welcome to a special edition of the stossel show from where are we. in tallahassee from the campus of florida state university. i'm here because i'm on a book tour for my new book, no they can't. why government fails but individuals succeed. do individuals succeed? >> yeah, they do. >> individuals do well. >> can't government solve our problems? >> no, they can't! >> and that is our show tonight. all right. no, they can't is sort of a nasty title for a book.

it is so negative. what is refers to is my reaction to all that yes, we can enthusiasm.org thduring tht election. and frankly we can' can if we s we can. you you have to be free to try things and speak to have fee speech. college is supposed to we a laboratory of free speech. however, on some campuses that is not the case. at fsu, are you pretty much allowed to speak? >> yes! >> that is good because you don't go to these people's colleges where other stuff has happened. this is greg l who runs a group called fire which stands for foundation for individual rights and education and you come to the aid of students who get sensorred.

publicly reading a book. florida state university has red light speech codes that would be blast out-of-court if challenged. >> what is a red light speech code? >> the way we rate codes unconstitutional on public campuses and don't live up to pub private ones. i believe it is offensive or hurtful comments. you can see your code at the fire.org and check out everything that happened at florida state university. that is the thing that everybody thinks their school is the exception. >> don't we want the adults the central planners to protect us from offensive comments? >> and this is one of the things. when you have the authorities in place th the administrators tend to ban the speech that is offensive to them for kit seizes them. for instance at arizona state university that criticized

tuition hikes. it is amazing how self-serving these could be. >> and if you banned offensive speech that would take away much of what goes on in sports events? >> it seems that the overall principle is make everybody guilty in advance. pass a code so broad that every single one of you is guilty and leave it up to an administrator to decide who they are going to punish. >> go to two students from other schools who turned to fire for help. eric phillips. you got in trouble for putting a ron paul poster banner in your dorm room window and chris from the university of cincinnati you wanted to collect signatures for a petition drive. your group was told you could only do it in a fee speech zone. what is that? >> it is a corner of the campus that they only allow demonstrations pickets orallies to occur and it is not exactly a well traveled part of campus. we stood there trying to get

signatures for half an hour and. >> you were getting signatures for a right to work drive? >> that's correct. in ohio we can gather signatures to put an issue on the ballot. and this was right to work. >> we called the university and he said he wanted to do something on very short notice. activities involve resources and we have to schedule the resources. >> they said we will allow this this time even though you asked within our five business day waiting period but that if you do it again you will bedenied and if you are denied and do it anyway public safety will be contact. >> and they he only said you could do it this time after you got fire to help. >> that's correct. >> and they keep on changing their story. first they said that you will be arrested for trespassing if you actually tried to engage in free speech on campus and then clipped that no, this is only for people who are offcampus and then tried to make the argument it was only for

evangelical preachers. it you are trying to defend the unconstitutional policy by making this more unconstitutional. >> we are not here as an entity of ohio to provide a free speech forum. that's not our mission. our mission is to offer classes. i could say some universities saying that sounds reasonable. >> i feel like this is what administrators are doing. they are duping students into agreeing to terms that censor themselves. texas tick university had one 20-foot wide gazebo for all 28,000 students as the university as the only place to engage in free speech active etans. the idea that is the minimum they have 20 do to protect classes is just nonsense. >> you have a ranking of ten worst colleges for free speech. you put his school on it. did you take any heat from that or are students okay or they know about it? >> they know about it.

as soon as that list hit huffington post it was all over facebook. 20 of my friends heard about it before i even knew about it. >> eric, you wanted to put up a ron paul banner. >> six months ago i put 7 up a ron paul banner and in three hours i was told i had to take it down. last election someone had an obama hope banner throughout the year. this is selective censorship right here. >> maybe they changed the policy since then? >> they did indeed, but throughout my whole dorm building that i was in people left their auburn banners in their window for four months afterwards. >> they told us all materials regardless of content are prohibited from being posted in residence hall windows. >> i seem to be the only exception for that. they enforce that policy only on me, not the sororities or the football players on my dorm.

>> they imply they haven't got oooo-ooooen around to the others yet. >> they came into my room within three hours of me putting it up and said they had to watch me take it down. everybody else's was up for four months. it wasn't until the second letter from fire that they take it down. they put it right back up after a month. >> greg, has this happened other places. >> this happens other places. we have it on the back of a t-shirt, the university is already are doing the right thing. like no, this has always been our policy. you didn't like a policy and then claim this is always the controlling policy when we have evidence that they kept on allowing other people put up other signs but one thing you couldn't put up is ron paul. >> in 2003 the university of alabama ended a ban on window decorations after students put up a flag. all the students said how about you tell us all to take down

the american flag. and they went oh, we give up. >> the university of texas ended it's ban. i could hear them saying these are beautiful buildings and we don't want all these signs hanging out there. >> but they show what it is about when they do is selectively and also the idea that students aren't allowed to engage and be involved in the political process. the idea that you can't have your obama or ron paul or santorum sign. that is not supposed to be something that you are supposed to be afraid of and hiding. that is a good thing. university administrators in some cases i think they would rather have everybody shut up. >> in his cool apparently you can a an obama poster up. thank you. fsu where i am now is one of the few schools where i have been to where for some reason these students understand that government often fails but individuals succeed.

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we're back at florida state university. i'm here because i'm on a book tour for my new book "no, they can't, why government fails but individuals succeed." i say no they can't in response to the last presidential campaign they are saying yes, we can, we as government. so that i say no, we can't. still we need government. we need government to do some things. let me ask you students, can't government create jobs? >> no, they can't! >> well, these students understand that because they took courses from a lot of smart economists but these two

in particular. joe calhoun and jim guartney. [ applause ] what do you teach them? do students understand economics and have a good understanding when they get to college. >> i would like to think they have a better understanding after they leave college and leave my class. >> what do students not understand? >> incentives matter and this is the inclination to think that if in fact the intentions of a policy are some kind of a program or good that that means the results are good. one definition of economics, economists are basically scoundrels who teach the way the world really works rather than the way people would like for it to work. >> that is so rude. >> but to truthful, too.

>> narcissisticalla i'm interviewing you actually because you teach sometimes using my videos from fox business and you have helped convert them into the dvds which the college has used to teach microand macro economics. what videos do kids like or learn from? >> what that they like that pertains to what we had just been talking about the one acyut the broken window fall where you throw some stuff and break a window. >> that creates jobs for a glassmaker or a janitor. >> exactly. but we talk about it is not just jobs that it is production of goods and services that people value. if it was jobs we could basically dig holes and fill them up if that is what created prosperity but, of course, unfortunately it doesn't. >> some other examples, i would think the big one that would bother these students if they knew about it is that my

generation is going to rip all them off because of medicare and social security. you are going to pay for my retirement. thanks, i appreciate it. what is wrong with that? that was the deal we made to take care of old people. >> the original social security program was billed much like a retirement plan where the government will take the money out of the pay check and put it in an account for you and when you get old we will pay you back. it was sold that way but quickly mor morphed into what s today. >> they are young. their parents paid for them and now they will pay for us. >> the debt is becoming larger and larger. say you were a bankers and wanted to come in and borrow funds from you and essentially said i'm making $220,000 a year but i'm spending $360,000 a year and i owe a million would you be willing to loan me

another $300,000 so i could go on a vacation or take some kind of a trip you would think they are risky, wouldn't you? >> well, if you can print money i would figure i might get paid back. >> and that is something that comes out in the classes. we talk about when the debt becomes very hot relative to the revenues that are going to stream in this order to finance or pay the interest on that particular debt it is going to create problems and, of course, we see that in greece and we have seen that many times in the past, particularly when a government has a central bank that they will resort to the printing press in order to pay down that debt or pay for it through inflation which is just another kind of tax. >> either going to stiff us old people and not pay our medicare which they will never do because we vote, you don't or they will print more money and maybe have massive inflation. >> that is certainly the two major options that we can

expect. >> it took me too long to -- what it took me too long to understand is what makes the country prosperous and people think it is natural resources or democracy and that is not it. jim, you publish a list of countries and their ranking of economic freedom. tell about that. >> a project which the godfather or really the founder of it was milton friedman clear back to the late 1980s. the idea was you would develop a measure objective as possible that would identify the consistency of the countries, institutions with economic freedom. that is to say with voluntary exchange, reliance upon markets, minimal kinds of taxes and a government that is basically protects people from aggression by others and protects property rights. and we -- >> protects them from aggression from others but otherwise pretty much leaves them alone. >> that's right. there has been more than 50

scholarly studies looking at the relationship between economic freedom and investment and economic growth and high levels of income and low levels of poverty and every one of those studies. it is remarkable it has shown that economic freedom leads to prosperity. >> the countries at the top of the list. >> hong kong and singapore but closely behind those are switzerland and new zealand and australia. the united states used to be one of the really top five ranked. in fact we were in the top three for all that period of time from 1980 to 2000. >> but now we are down. >> the last decade we have fallen down to 10th. so that is a pretty substantial reduction. >> still, the top ten are good places to live. at the bottom of the list? >> the bottom of the list you find countries like central

africa and myanmar,. >> north korea. >> north korea. >> you don't want to live in those places. >> that's right. very difficult places to live in for sure. >> you have a college version of stossel in the classroom, my dvd. i started this for high school students and figured that college students wouldn't learn economics from television. >> but the thing -- >> my programs are too stupid to be for college level. >> but the thing that is great about the videos at least the clips that we have put together on the dvd, be john, is they bring economics come alive. and we wanted -- i think it is important to -- >> that s. that too. is that true, students? >> yes! >> let me tell you here is what happens every time i show one of your clips in class it will come up and within a split second they realize it is one of yours and within the audience i hear this, yes!

>> why? >> because they would like to hear you rather than us, i think. one more example of intuitive government policy we will create jobs and economic activity with stimulus. what is wrong with that? >> the problem with stimulus is you really need to look at it from the economic point of view and that is thinking about opportunity costs. let me give you an example. north of town we have the lake jackson eco he passage which we refer to as the turtle tunnel. through the stimulus package, the department of transportation received money to build a tunnel which was pedestrian/wildlife but i don't think any pedestrian has been through there and according to the government's own study the $3 million created one full-time job. when i look at it i say it is nice to sa save turtles. >> turtles are appreciative. >> what did we have to give up in order to save the turtles and if you look at the alternatives it could be that

maybe what we gave up was something more valuable than saving the turtles. >> i bet it was. $3 million. you could do a lot of good. >> you could do a lot of good with $3 million. >> thank you you. when we return from florida state we'll see just how smart these students are. after that. after this. mine was earned off vietnam in 1968. over the south pacific in 1943.

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thank you. we're back at florida state university. we are hear because these students learn about economics by watching fox business network. okay. no. in well, maybe some but some of

them don't even get fox business network. you have to have ask for it to get it maybe. the truth sim' a narcissist. they learned about it watching some of my videos from fox business network and that other place, my previous job. i'm curious what you have learned. what i learned about economics is so much i thought was true you turned out to be the opposite. what i thought was so is not so and economics teaches that. the curious task of economics is to teach man how little he knows about what he imagines he can design. so that is the lesson of economics. let me ask some of you you what you learned or what video you saw, what surprised you. >> your sweat shop segment really surprised me. >> sweat shops. we know that they are evil. that college students demonstrate against sweat shops in the third world, the factories that pay people three bucks a day to make nike shoes

or ipods, whatever. what did you learn? >> i learned that sweat shops are actually the best shop opportunity available in those countries. otherwise the individuals would have chosen a different job. >> because they have free choice. they are not slaves and they choose to work in the sweat shop and if do-gooders in america ban sweat shops. >> then they will have to resort to other job opportunities that are not as good such as prostitution or other such jobs. >> in bangladesh they turned to prostitution instead of making three bucks an hour in the factory. thank you, american do-gooders. that was helpful. >> the thing that stood out to me the most actually first was the mustache, to begin with. >> people have mustaches.

>> yes, but yours does stand out. >> anything economic? >> yes. >> i really like your segment on outsourcing. >> where companies ship jobs overseas, taking jobs from americans, evil. >> well, in your segment you tried to say that people actually did gain more jobs in the long run but in the short run they lost them. >> how did they gain jobs in the long run? >> well, the particular person that you interviewed said he he would have to lay off people and by outsourcing he was able to gain more and he was able to hire more people in the long run. >> because they did stuff overseas cheaper and that brought money back to america and he hired more people in america. >> yes. >> but politicians win elections saying i'm going to ban outsourcing. >> well, they should watch your videos. >> all right, well, students, thank you very much.

when we return, how do you save animals from extinction? well, some people here in florida say the way to save animals is to eat them. what? we'll explain. ♪ ♪ [ multiple sounds making melodic tune ] ♪

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welcome back. thank you. we are at florida state

university because i'm on the book tour for what i think is a wonderful book called "no they can't, why government fails but individuals succeed." and individuals succeeden in some unexpected ways. consider for example how do you save animals, preserve, protect endangered species. here in florida and other places, too. individuals are doing that in some unexpected ways. quail have been vanishing in america. they declined by 80% but here in north florida there are plenty of quail because hunters like to kill them. now, that doesn't sound right. how can that be? so brian is a florida fish and wildlife commissioner here to explain. how can that be? >> what a lot of people don't realize is that sometimes you have to hunt an animal to save an animal and that is true in the case of this little 6-ounce word we call the bobwhite

quail. the numbers here in north florida and south georgia are so strong because individual land owners with their own resourcestheir own oooo-oooo driven by a passion for hunting quail have been protecting and conserving wild quail habitat for probably more than 100 years. and they have done it to such a degree that they have saved about 300,000 acres of this wild quail habitat. i know that probably doesn't mean a lot to folks out here. you are from new york. central park. 300,000 acres is 350 central parks lined up side-by-side just north of tallahassee here are being saved by individual land owners. >> so on this property they make -- how do they save the quails? >> well, they he intensively manage the land for are quail habitat. what we have outside of town here is a habitat called long leaf pine. big stately pine trees and underneath the pine trees are open savannahs of grass.

in order to manage for these open savannahs of grass you have to use fire. i know it is counter intuitive but fire is nature's original and best wildlife management tool. it is expensive when you try to burn in a controlled way. here we do controlled burns to burn out the thicket so the grasses can grow and a the quail can use the grasses for food and cover. for these land owners they are willing to put everything into it. >> and you want small fires so you don't get a big fire later that kills all the quail. >> you have a lot of dense underbrush if you don't burn and then you have the big wildfires that get out of control. >> you are the fish and wildlife commission. why don't you preserve the quail? >> i wish we had the resources to do a and incentive to do it as much as a private land owner. private self-interest is a better incentive a lot of times than anything else because it matters to you. you own the land and know what

you want to do with the land and you pay and put all your energy into it. >> and these private land owners just like to hunt quail or charge other people money to hunt quail. >> primarily they hunt quail on their own. there are examples of land owners that do charge. this is a tradition that has gone back more than 100 years. these hunting plantations were founded by the families that had relations with john d. rockefeller and family members of carnegie, the big political positive for salmonella from ohiguy from ohio who called tey roosevelt that damn cowboy. these have been in lair family for againations. >> do they let others go on the land to look at the quail. >> it is not open to the public. >> that is selfish, private. that doesn't sound good. >> at the end of the day results matter. wild quail habitats are being protected and for all the right reasons. >> in texas, ranchers conserve

to make money. >> that's right. that's right. >> so in texas we have a case of hunters and ranchers that are actually saving animals that are already on the endangered species list. and there are hundreds of ranches in texas that for years have been raising cattle and they made a business decision to switch to raising wildlife and they want to race wildlife. >> antelope. >> exactly. some native to america but some native to africa, asia and europe. >> animals that are disappearing in africa, asia and europe. >> three in particular. there are three african antelope that are either extinct or nearly extinct in africa but guess where they are flourishing. >> texas. >> deep in the heart of texas. they are flurryishing because hunters are willing to pay $5,000 to $10,000 apiece to come and hunt the antelope in texas. ranchers and land owners have every incentive to husband and grow those a species.

>> now, we have a nearly extinct species coming back. i would think the federal government would be thrilled by that. >> you do have to get an exclusion from the federal government and initially the federal government granted the exclusion because it did recognize the conservation value. the ranchers started with a few dozen antelope back in the 1970s and today they have 17,000 antelope on their ranches. it is effective. guess is what. animal rights groups didn't agree and they sued and they went to court. it has been in court for a number of years and as of last week all of the court remedies have really been exhausted and now the hunters and ranchers have to go to the federal government to get a special take permit if they want to ten the hunts. and these take permits are not necessarily the easiest things to get. they are pretty cumbersome. >> what is going to happen. >> the ranchers believe in five years the number was of

apartment hope will decline by 50% and in ten years may only be a few hundred left if any at all. >> when the politicians say, yes, we can save the animal, i say this. you would agree? >> i would agree. >> thank you. next, change the subject. are your teeth white enough? well, if you don't think they are you can now thanks to modern technology get a product that will help you make them whiter. but you better not get somebody to help you make them whiter around here in florida unless they have a special license because those people could go to jail. what am i talking about? we'll explain when we return.éy

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thank you. welcome back. we are at florida state university. now, for the really important business. my teeth aren't all that white. i can live with these. but some of you want whiter teeth and today there are products that will help you whiten your teeth. >> it is a fact, whiter teeth will improve your appearance and can even enhance your lifestyle. now, there is a revolutionary new system that incorporates light technology to whiten your teeth in as little as ten minutes. our unique white light system works at home. >> it is a gel mold you put it on your teeth for about ten minutes and afterwards your teeth are whiter. but it is a little complicated and so some people want help doing that. but, i here in florida you betr be careful if you help somebody because you could be in trouble. here to explain why that is is elizabeth foley. she works for the institute for justice a group that fights stupid rules. explain this one. >> thank you.

>> one of the things we do at the institution for justice time and time again is fight crazy laws like this that interfere with your constitutional right to pursue a lawful occupation which most people don't even know you have that constitutional right but you do. here in florida, we have been in the local drugstore and you can g go in and buy the produc. the ones with the trays and the fancier more expensive one with the little light that you use. anybody can buy that. i have an 11-year-old daughter and she can walk into the walgreen's and buy this product and take it home and put it on her own teeth and my teeth, your teeth, her friend's teeth. perfectly legal. >> let's say i'm a little dumb and i want her to help me and ile pay her ten bucks. >> the florida dental board has taken the position anybody

other than a licensed dentist who assists or instructs any one in applying a teeth whitening product is engaging in the unlicensed practice of dentistry and it is a felony and they can throw you in jail for five years actually and $5,000 per incident. >> and we called the dental board and asked them to comment on this and they would not respond. but this happens all over the country by all kinds of professions. we don't want competition. when ophthalmologists used to put in contact lenses and they didn't want competition from drugstores and optometrists and they outlawed it and at the time contact lenses cost $400 and as soon as they got rid of the restrictions the price shot down to the $50 it is now. they have a reason. this is your eye, you don't want people putting stuff in your eye. >> yeah, they always say it is health and safety even though they have absolutely no data to back that up whatsoever.

if my daughter can buy this. >> what is the threat? >> it is the exact same ingredient. if you go into a mall here in florida and you go to a small business owner operating a kiosk they will give you exactly the same product. >> and this exists in other states. >> that's right. and many states. >> malls have similar places. >> many states don't regulate this at all. many states do. increasingly so probably because it is a bad economy and teeth whitening is an $1 billion a year industry. when you have kiosks doing the same thing that dentists want to do it clearly takes away from their income. >> the dentists charge $500, the kiosks maybe $100. >> the idea is to limit the supply of people who can provide teeth whitening services outside the home. you cut down supplies and you can raise prices and charge whatever you want. it is pure anticompetitive

behavior and the only thing they are protecting is their own pocketbooks. if they were trying to protect us you couldn't buy that at the local drugstore. >> maybe that is why they didn't come here to talk to us about this. thank you elizabeth foley. when we return, more from florida state. students who want to criticize me about something or ask a question, please come to the microphone. you will have your chance, when we come back here. picking a wireless network is a lot like picking a team.

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thank you. we're back at florida state. now, to hear fro some of the students. what is your name. >> i'm mara rivera.

you argue against government type of interference and central planning and politicians often get it wrong and yet obama and most of the politicians they often have very smart economic advisors they he have degrees from harvard and your alma mater princeton. we would you say that those economists are wrong? >> i have watched their schemes for 40 years now and again and again they fail. libertarians aren't saying no government. the worst places to live are the african country where are there is no rule of law. you are afraid to build a factory because your neighbor may take what you make or the dictator may confiscate your whole company. we need a little government. but these politicians are power mad and make our lives less. >> i'm lucas daniels. i'm from mcclain, virginia.

there is a debate going on on campus because there is legislation coming up that will effectively rise, florida state tuition to what the national average would be. we enjoy highly subsidized education here in florida. >> too bad, get over it. >> the debate is if we higher the tuition it would disincentivize kids to go to school but would create a better university because we would have more funds and revenues. i was wondering your take on it? >> why should other people some of who might be less affluent than you pay for your education? and does florida state use all the money all that well? there is not waste around here? [ laughter ] >> there is laughter there that suggests there is. let's just leave it at that. let's go to the next person. >> thank you very much. >> my name is kayla westbrook. i'm he from tampa, florida. besides our amazing economics department a lot of our

professors are really liberal and do you you think it is worth it to stand up you to some of the professors knowing that they can lower our grades? >> what do you mean they are really liberal? >> in the classroom they are clearly biased towards more liberal policies and make comments. >> bigger government. >> bigger comment and make comments towards conservatives that are derogatory. is it really worth it to stand up to them? >> that is the beauty of an individual choice. i can't decide that for you. i know when i was in college sometimes i kept my mouth shut and sometimes i talked back. you just have to judge the teacher. but have you had teachers you think who gave you a lower grade because you had the wrong politics? well, that is too bad. i hope you stand up to them and i like it that you are wearing an austrian economics t-shirt. >> thank you. >> i'm lane garrett from right

here in tallahassee, florida. you write about drug legalization and for example pot. i can't think of any reason for that to be illegal. when you get into lsd you get into the neighborhood effects where you get into stuff people do that harms other people despite them not directly trying to harm them. my question is drug legalization sounds good and i understand people being allowed to about put what they want to into their own bodies but when it spills over into other people. >> let me he just break it down. pcp is a good example because people do crazy things on pcp. i wouldn't think lsd would be in that category. maybe cocaine. >> if they jump off a bridge and land on someone. >> libertarians would say you should be punished for what you do to others but you should be allowed to do anything that is peaceful. if you jump off the bridge and hurt somebody you should be punished. >> you are dead. >> but if you are dead you have

been punished. but you can't prevent all problems but how well is the law you working now? i mean when you were in high school and under age what was is easier to get, alcohol or weed? who says alcohol was easier to get? who says weed was is easier to get? so it it is illegal. it doesn't stop people from using it. but the crime you mentioned it is the law that causes the crime. no one is knocking over 7-elevens to get nicotine. it is just as addictive. but there are no marlboro gangs or budweiser car tells. it is the law that causes the crime and that is why i say it should be legal plus the fact that once you are an adult you ought to be able to own your body. >> in your book you say government cannot create jobs. if you borrow money and run up

a deficit won't that stablize the economy by creating more jobs than you created in the first place. >> i don't mean to say that government cannot create jobs. if government expectations money from taxpayers and pays people to dig holes and fill them up the government is creating jobs. the evidence is government isn't as good at spending money as private entrepreneurs are. when a private entrepreneur creates a job if it isn't productive he goes out of business. it has to produce more in income than he pays the person or the job goes away. that is not true for government. they can take money from the productive people and give it to the guy who built the turtle tunnel here in florida. >> i'm brian joseph from jacksonville, florida.

>> i want to know what you think about paul ryan's budget trying to attempt through congress. the attempt at reforming entitlements. >> i think it is good. he is making an effort so my generation doesn't force you to go bankrupt in the future. he wants to shrink government, gradually, slowly from the 22% of the economy it is now to 20%. he is being called a social darwinist and yet government was 18% of the economy under bill clinton. is bill clinton a social darwinist? i think we should shrink it back down to 3% but most people won't go along with that. but thank you. good last question and thank you for joining me here on the book tour. i'm going to 17 more cities talking about "no they can't why government fails but individuals succeed."

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