sunday." >> john: people who love big government. they keep saying, and i think we can. but the disagree, by we they mie mean government. >> yes, we can. >> yes, we can. >> its fatal conceit. politicians think they can run our economy and run our lives but no, they can't. >> government can't even see escalators working in the nation's capital. >> one out of eight escalators are out of service at all times. >> at anti-glenn beck rally they

said government is off. >> when the brakes stopped workers on this escalater. >> they can't nation build. at least this politician understands that. >> we're not on doing just a good job in government today's. >> ron paul joins us and sarah palin who understand we can in america if we means you and i pursuing our own interests. >> no, they can. >> not the point of a gun or the threat of law but voluntarily, free people, volunteering, enjoying the freedom that made america great. >> that is would my new book is about. why government fails and individuals succeed and that is our show tonight.

>> john: i've been watching this program o'reilly factor. i could never properly this stuff. so here it is. just this week. why government fails but individuals succeed is tonight we're going to talk about that. first with sarah palin. so, you are a government person. how did you learn that? >> oh heaven forbid, you called me a government person. i got your book and i read it last night a as i flew back.

excellent book. got me excited. o solutions at least you, john, espouse and more voters need to think like reagan government too often is the problem. i want to argue with you on one point that you made. in the meantime, i'll tell you, the examples that you give throughout this book, really shed light on how nonsensical government is in assuming that it's role is way beyond what our constitution allows, federal centralizized government. >> john: and the people that you were hanging around on the today show. all those socialists. they have no clue about these ideas. [ laughter ] >> you know what, in is all our fault, john, as long as we continue as voters to keep sending people to washington, d.c., these people that are promising to bring home more

bacon for their district and congressional areas. we have no one to blame but us. up here in alaska, specifically that has been campaign promises by our congressional delegation. they bring home more bacon to the next guy and we keep voting them back in office. >> john: and alaska is more of a libertarian state and you have been sympathy to ron paul does that drugs legalization, prostitution for adults? >> well, when we talk about the fiscal issues. let me give you an example. when i put the kabash on the bridge to nowhere, i was publicly childhood out by our publicly chewed out. that wiatsz going to make their job more difficult in bringing home more money to alaska.

i was trying to make the point. our country is going to be involuntary convenient the federal government won't have money to share with alaska if we keep going down the road. it's accumulating a debt of $3 million a minute. we're not going to be able to sustain it. >> three million a minute is good way to make people think about it. but you didn't answer me question, drugs, prostitution? >> well, yeah, you think even more of a stronger libertarian view on some of those irons, war on drugs. i happen to believe that we need to continue do all that we can to discourage drug use. i would like to see the law enforcement prioritize time and resources and not bust a guy that is smoking a joint and meantime, find the bad guys and

try to help, prioritize and use common sense. >> john: i'm moving to something we agree. you are a hunter. we talk about if you want to save tigers, eat them isn't exactly true. it's been shown that conservation efforts have not worked but where people have allowed to own tigers and tribe allowing them to allow tourism. then the local people work to fight the poachers to preserve the animals. do you agree with? >> that you had really good points in that chapter about conservation. you gave the good example about the bison also. such and endangered species, once we were able to privatize the management of that species they are now relatively speaking in abundance. this is the point i wanted to argue a little bit because as a

commercial fisherman, what i have seen firsthand, japanese trawlers coming in and pretty much raping the bottom of the ocean floor before there was strict regulation. these japanese trawlers with 20 mile long nets being able to overfish and bypass the rest of us as commercial fishermen. pretty soon there is not going to be a species left for us to help feed the rest of the world. how is it done and you have the answer. how can government manage for future use a commonly held resource like fisheries? >> that is why we call the tragedy of the commons, when nobody owns it everybody takes as much as we can get so it's to give people some type of ownership right or this many fish.

my understanding it was done with lobsters but it's tougher in the ocean. >> in the meantime, we have to make sure that government has some appropriate resource to manage until we figure out a better way to get people to not abuse a resource or abuse the environment. how is it that we're going to allow governmental to efficiently use a limited resource that woof, that is tax dollars? we do that by electing people who engage in common sense and keep wasting money on burdensome overreaching aspects which i say is about 90% of what the federal government is engaged in. >> john: governor palin, thanks for reading my book. >> it's an excellent book. let me sum up real quick. one sentence that you wrote in people need to understand. your intuition tempted all to

believe that politicians will wise up and come up with a reasonable budget so america won't go broke. but reality teaches us is that government's budget has little to do with bookkeeping and cost benefit or reality or sanity. we need to change that or we're going under. [ cheers and applause ] >> john: right! >> thank you governor palin and i sure hope we change it. >> thank you. >> john: the ideas of this book took shape over the last 20 years. one person that helped was david bose of cato institute. how is my book? >> it's a great book, john. there are stories in there that people are fairly well read if they haven't been watching all your shows will find new. the chart that you have on osha and how workplace accidents were

falling before we had the osha law and you can't tell any difference. >> look, osha saved all these workers. then a researcher looks a line before osha, slope of the line is about the same. >> so there is a lot of interesting facts and pieces of analysis in there like that. also your theme as sarah palin was just talking about intuition. our intuition leads us a as stray about thinking about economics and politics. >> john: big one is planning. it's intuitive that life is a plan. president obama is so smart all the people in d.c. seem to be so smart. they should plan for us. >> that is right there. is a general sense in our own lives we need to plan. you can't put together a tv show without a lot of planning. you can't put together the apple computer company without a lot of planning.

yet when the government tries to plan for the whole society. that is too centralized. there is note enough room for competition and individual choice and not people planning with their own money to achieve their own purposes. you see it even with sarah palin who has libertarian instincts but when she sees a problem, her intuition, that government needs to come up with a plan to prevent overfishing. maybe the problem in the fishing area we don't sufficiently rely on property rights and markets. it might be difficult to figure out how to use property rights with ocean resources but that is the way we should be thinking. >> john: moving on to minimum wage. intuition, help poor people help low wage workers. >> intuition is so obviously. there are people that don't make enough money to support their families. why not have a law saying everybody who works 40 hours a week should make enough to

support their families. if you learn to think like an economist you begin to realize if you set the price of something higher than it's actually were -- your book is great -- but if the government set a price of hundred dollars on that book you wouldn't sell enough copies. >> john: intuition says tariffs will protect workers. >> why not only buy american computers and american cars. what we know from economic analysis if you do that then american companies will be protected from competition. they will get lazy and sloppy like detroit did in the 50s and 60s when they dominated world, they will get less innovation and we'll all end up with fewer services, fewer goods and fewer jobs. >> john: and less wealth.

you are executive vice president of cato instituted. let me show this quote from van jones. they say they are patriots but they hate anybody in the country that looks like us. the people. brown folks, the gays. there is this attitude to be libertarian the is to be cruel to minorities. >> i think that is silly. a lot of libertarians are minorities, and libertarian organization support feeding people as individuals. it was people with libertarian ideas who led april litigationists crusades. who fought for women's rights and fought for gay rights. in all these areas, van jones is wrong. he doesn't understand what individualism is. >> john: thank you david bose. coming up ron paul. first with the exception of ron

paul, politicians tend to vote on to spend more and expand government more. when we return, a plan to throw all the bums out! [ applause ] i take insulin,

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[ applause ] >> john: government fails but individuals succeed. that is the subtitle of my new book. government's failure the founders wanted limited government. they feared big government. one reason we get big government because many officials become career politicians and the research shows the longer they are in congress the more they vote to spend. so, leo and mark want to shake congress up by bringing in new blood. how? >> the main thing we're trying to fix the election process for

congressional incumbents. right now congressional incumbents don't really face competition. we think that really leads to the system breaking down. >> john: you are spending your own money to give people competition. how does that work? >> we engage in primary elections. people think elections occur in november. 85% of the districts are dominated by the republican party or democratic party. so the real decision over who serves in congress is made in the primary election. we want people, more people to go to the primary election and we want real competition there. the whole system is set up to get rid of competition. >> john: so you oh oppose them incumbents and try to get them out. >> we are looking for long term incumbents, one party district. we're not trying to change between democratic or republican. we're trying to get rid of incumbents. >> john: you don't take a

position republican or democrat? >> it's neither party and it's not necessarily anti-incumbent but disconnected, poll unpopularly with their own constituents. >> there are people that that poll poorly with their own constituents and don't have opponents? >> last cycle in 2010, 62% of congressional incumbents didn't have in my appear opponents. then they go into general election when there is no competition. where there is an opponent we are engaging to level the playing field. incumbent has all the money, lobby money, special interest money. so we come in with all effort and we basically tell the other side of the story. we get rid of this message me mo none reply. >> john: you buy ads and hip the challenger. >> and you talk about the frank go privilege they get to mail out free stuff.

and spend $10,000 in mail but we got a list. they spend $300,000 on mailing garage out. tax guys spend $387,000 among he was promoting himself taking a stand on wasteful spending. [ laughter ] >> nobody has the money to counter that. even if you had a challenger, that challenger doesn't have $400,000 to send out a mailing explaining this wasteful spending. that is your money spending out their promotional material. its government funded promotion scheme. >> we're doing this great stuff. nobody is there to tell the other side of the story. >> john: you have raised $12 million so far. any success? >> yes. we've had two races we've one an election and driven one incumbent out by releasing poll results. when the incumbent found out

they only had support of 25% of the voters in their district, i think that particular incumbent a decided maybe gag lobbying job. >> mark twain says politicians are like diapers and they must be changedo. some might say, look, he'll be elected again and what is wrong with that? >> there is nothing wrong with that. but they should not be making that pitch and people who are funding their campaign and giving these big campaign funds. they should be making that to the people. they shouldn't be coming to us, hey, we're good guys. just let us run again. we're doing a good job. if that is true, go sell it to your district. we're going to be there to tell them all the other things you won't tell them. we'll let the voters decide. >> john: thank you. mark, leo. next, presidential candidate ron

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[ applause ] >> john: government fails but individuals succeed. it took me a long time to figure that out. i spent years as a customer reporter calling for government to prevent ripoffs. and legislation, it took me 20 years to realize it does more harm than good. my next guest understood that years before. ron paul has done anything more to defend individual it will be. he joins us with from the campaign trail. you are in berkeley of all places, people are hostile to

free markets? >> the was ton of capitalism. right here in berkeley. nice crowds so we're very pleased. >> john: you have lots of students turning out? >> absolutely. we've been to three universities in the california and the turnouts have been fantastic, 5,000, one time close to 7,000. but don't look for reports in the newspaper. it hasn't showed up in the newspapers. we have to get the message out some other way. >> john: 7,000 is an unusual crowd. i would assume, i would wish these students understood your fiscal issues but mostly because they want more. >> but some of my speeches are 45 minutes or so. the whole purpose of my goal has always been those who are interested in personal liberty and anti-war. if you are for individual

liberty in the social sense you have to be for individual liberty in the economic sense. if you want to lead your life as you choose you ought to be able to spend your own money you choose. i try to put this package together for so long, close to hundred years now we've had people think there is economic liberty and social liberty and two different groups defend each half and i don't think it will work unless we put it together. >> john: let's talk about economic security. our biggest program is medicare going broke and social security, too. president obama said we would not be a great country without them. what wo do you say? >> we're going to be a broke country with it. if you are broke brother it's not a great country. what we are witnessing the country is broke and nobody wants to admit it and that is why why they are fighting over a pie that is shrinking. >> john: you said you would cut a trillion dollars right now and

you basically were ignored? >> because i see us being in a debt crisis which is a result of a spending crisis in a lot of republicans claim they care about but they don't cut anything. the proposal on the table for the republicans is balance the budget in 30 years. i just laugh at this. the communists used to have five-year plan. we have a 30 year plan. no real cuts. >> john: even these modest cuts by paul ryan is being called cruel social darwinism by the president? >> i didn't vote for the budget. i empathize with his problem. he doesn't cut it. but look at the grief he gets. >> john: you want to pull our troops back. i certainly agree. we have 50,000 soldiers? germany, 36,000 in japan. let me 'push back on some of

these issues. you say it was right to go to go to war in world war ii and retaliate in afghanistan but the other interventions in mistake, but others would say. bosnia and kosovo and serbia and kuwait, were they a good thing? >> i don't think so. some people, wonderful turnout in iraq and mess in afghanistan. this long term consequences but the rule of slaw more important than a token success by bombing people and killing a bunch of people. who knows what would have happened if we had not been there. i think we have to protect the rule of law and not allow president go to war without the consent of the people without a declaration of congress. >> john: thank you dr. paul. i admire your stamina. i want to say the last time you

were here if you were fired of this, you only thing you minded you didn't get exercise. i said how often do you like to exercise? >> twice a day. i like to walk in the morning and ride a bike in the afternoon. when i don't get adequate amount of exercise i get very grouchy. [ laughter ] >> john: coming up, some people want govern government to do more. that the demonstration someone held up a sign, government is awesome. we'll show you how awesome it is when we come back. [ applause ] when bp made a commitment to the gulf, we were determined to see it through. here's an update on the progress. we're paying for all spill related clean-up costs. bp findings supports independent scientists studying the gulf's environment. thousas of environmental samples have been tested and all beaches and waters are open. anthe tourists are back.

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[ applause ] >> yes, we can. >> yes, we can. >> john: politicians say that, but no, they can't. and no, they can't the nasty title from my new book, three people left alone do everything better than clumsy government. let me ask you, i'll give you hundred bucks if you can name anything that the government does more efficiently than the private sector. >> spend money, the private sector by wasting money they would do that. [ laughter ] >> war, someone says that may be a job we want government to do

but there is no evidence that our military is more efficient than the private contractors that wage war. i don't think we want private armies. government is not more efficient. but one more video that the government does well. >> washington wants to control more and more of our lives but can't even fix our own escalators. quarter of a million people slowed up for this rally. some demonstrators experienced a different horror show when the brakes took four in the hospital. >> one of these es indicators is out of service at all times. >> this is horrible. >> see people that were supposedly working on escalators

sleeping on the job. >> and people want more government. we're joined by a dj who was a reporter on that video and nick gillespie. what did you learn? >> what did we learn? it's horrible. if you want to see private escalators working well, go to a mall. don't go to d.c. because you probably land in the hospital. >> d.c. is a city of museums and greatest museum is broken escalators. you can't get away from it. they are talking about taking eight and a half months to replace over 500 escalators and they are figuring 8 1/2 months it's going much longer than that. >> john: why do they happen with government. >> in the early 90s they shifted away contracted the workout and they took it inside and took into the public sector thinking that would be more efficient.

cut out a middleman and cheaper and better. >> ihd not cheaper because they end up paying the mechanics much more. and there are too many of them. there is four es ka escalators per one mechanic. they say within the ranks, 10% of the work force does most of labor and private sector 25% is doing most of work. >> john: we don't say the private sector but it's better. >> if you screw up there are consequences to it. what happened with the d.c. escalators, it's same thing that happens with public schools. if you screw up, you get more aid or get another chance and another chance. in the end because the money is not coming out of your pocket. you slide a lot longer. >> there is no competition.

where there isn't a marketplace, you really don't have that incentive to do better. >> john: and you try to confront the d.c. officials about that? >> they were mum. >> and then road building? >> road building is a socialized centralized mess. every city, every state. federal government is out of money. there is a ton of private capital that can be brought in to build more road capacity that would free up congestion. >> john: private roads sounds like, you can't use my road. >> if there is heavy congestion you will pay more to use the lanes. but the socially hov lanes and empty. it's ridiculous. you look at 91 freeway and you will pay $9 if you want to go faster. for people who have jobs where they make actual money, it's

nice to get there on time. >> this is the whole point, it's not just exclusive it adds to your options. those moments when you need to go fast you will pay extra to get there. if you are not in a rush you can sit in congestion. more people that pay, it means people on the free road that get a quicker ride, as well. i hay the to use terms like win-win. why would it be wrong to have a private company to build extra capacity that is going to help people use the toll roads and people that don't. >> john: and win-win, that is what capitalism is about. >> and in paris there is a tunnel and they move much more quickly because it was privatized. kennedy you are from the music business where most people believe government can. how did you come to understand no, they can't? >> it's really interesting for a lot of liarntsz we knew or knew

what the word meant. i had the great privilege with discussions with frank zappa. i was terrified to open my mouth because he would expose me for being a total fraud. when i would listen to his conversations about censorship i was moved. this was an area i was familiar with. i was getting a lot of heat from conservative groups for being a fan of nine inch nails because they have dirty lyrics. i was able to maintain my straight edge and enjoy some good music. >> john: in the recent video i was struck by one person holding up a sign at jon stewart rally that followed the glenn beck rally that said government is awful. >> one hopes it was ironic gesture. there is a role and place for government. it's the kind of create a stable structure by which people can

get on with their lives. to give some law enforcement things like that. when it gets much beyond that, it really starts getting in the way of people coming together and new ways of doing things to make it much more interesting and choice driven world. >> john: thank you kennedy, nick gillespie. coming up, how i went from being dumb to not so dumb. thinking government can so writing a book, no, they can't. more when we return. ♪

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♪ the allstate value plan. dollar for dollar, nobody protects you like allstate. here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. >>. >> john: welcome back to my show about my new book. this promotion i would be ashamed but i watched bill o'reilly. he can do it i can do it. but now it's your turn to ask questions.

>> i am a college student and my roommate is a liberal. whenever i bring an argument but government fails but individuals succeed. he recites the example of europe. they have larger government and lower poverty, better health care and better education. what would your argument about europe is bigger government and potentially they have more prosperity in that sense. >> john: i would say they don't have more prosperity. america is more prosperous than europe. we are much more diverse and we create many new jobs. some of the benefits people in europe have, say the free healthcare they get because they free load off our free market system. a lot of new drugs. they have artificial knees they got from us. europe is now breaking down. it's unsustainable. america is unsustainable but greece we've seen it. spain and portugal, it will

happen in japan. they are worse off than we. i'm totally against legalizing drugs. i've seen it destroy individuals families and neighborhoods. you might be able to convince me of marijuana but any other drug i would be totally against zblejts once you are an adult who owns your body? 90% of the people that use the drugs do give them up. does it hurt yourself? >> but i've seen people hook on it at a young age. they die and. >> john: government statistics quit on their own. >> marijuana you might be able to convince me but any of these other drugs, no way. >> john: i can't convince everybody. [ laughter ] >> john: who else? yes, sir. >> educating people how bad the government is all well and good but how much education do they

need until some real change happens so we actually start moving the arrow of bigger government back to smaller government. >> thomas jefferson said financial progress for government to grow and liberty to yield. ron paul is citing he is getting more of a response than ever before. still 10-12% of the vote. it's not intuitive to think free people being left alone would be better than our wise protectors. since you are young, you get it? just tell your friends, we need to get to the young people. >> in researching the book that actually surprise the book, some people may be surprised to find in the book. >> john: the extent of the horrible i had si of some these bureaucracy. tsa the horrible stories about people having their privacy

invaded. did you know in the law that created the tsa there was an exception if a city wants to opt out it can. san francisco did. what is the result? in san francisco, the lines move more quickly. they move people around. so now all these other airports around the country say tsa, we want to oy out, too. we know you are spending ten times what the private contractors but we don't like you we want to go private. tsa doesn't even respond for a year, they don't respond to letters from airport directors. then they finally say, we don't think it's advantageous to the federal government. wouldn't like mcdonald's like to say that burger king, we don't think it's vantage us on you compete with us. once they grab power they never let go. >> let's say we do legalize drugs. you still going to have criminals looking for a market to exploit. so what do we do address that

issue? if they don't have drugs to market they will go to something else, prostitution or whatever they may be in to. >> john: legalize prostitution. >> what point do we stop? >> john: when we entered prohibition, what are al capone henchmen going to do? if prostitution were legally, those people would find real jobs and many wouldn't be criminals anymore. you are not buying it. the guy in front of you buys it. >> i read give me a break and very strongly, prohibition is the problem. for liquor and i think legalizing drugs is answer to our problem. >> in portugal they decriminalized drugs and there is a less drugs. in holland they legalize marijuana, fewer teenagers some smoke. our assumptions are often wrong. >> on college campuses when we

bring up the idea of libertarianism the first reaction is moral. liberty in the free market is best thing you can do, what am i missing? >> john: it is moral to be a free person to pursue your own interests and you do better when you treat people well. that is how life works when people are free. we're out of time for questions. coming up my personal learning curve. how i came to understand that the political class is just arrogant when they say this. >> yes, we can. >> yes, we can. >> yes h. ♪

>> john: when i got my first job

as a reporter. i first learned that news story must show attention to a terrible problem. poor people not spending enough time on the internet and crack cocaine and governments should do something. it seems like common sense. i bet you said that. even some are libertarians. there ought to be a law. that is what we afor many of us it's intuitive. politicians and bureaucracy take those sentiments and run with them. to fix the problems, feds alone passed this many laws. like 150,000 pages of rules that are supposed to make our lives better. when, legislators, what laws did you pass. they never ask did you get repealed.

so politicians pass more. they aren't malicious, they don't want to waste our money and take our freedom but they are ignorant. they don't learn from their mistakes. that law failed. let's give it one more time. spend more. this time our central planning will work, but it won't work. top down doesn't work. no group of people can be trusted to plan other people's lives. as they said, curious task of economics is demonstrate to men how little they know about what they think they can design. politicians just will not learn that. it leads them to say this. >> yes, we can. >> yes, we can. >> yes, we can. >> john: but no, they can't. gee, that is the title of a book i saw recently. it's a good book to have around but i think the subtitle of my

book is key. governments fail but individuals succeed. saying that government is not the way to solve our problems but isn't saying humanity can't solve our problems. what i finally learned after 43 years of reporting, despite the obstacles, voluntary free networks of people solve all sorts of challenges. government doesn't deliver but individuals do, markets do. markets aren't perfect but they allow for a world where prudence is rewarded and world which people are more likely to and take risks when more people prosper. that includes the poor. the poor will always be with us, if free markets were unleashed it would be much less true. so filled with technology and charity that my children would need to read about poverty to know what it was. government can't but individuals

can. that is our show. now, go buy my book and go to john stossel.com. thanks, have a good day. [ applause ] [ male announcer ] want your weeds to hit the road? hit 'em, with roundup extended control. one application kills weeds, and stops new ones for up to four months. roundup extended control.

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at once. innovations like these are extending our reach so you can extend yours. and now, even at 30,000 feet you can still touch the ground. i'm a wife, i'm a mom... and chantix worked for me. it's a medication i could take and still smoke, while it built up in my system. [ male announcer ] along with support, chantiis proven to help people quit smoking. it reduthe urge to smoke. some people had changes in behavior, thinking orood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reactioto it. if you develop these, stop taking chantix and see your doctor right away as some can be life-threatening. if you have a history of heart orlood vessel problems, tell your doctor if you have new or worse symptoms. get medical help right away if you have symptoms of a heart attack. use caution when driving or operating machinery.