorneys says she is protecting us from violence. >> where there is marijuana there is money and lots of it. these places are prime targets for robberies and violence. >> john: it's like money is

evil. >> i called the police and they went away. no problem. called the police. take away the bad guys like any other business. >> john: you say baning this is good for the bad guys? >> yeah, drug cartels the street dealers the police are going crazy. >> john: and planning commission and mayor and town council and closure would have the impact of decreasing public safety. >> absolutely. terrible crisis and unnecessary. >> john: mean and wrong. what is what government regulations often does. thank you lynette shaw. sorry for that. coming up, businesses are selling things that are totally legal. entrepreneurs that want to serve people, they are in trouble, too. c'mon dad!

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>> john: what are you allowed to do on your own property? fewer things all the time. a woman bought this house hoping to turn it into a wedding reception center and bed and breakfast. instead it sits there empty because her local government will not let her have a business on her property.

also, one man started farming these, oysters. his friends tried them, these are delicious. so he increased production and sold them to others. now, even though he farms the oysters on his own property, got seven state permits and licenses his county charged him with illegal farming. here are two criminals, shelly owns the empty house, gregg garret brought us these oysters. what is the problem? >> they have a zoning ordinance about 450 pages. >> john: there are state laws and city laws and county laws. >> in my case, zoning ordinance they said could prohibit our oyster farm even though we had right to have pig farm, buffalo

farm. >> john: you are licensed for agricultural and livestock. >> we are zoned for agriculture and livestock. >> but ios sters? >> they clean the bay. we're in a situation where the bay must be cleaned. >> john: how do they clean the water? >> each oyster cleans up to 50 gallons of water per day. that is how it grows. it takes in water and spits it out. in that there is a purification that takes place. >> john: we called the county administrator. here is the law and yesterday you can have livestock and horses. but here is why you can't have oysters. my smart producer talked to him for 12 minutes and still has no clue what the law is or what he is talking about. that is the case with a lot of american law? >> it's kind of this, if you have enough laws on the books you can find something on the

books that you want to accuse of a crime, there is a law out there to catch this them on. that is what they have done. >> john: in particular use is not listed such use shall not be permitted unless the zoning administrator says okay. gives them the power to run yar life. that is actually says even if it's not listed in this book, if you want to do something on your book and not listed in this book even though it is otherwise legal, even though it is not prohibited and not listed in this book means you cannot do it unless the zoning administrator says you can. >> john: gives him a lot of power. let's go to you shelly, you bought a big house on ten acres with the idea, you don't live

there. >> it's ten acres, 13,000 square foot house, it's really mansion. its beautiful property. it's really unique. you might find it in the east coast but in arizona you don't see them. >> john: and you wanted to use it as a small inn and have weddings? >> yes. >> john: you just assumed you could do that? >> we knew we had special use permit. property was in foreclosure so the bank owned it and was dying. the trees were dying. landscape was all but dead. the house was in disrepair, it had a number of break-ins and vandalism. so we saved it. >> john: then you moved to say, we wont want to have weddings here and they say no. >> that is correct. >> john: because it might bother

the neighbors? >> we went through a year and a half with a city appointed staff working on regulations for everything from restrictions, to fire suppression to make sure it was safe. >> john: and paid for a traffic study, $3,000? >> we had one of the concerns of the neighbors we would increase the traffic. >> john: road handles 35,000 cars a day, they say there is no problem. >> there is no entrance into the property but arterial road. we did a sound study. we had people come out at 10:00 p.m. and did a baseline sound level. then they compared that to all of the sound levels of hundreds of people talking at one time or cars. >> john: and that cost more than $3,000. >> john: we talked to one of

your local councilman. he is trying. i visited the site twice. i met with you and their lawyer. you have to have a lawyer several times. i read hundreds of e-mails. we had a five hour meeting. then we decided it my bother the neighbors. but the fact you have to go through that says a lot. >> we worked with their staff for a year and a half. we got full approval from the staff. full recommendation from the city's own staff saying this was a viable property. that it was going to make a great business. we had complied with all of the concerns of the neighbors. the staff regulates those e-mails and calls from the neighbors. they heard all the opposition, as well. to have less than a month with the city council who makes the final decision was a little confusing and frustrating as well to see that they then said

no. >> john: it's sitting there empty on ten acres of property where i would think it wouldn't bother other people. presidential candidate george mcgovern tried to do the same thing, start an inn in connecticut. it was shock to him. i wish during my years in public office, i had the firsthand experience business people face. we are choking off business opportunities. presidential candidate, they all should try a business to see what you go through. >> so many layers of regulation. the federal government the culture i am doing is agriculture. they say it's agriculture and covered under the department of agriculture. >> john: but the county says no. >> but they have zoned my land to do agriculture but oysters are worse than pigs.

how is that possible? >> john: thank you gregg garret, coming up, i hope you can change these rules. obama's epa says he has the power to regulate this. the way we exhale. i'll explain, next. [ tires squeal, engine revs ] ♪

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ask someone you know. check out twitter or your friends on facebook. you'll hear it all, unedited. ask me how i wish i'd done this sooner. ask me how it's the best investment i've ever made. [ male announcer ] tempur-pedic brand owners are more satisfied than owners of any traditional mattress brand. ♪ it's the perfect time to save up to $300 on select mattress sets. tempur-pedic. the most highly recommended bed in america. climate change is serious, it is urgent an it is growing. >> john: yeah, yeah, i've been hearing that for years. i'm skeptical that the threat is urgent. there is a threat. a lot of scientists say they are worried. soon after obama took office the epa ruled that carbon dioxide is a dangerous chemical and needs

to be regulated by them. so businesses are saying, that will essentially make thousands of jobs illegal. it's now in court. let's go to our legal expert about that. let's not. legal experts bore me to death, let's go to a weather specialist. his work is funded by nasa. you are guy that collects the measurements in the atmosphere. >> we started a third of the century ago. >> john: you found that it's warming? >> it has warmed in the last 33 years. for some reason it stopped warm in the last ten years which is one of those dirty secrets of global warming science. >> john: greenhouse gases are a real threat. why not if the epa says regulate carbon dioxide? >> i'm a lukewarmer.

adding co2 to the atmosphere should amount to some warming but the question is how much. some scientists think it's dangerous, it's going to be uncontrollable warming in the future. i think that most of the warming we've seen could well be natural and that that we may see little warming in the future. so really whether we do anything about co2 comes down to whether there is enough out there to be a threat to human health and welfare which is sort of what the epa tried to regulate. >> john: you don't any there? >> no, i don't think there is. in fact if you look from the economic standpoint, if you try to regulate co2, try to reduce how much is produced, all human activities require the production of co2. which carbon based fuel that produces co2 and there is no

easy way to remove them. like sulfur dioxide on coal plants and there is no way to get rid of co2. >> john: shutting down co2 is shutting down civil generation ya igs. >> we're basically outlawing all jobs but everything. >> john: even if we successfully could do this in the united states, would it make any real difference in terms of global warming even assuming the alarmist claims are accurate? >> no, that is one of the things that isn't pointed out. we're talking about forestalling a few hundredths of decade per decade based on the u.s. shutting down half of its economy. that as someone who measures global temperatures, that is noise level. we can't measure to a few

hundredths of agree per decade. >> john: why do they push that so hard? they know it will kill jobs, don't they? >> as an ex-government employee first job of a government employee is to keep his job. if your job is to regulate you do your best to regulate as much as you can. >> john: other thing they want to reduce fine particle pollution. there used to be soot everywhere but they want to go further? >> they are mainly interested in fine particulate matter, tiny particles that smaller than the width of of a human hair. they decided there is no safe level of. even though the world's health organization there is a safe level like most of the western united states is safe. >> john: you gave us this map?

>> it's created from a nasa satellite that i'm involved with. in this case it's a plot of fine particulate matter, this particle pollution. >> john: that appears as the read. >> largest amounts are in red where most dangerous amounts are is where virtually no one lives. the point here is most of this stuff is being produced naturally by nature. >> john: regulating in the united states will make no difference. >> we've got regulations in place and fine particulate matter has been cleaned up quite a bit. just the epa is on track to try to reduce the emissions of to it zero. that is physically impossible. it's stupid since nature is producing it anyway. >> john: speaking of stupid, let's say we have global warming this catastrophe about it thatt we shut down the economy for it. you say we don't know that it

would be harmful? >> that's right. because co2 1 necessary for life on earth, it's the start of the food chain. more co2 in the atmosphere may be good for life on earth. that something that seems to be verboten for an objective scientist. there are more benefits of co2 in the atmosphere. >> john: no benefit to huge amounts of regulation. thank you roy spencer. coming up, my take on illegal jobs and how government sucks the life out of people. copd makes it hard to breathe, so i wasn't playing much of a role in my own life, but with advair, i'm breathing better

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>> john: you want to start a bank? you better read this, and this and so on. all these, all the banking rules. got to read them all or you could be in big trouble. then on top of these there is dodd-frank, does anyone read all this? i doubt it. does it make life safer? no. neither do these, hundreds of thousands of pages of criminal law that congress has passed and keeps adding to. a few of these rules are useful but most don't help us. the shear volume of the stuff makes us less safe and less free. rules don't even stop the cheating. they help the cheaters because no one understands all that.

it makes cheating easier because it's the illusion of safety government must be watching out for you. if you don't watch out for yourself,some a reason that people gave all their savings to bernie madoff. they kill the freedom that made america prosperous. tonight we saw kids getting excited about being entrepreneurs. >> figure out what you are going to be selling for. strawberries and fresh lemonade. >> we raised $300. service with a smile and having a great time and put together with a plan. >> i get older, i would want to own my own business. >> john: that would be nice. when she gets older, will it be possible? in the name of safety some cops

shut down lemonade stands. >> we are not aware what the lemonade was made with but still you are breaking the law and we can't let you do it anymore. >> john: my lemonade stand was illegal. new laws burdens us and gives money to lawyers and accountants and compliance officers money that might accomplish good things. these rules torture some people like the woman in my special as being persecuted by tyrants from the epa. >> they come in and ruin lives. >> john: most of us are lucky to escape that kind of abuse but rules tell americans, don't try, don't innovate anything, don't create anything new. big government makes us all smaller. that is our show. thanks for watching.

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