tv Stossel FOX News May 5, 2013 7:00pm-8:01pm PDT
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john: and they're off. south dakota an early lead. in which state our people freest? >> new hampshire is looking especially coveted. john: laboratories of democracy. states can battle over smoking weed. >> should the federal government telling you what to put in your body? >> no. >> this is what democracy looks like. john: whether you can be forced to join a union. the battle over how much money you must give to government. >> indiana and delaware are rocketing. john: which strangles freedom?
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rumble in the states. that's our show tonight. ♪ >> america has 50 states. that can be bad, confusing each has its own rules and taxes. but it's also good because it creates competition. when one state does something stupid people leave that state and take their talent and money with them. between 1995 and 20104, 43 million people moved from one state to another. which states were the winners and which were the losers? let's have travis brown who tracked the movement in his book "how money walks" and he created a clever way to see who is moving where and why. darcie also runs a bank number
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two state in terms of money and health. explain this cool new thing you created. >> thanks to the irs we can track everybody's income moved between the states over the last 15 years. we see big losses from states like new york. >> now you have new york my state and i see people are leaving for florida and lots to california even. but they are coming in from michigan at least. >> there's not the kind of in migration you want to see. but for a state like florida you are seeing a massive amount of people and income coming in. $86 billion. >> florida was the number one gainer. >> that's right. >> darcie you run the gold wauter institute think tank. arizona is the number two state. people come in from minnesota, my state, new york. you could say they go to arizona and florida just because it's warm they are moving for
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weather. >> you would be wrong. >> but they are moving for weather you are not totally wrong. >> the number one people move census bureau asks, to find a job. jobs correlate with taxes. those go hand in hand. climate makes up about 5 percent of people's decisions small quality of life factor. not the big factor everybody thinks it is. >> john we see that in data there are states without income tax doing well in this analysis. states like wyoming states like washington. they are all gaining people and income. >> so it's not just the weather. what are the highlights? what are the main things you learn? >> out of all 50 states there are nine that put a price of work at zero. that makes them very competitive to a basket of other states who have a high price of work. >> what does price of work mean? >> state income tax puts a price on work that's different between one state or another. >> you have this by nonincome tax states. >> it shows the big analysis for
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states like texas who gain $22 billion the last 15 years that those states like them gained 146 billion where those states lost 120 billion. >> the tax states, florida, arizona, texas, north carolina, nevada. the biggest losers new york, california, illinois, new jersey and ohio. taxes? really? >> there is what i call the magic formula. taxes on the one hand and good labor policy on the other. which means doing business being free to hire and fire the people you want. in an overlap in the most successful states you see both low income tax or no taxes coupled with right to work laws. hand in hand those laws will over time.
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few people do if you are really wealthy you think about that most americans think that is what you know goes hand in hand with these tax policies. that's why they are so critical for policy makers to get right. >> states seem to be doubling down on both good and bad policies? >> that's right. you have states like minnesota that have been talking about a snow bird tax raising marginal tax rates up here you have those kinds of states not doing as well. >> governor dayton says, these people are going to florida and arizona and in the winter, but they are minnesota people. we should get a little pedalling for that. i could see the thinking. if the disposable income was truly captive within your zip code, within your city, that might work, but what we know about career mobility today now more than ever is that people
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can and do move. they do pursue those jobs and where their income is most welcome. >> the states keep raising these taxes thinking they will get more money and they get less. they will never learn. that shouldn't be a surprise considering the past perform mabs of what 1 # 34 taxpayers say with this analysis. >> one state moving in the right direction is oklahoma. it hasn't gone well in the past but now it lowered taxes several times and presto people start to move to oklahoma. the speaker of the house there pw shannon pw oklahoma, i think of a dust bowl. why do people move to oklahoma? >> it is simple. in oklahoma we know if you want more of something you don't tax it, you tax it less. if you want less of something you tax it more. we are moving to reduce our state income tax rate it's at 5 and a quarter now.
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every time we have done it in the past we have seen increased revenue and we have seen growth. we try to keep momentum going in oklahoma. >> even the coolest mainstream media starts to get this. time magazine had a headline in the heartland, oklahoma, kansas, missourie is the yellow brick road. supply side is our laughers argument if you lower taxes people will come to you? >> when you look at what's happening and contrast us to what's happening in washington, d.c. it is pretty clear that if we are not going to be taking freedoms away from people we are trying to expand people in oklahoma. the way we can do that is to allow people to get their hard-working money. our fore fathers thought it would be competitive in oklahoma we want to win. >> you feel competition from kansas and missouri? >> when you have the 13th largest economy in the world
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south of you and texas you have to be competitive and always moving the needle. frankly it's like my friend for the speaker of the house we have to be about creating pockets of freedom around the country. if you look at how the government has continued on the intrusion on delivery it will be how the state makes the difference. if there is going to be reform it will happen in the 50 capitals around the state. >> oklahoma was losing people for a while. >> you see a change of fortune in the numbers based on oklahoma. if you could see that over time they were bottling out, losing people and income and about 2005 that reversed that's consistent with some of the tax cuts they were passing in oklahoma city at that time. >> i would also like to point out, john, that didn't happen until i got elected also. >> i love what the speaker is doing. he understands oklahoma does not have the beaches that florida and california have, they don't
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have the huge universities that maybe you have in places like boston and new york. a lot of the income ben see factors and other states they don't have. they know they can be competitive if they get labor and taxes right. they are going to do it and before you know it oklahoma will be in the top 5. >> travis, you say celebrities are a good leading indicator? >> they are entrepreneurs we see evidence from people like tiger woods and others that make the move all of the time. he moved from california to florida starting his career. nba players like lebron james and other players that end up moving to texas get the first announcement on their doorstep that think of what you can buy with the money you save. >> houston rockets have pamphlets that remind players how much roll locks patiented lees. >> in many cases these athletes have an opportunity to earn more after taxes regardless of whether they play another game
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or not. >> michael phelps doesn't live in maryland any more? >> that's right. tony roam mow is the best paid athlete after taxes, even though he might not have gross payee kwifl lent to others in the nfl. >> he lives in texas a no income tax state. >> being a resident of texas or lower tax state means real value. >> speaker, you have lowered taxes many times but why not go to zero? >> we had a proposal on the table to do that last year because of some of the lobbying efforts we weren't successful. >> wouldn't you have trouble running state government? >> you have to be able to keep a commitment to core government services. there are a lot of states around the country that have proefrn you can do it without a state income tax.
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if you want people to have your investment dollars in your state, capitol won't flow to a hostile environment. you have to keep it as open and free market as you can and in oklahoma we believe they are doing that. >> thank you for doing being with us. they focus on texas money, but there's more to freedom than that. we will cover that tonight. my next guest says one state is hot, cheap and right and it is not florida which topped travis' list. which state? that's next. new car!
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right? >> poo people moved for the weather it's totally insane. it's hotter than new york in the summer. low cost of living low taxes low spending it's right. the right heavily donated republicans maybe that's changing and right in the sense that things are working well in texas. >> unemployment is lower than the national average for years. chief executive magazine survey ceo's say it is the best state to do business in. >> it's the best state to do a lot in including business. a number of publications have thought that about the state. >> push back, paul writes texas miracle is a myth. texas has one of the worst poverty rates, highest high school dropout rates last for percentage of children with health insurance. >> poverty is a huge issue for the state and for the country. these are not new problems they have been that way we have been catching up for a long time and now critics in other states will
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be looking up and say you are not doing well yet. we are getting there. >> the bottom line is people are free to vote with their feet and a third of the people in texas were born some place else. >> 4 million people move or be added to texas in the nelast 10 years. >> mostly from california and illinois. you have gained 5 billion in wealth from people moving just from california. >> that's a number i just heard. i would have thought it was bigger. >> that's only the people who report it. there's probably lots of other money there. lots of people move from california and texas. texas governor perry was bragging about that. chicago's mayor az i hope he remembers all of thiz reasons. which is reference to this. >> three agencies the government that are gone commerce, education and the -- what's the third one there? i can't -- the third one i can't.
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sorry. oops. >> it was energy he couldn't remember. he could have gotten rid of the department of agriculture and interior and so on, too, but that's another story. rahm can make fun of perry. the facts are on perry's side. >> he can remember a list and create jobs. if i had to choose i would choose the jobs rather than the list. >> california's governor also sneers at your state. he denies that people run from california to texas. >> the government of california consists of what it is. you are not going to love it or whatever the places were that make up the state. who would want to spend their summers in 1310 -- 110 heat inside fossil fuelled air-conditioner. >> he has to say fossil fuel air-conditioner. many of them are not but lub buck and 110 degrees.
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>> we are the nation's leading wind power state and a lot of that wind power comes from lbu lubbock. he shows a defensive kind of crouch. >> they are in a defense i have crouch? >> sz is a lot of the country. they are such a recession nature restage but we are not getting back to where we want to be. if texas is doing that more effectively i am all for it. >> this program is critical of perry for corporate welfare. some companies got big to move there. samsung, t mobile. >> i think with texas the rhetoric is 33 market but it is from aing matic. you might describe it for protective business rather than idea logically free market
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tiering. a little bit of spending to try to attract companies to the region of the state hasn't gone on for a while. most states do that we do that also. >> my favorite part that really illustrates texas is different, if your legislature for this big state doesn't meet every year, every two years. >> every other year for 140 days. >> and pennsylvania for example which has half of the population has more legislators and they pay them 10 times as much. >> i guess pennsylvania has a really awesome government. maybe they are doing great things there all of the time. >> in texas they are paid only 7,000 bucks a year. >> i think one of the new guys just realized that. >> thank you erica greeter. coming up more rumbles in the state. two states legalize marijuana. will that earn the money from marijuana? >> that's a competition between all of the new product the and everything and there is going to be a winner.
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>> next, union power does that make states better for workers or worse? we will argue about that next. i do a lot of research on angie's list before i do any projects on my own. at angie's list, you'll find reviews written by people just like you. i love my contractor, and i am so thankful to angie's list for bringing us together. angie's list -- reviews you can trust. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm...
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>> i used to work for abc news before that wtbs. when i moved to new york for a job i was told i had to join a union after the ameri federation of tv and radio artists. i said i don't want to i am not an artist i don't want to pay dues. i had to i was told. new york is a forced union state. but half of the states are. that means if a majority of workers in your area vote to form a union everyone must pay the unions. i did for 36 years but no more now i am at fox which is nonunion. i think it's great there's a trend away from forced unionization.
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indiana, michigan recently passed right to work laws which say workers cannot be forced to pay union dues. they joined 24 states that had the law. great. no, that's terrible says david madlin says for america's biggest think tank. why am i wrong sfwh>> you are wrong for a couple of reasons. first you can never be forced to join a union. you can be required to pay union dues that cover the cost of for example representing you and bargaining for your contract. the bigger and more important reason is that unions make the middle class. they help make the middle class stronger and without unions you are under cutting the middle class. >> where is the evidence that the union makes the middle class stronger? henry ford doubled auto worker's wages and shortened the workday years before the uaw even existed? >> well, i think the best evidence you can look at the
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u.s. over time when they were at the strongest 50s, 60s, 70s middle class was the strongest. as unions declined in power the middle class has significantly weakened. >> we have a chart looking at unemployment in america and it gloez up and down. there was the lowest unemployment in the 20s before there were unions. >> unionization can be high when you have high unemployment and vice ser saw. the key thing to know here is what unions do is help give workers basic bargaining power in the relationship so workers can join together and negotiate with their boss on morrell tively equal footing. that gives them the ability to get a larger paychecks and things like benefits like healthcare and retirement. why do i think they do a bad job? why do they negotiate higher pay because i work harder than the
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other guys in my union and i have an incentive to work harder. >> well, if you don't like the union you can go to reject their contract vote to de certify the union that means get rid of the union. you can also work for a different employer. you have lots of choices. but when you work for an employer for example they have requirements. they often require you to wear particular uniform or they have to monitor your key strokes on a computer. when you work for an employer there are certain obligations that come with that. if you happen to work for a unionized employers one of the obligations is pay for the cost of representation. >> says the law in about half of the state but the employer may not want that the worker may not want it. what if the union negotiates stupid work rules. the union editors were saying it can't be done, you can't touch that tape machine. sometimes it took them five minutes to get out of the car to
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shoot something. it sucks the incentive out of people. >> unions like any other democratic association that people don't think are in the interest of them -- >> society. >> they give power to workers to negotiate on relatively equal footing that gets fairer relative bargaining. what our keconomy needs is workers to have spending power to spend on workers driving the economy. that's what is happening in recent year not as much purchases power. they are not raising enough money. >> unions raise wages for some people but others pay. >> toyota paid 48 bucks an hour. gm was paying 73 bucks. they lost 33,000 job. you help a few and you hurt
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more. >> unionization wages workers not just for members of the union but for broader class and others feel like they need to go more ob a level. studies estimate -- >> but bans are in effect. >> no, they don't. the highest unemployment in the country right now is a right to work state. third highest unemployment rate is also right to work. >> for the past ten years employment and right to work states increase by more than 5 percent in ub onstates it fell. >> in the best studies it compares right to work that actually controls other factors that are likely to lead to job growth right to work has no effect on unemployment. they found no effect on
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unemployment manufacturing opponent is speed to decrease after right to oklahoma right to work. there are larger global forces here and the reason temperatures choose to work at the state can they get goods and services add is there demand for a product. they help workers get better benefits. that's what we need in the economy. >> david, thank you. we agree to disagree. >> personal freedom. how do the states compare? that's next. with command strips from 3m. stick it to eliminate odors anywhere. like this trashcan. in like a flower field. aw man! [ screams ] [ laughs ] stick it almost anywhere. new febreze stick & refresh. breathe happy.
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city but new york has lots of restrictions on freedoms, forced unionization, rent control, strict gun laws, high taxes. some of that is just new york city but new york state isn'tsot either. freedom in the 50 states ranked new york dead last. this year they made a video about their contest. >> every two years all 50 states compete for the title of most free states. the winner will receive more residents, fewer burden dom some rules and fewer nanny state regulations. >> i wonder how new york will do? they don't look too good. >> an economist and will ruger wrote that story. new york was the worst. what was the best? >> north dakota was the best followed lie south dakota, tennessee, new hampshire with idaho right behind. >> in terms of personal freedom you have another ranking with
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alaska, nevada, main, new mexico new hampshire. you break it down by economics and personal freedom. >> in economics physical policy and we talk about freedom from incarceration arrests of victimless crimes gun control, education policy, marriage policy even travel freedoms. >> you are saying if they allow gay marriage that's good. you are making value judgments here. >> sure, freedom is a moral concept. we can study scientifically to see which states are more or less free. >> i don't see people wanting to move to south or north dakota that much. >> what is really interesting about this study is people follow jobs and jobs follow freedom. economic freedom regulatory freedom and personal freedom. there's a connection. it's there. >> some states have -- 18 states
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increase freedom since the last study. that's not what you see when you watch the politicians add piles of regulation. >> it's all relative. new york has seen a lot of migration -- we have seen a lot of migration out of new york. new york is growing but it is growing at one of the slowest, right, of all of the states. >> one is you compare the burden of regulation. let's play more of your video. >> wow. indiana and delaware are rocketing up the wall. what's virginia liability system and new jersey abusive property rights are leaving them stuck in molasses. >> i think california is going to fall. the labor laws and liability system is too much. >> liabor laws and liability don't eeb mention the crazy environmental laws that make power cost more. >> one of the things about
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california is what don't they regulate? everything from their liability system being problematic and authorizing rent control which only a few states do left joer from world war ii. >> when you compare it to states like indiana where they are relatively free yet it has land use planning is light, occupational licensing is minimal. they have a great liability system. we have seen regulatory policy contract with low income growth. it's a real benefit for state like indiana. >> what goes on in places like california? they have the coastline, the awesome weather. it's beautiful like you get comfortable and you get smug and the politicians get arrogant. you have this theory. >> all kinds of things are going on there. it's a complicated story. what is amazing given the advantages you listed people are still voting to get out of there. california is a wonderful place.
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hardly any place better than san diego in terms of the weather and all of the main its. you are seeing 4 percent escaping that state. other states like nevada. >> california is not a tough for immigrants. when you have a lot of regulations whatever forms they take it kills jobs and people don't want to go there. >> look at illinois and indiana right next door. illinois has one of the greatest cities of chick and people are fleeing. >> it's bad for personal predom and second panranks 36th. they have to make improvements in the personal freedom area. high constriction, incarceration rates and authorizes sobriety check rates.
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that's not so great. new hampshire. colorado, even georgia, missouri where those are the places i see as being distracteded with the future. this is a valuable that has start agnew in a new state. two states legalize weed. we wasn't to one where we are told everyone is happy. >> everybody is happy. >> i am happy. >> people bump into you, you are like hey, you come here. and you are like oh, sorry.
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some things won't last 25 years. ah! woof! some things will. ♪ >> two states legalized the use of marijuana not joous so-called medical marijuana for people who have a prescription. colorado and washington legalized it for any one 21 and older. travel guide predicts colorado and washington will get our tourists from other states. >> 3, 2, 1. >> a few weeks ago thousands of
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people gathered in denver celebrate colorado's new law by smoking weed. not kennedy, she went there to cover the event. >> should the federal government be telling you what to put in your body? >> no, not at all. >> i am not going to listen to what the government tells me to put in my body. i am going to smoke weed. >> the government has been telling us what we can put in our body. now we are making the decision. >> the federal government says no, its law takes precedence. >> obama administration raided more than 200 marijuana dispense res. politicians routinely admit they use the drug. >> which of you are ready to admit to having used marijuana in the past. >> yes. >> edwards? >> yes. >> i experimented with marijuana a couple times and didn't inhale. >> i inhaled frequently.
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that was the point. >> do you think he's a hypocrite? >> yes. >> obama you are a hypocrite. >> they sold all kinds of pair fan nail yaw. >> we are selling pins you put your own product in there heat it up enough to come bust it. it charges off your cell phone. >> high times magazine hosted the cannabis cup which gives an award to the most potent weed. >> there's a competition between all of the new products and everything. there is going to be a winner. >> there were lots of tourists were from out of state. >> i am from oklahoma so this is pretty cool. >> people smoked weed in front of the police. >> it is illegal to smoke we marijuana in public. this is clearly public. >> he said that but he's standing in front of people smoking in public. >> he explained the law was written by stoners not by lawyers. that was lieutenant murray's description of it.
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they didn't say you could smoke marijuana inside. everyone was celebrating. >> just as illegal. >> just as illegal as anybody. >> they leaf it up to individual judgment. he was saying you can jay walk, i could arrest you but i am probably not going to i have got bigger things to worry about. same thing with smoking weed. if you are smoking weed they are going to throw a little grace. >> it is legal to possess one wons of marijuana. >> didn't know it was that kind of show. >> this is not weed. that is just something that looks like it. they lit up at 4:20 p.m. big thing about 4:20 what's that about? >> no one knows. >> april 20th. >> 4-20 is stoner code. if someone says to you, do you 4 -- 20 what they are saying is
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do you put marijuana into your body and enjoy the wonderful euphoric feelings that follow. i don't know if you do it's not my business i am not really interested. on april 20th at 4:20 exactly they had the count down and that's when if you didn't get a contact high you were an alien with no breathing apparatus. >> people think it's the code in the california penal code for marijuana bust. in fact it's not. >> if that 420 refers to entry on public land all it is is california high school kids would agree to meet at 4:20 p.m. that's become this nationwide myth. >> they were all wearing marijuana clothing and glasses. >> the video shows all of these people being happy and people say marijuana is unlike alcohol doesn't make people angry. at that rally there was a shooting. >> yeah, we spent all day at that rally. when we went to the cannabis cup
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another rally. >> it is a contest they have there. what about the shooting we will talk about that. >> people were streaming out of the park because there's nothing worse that be when someone harshes your mellow with a shooting. it creates instant paranoia, people stormed out of the park and they are still looking for the suspect. >> it was some gang incident they say? >> by the way marijuana brings together many different people from all walks of life. you are talking about like 70-year-olds holding on to the grateful dead dream talking about 21-year-olds. i am assuming they were 21. they looked quite young. they are experimenting with it for the if i was time. people from all walks of life. no one else was violent. i have to say they were very, very happy for the most part. >> you braupt the h-- brought u hypocrisy argument.
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obama the other presidents say they smoke weed but they arrest people. president obama has continued to have raids in states where medical marijuana is legal, 200. plus they are still doing it. >> you have legal growers people -- >> the federal laws do take priority. >> obama said when he ran he wasn't going to use his justice for marijuana. he has busted so many in california if that's not hypocrisy i can't image what is. >> the cannabis cup? >> this is a nonmedical marijuana growing and consuming competition where people were able to try certain types of mare waub gnaw and th-- marijua and decide what tasted best and made them feel best. the winner was platinum girl
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scout cookies by private stock la. >> that's a name of some type of weed. and what strikes me about this legalization movement it illustrates how clueless they are. washington has appointed the pot czar. you de sited how about this come to market. mar vesting quality testing, pricing, don't they understand if you legalize things it happens. u.s. delivers 100 packages per minute. america just does this. >> you will see with this. i think the more marijuana is legalized it is going to be incredibly regulated. there's no facet of our lives that the government won't regulate. we are saying this might be quite an industry we can pass into. tax people and spend even more
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money. >> how many growers and stores will there be? >> if you let the market decide you will be saver and have better cuss mers. >> the politicians grow government. >> the third member team in washington. >> if you want to spread freedom there is one state that might let you do that next venlt let you do that. new car! hey! [squeals] ♪
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[ewh!] [baby crying] the great thing about subaru is you don't have to put up with that new car smell for long. introducing the versatile, all-new subaru forester. love. it's what makes a subaru, a subaru. the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪
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john: in. >> the founder says this of our constitution. ben franklin said i agree to this constitution because i think a general government necessary. he went on to say, this is likely to end in despotism and other forms have done before it. >> most governments go back. freedom is not the natural state of things. so three cheers for state competition. maybe a rumble between the states will preserve liberty limit the awed kratz power to take our freedom. we can move to other states. one group of liberty loving people decided the west way to decrease liberty is mo move to a small state and allow other
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freedom lovers to move to that state, too and prevent big governments from dominating their lives. which state? it would need to be small so 20,000 votes would really make a difference. they held a vote and new hampshire won. new hampshire already has lax gun laws no sales tax and the freedom to ride a motorcycle without a helmet. so far about 14,000 people have agreed to move. a thousand have moved already. they are not the 20,000 but they are gaining new members a week. they call themselves the free state project. new hampshire is no libertarian paradise. it is not a right to work state zoning laws in some areas raise the price of housing and the freedom ranking new hampshire fell from second place to fourth place. more than a dozen have been elected to the state legislature a few practice civil
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disobedience. when they sold a free state to get the couch off his lawn he named it freedom couch and remove -- refused to remove it. mother jones reports others have been sited for violating open container laws during a city council meeting or indecent exposure and firearms possession at the time. this video shows a bunch of them smoking marijuana inside a police station. police didn't arrest anybody. the free state project is having a get together next month called pork fest not because of the pork of big government but because a libertarian mascot is the porcupine. which sends a message, leave me alone. i mind my own business, i won't bother you. if you intrude on me i have spikes. it's a good motto. i wish all politicians saw people as individuals with prickly quills who want to be left line.
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that's our show. i am john sfos el. s -- i am john stossel. see you next week. ththththththte starts right now. >> tonight on huckabee. >> shocking undercover video of abortion clinic workers describing what would happen if a baby is born alive after a fame would abortion. >> we do not resussitate. blowing the lid off the late-term abortion industry. >> you think it breathing or like that? >> it would die. >> and whistle-blowers prepare to testify on what the government knew about the bengazi attacks, senator lindsay graham wants answers and demands that the administration give up the namings of
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