the ultimate sleep number week. only at one of our 425 sleep number stores nationwide. sleep mber. comfort indivialized. if you wake up we will see you tomorrow. ♪ john: it is the season of giving. so where should you give? should you give this man money? what about this man? >> thank you. john: actually, that's me. don't give money to beggars like me. governments must spend more. >> medicare, medicaid, social security. john: this government really helps the poor. >> everybody in cleveland. >> by any measurement this is not working. john: i am glad more people figure that out. >> commerce, entrepreneurial capitalism takes more people out of poverty. john: even some in the mainstream media.

>> if you're waiting for the government you're going to be in for an awful long way. john: if they get it may be seen more people will realize there are better ways to give. real charity. that is our show tonight. ♪ >> and now. ♪ john: what is real charity? people are in trouble after a disaster or simply when people are poor. americans instead is to think amount and government help. after all, who will help those people is not government? libertarians argue that private charity would step in. individuals really choosing to help. but with enough of us up? most people say no. that is why liberals like newsday columnist say when it comes to helping the need, that is mostly government's job.

>> well, listen, it would be great if people of reach into their hearts and solved all these will problems. that does not happen. in almost every single case where they're is a government program that exists because the private efforts. when you have 04 enough. john: that is because politicians said they were not enough and we could do better. i would argue that a government did not takes a much of our money the private sector would take care of these problems. >> hold o look at older americans. the used to be the poorest sector of our society then something called social security came along and medicare came along, and now all the people do relatively well. before food stamps we had kids spread all across america. those numbers were cut dramatically by that despite all the generous churches and the ones who approached you on the street and gave you a nickel. >> but these programs are trillions in debt. they're unsustainable. >> maybe we have to tweak them. but you can't throw away the

idea, the reality that we need government in there, too. >> food stamps, a couple billionaires could fund that whole food stamp programs by themselves and a private chair which would be better at saying who really needs the food help and who's scamming the system. >> i would love that. if you know a billionaire who wants to pay the entire system i would welcome that. >> the don't step in because your big fat government is there. people say oh, government does that. >> here's i think the reality in real life is that all these private efforts are really important. we're very generous people. we give a lot of money. but when the chips are really down, when the big thing happens, when the typhoon hits the philippines, we loft red cross effort. but you know what? the don't have an aircraft carrier with marines on board and rescue helicopters, the u.s. military does. i want them steaming toward the philippines when the typhoon hits. >> i don't know what's going to happen in the philippines. in haiti our government promised

billions of dollars. it hasn't gotten to the people in haiti. the "new york times" said the were going to build 15,000 homes. latest target fewer than 3,000. >> if your argument is that sometimes government doesn't do a perfect job. >> usually always. >> sometimes the do an awful job. >> i wanted to play a clip i showed earlier two of my left wing colleagues were talk about how after the disaster faith-based charities were better at disaster relief than fema. >> there's fema and then there's the faith-based fema. >> if you're waiting for the government, you're going to be in for an awful long wait. >> so this is harry smith and brian williams talking about the government response after the tornado in moore, oklahoma in may. and how 30 churches banded together and helped much more quickly and did a better job than government. this happened in katrina, too. fema was turning away walmart's free water while people were trying to get water. and fema was sending its water to the wrong place. >> you're right. listen, as you know i'm a native of new orleans so i feel that one kind of personally.

and you're risoght. things the s do well. there are all those kids, wonderful young people who came down and church groups. the did some things much better than government. but there was still an awful lot of things that we needed government for. remember how angry folks were when fema was slow to get there? no one said stay away, the said get here quicker. >> and walmart and private charities got there. >> so maybe one of the things that the privates can do is be a little more nimble, a little quicker. but boy if you're talking about rebuilding the gulf south in america, i don't think you want the government to take a pass. >> i do. let's talk about the war on poverty. lyndon johnson said he would end poverty. so here's where the war began in america is the poverty rate. and sure enough, dropped sharply the first five, seven years after that. but then it stopped improving. we taught people government programs teach people to be dependent. and look what was happening

before the war on poverty. americans were lifting themselves out of poverty. government continued the progress for five years and then stopped it. >> we should have been more jenn errouse with these programs. we should have don't other things that government can do to help folks. >> oh, gosh. government doesn't teach dependency? >> no. listen. i am not here saying government is perfect. government has some bad things. it's clumsy. bureaucratic. has waste and corruption in it. i'm just saying there are things it does really well and the privates do really well. the test is hey, private folks, step up. >> i think these graphs are the test. can we put these up? the rise of food stamp use in america. you would say this is because more people are hungry, the recession. but it goes up steadily. the two lines refer to -- one is the number of people collecting and the other's the cost. we're teaching people to be passive. >> i grant you that's something we want to avoid.

so what's the solution? shall we look at those hungry people and say we're going to take your food stamps away and hope for the best? hope the food pantry down the block -- >> limit these programs and let the private sector step in one more example is the rise of disability payments to people. straight up. so you got fewer people doing manual labor, medicine is better, and more people are disabled? >> i got to tell you, i'm with you on that one. >> you want to get rid of it? i'll play your own question. >> i don't want to get rid of it. i think we could certainly look a lot more closely at some of those applications. >> cut it way back. there's a place near here called a job center. >> okay. >> government office supposedly to help people find jobs. >> okay. >> i went there. people said, there are no jobs. i've looked for jobs. i have to get my welfare here. we even went around, and within a couple hours found 40 job offers. 28 entry-level positions. one restaurant owner said i'd hire a dozen people if people

would just apply. >> how many could come with no experience? >> i probably would take like nine. probably take nine and train them. >> and at the welfare office, people told us there are no jobs. >> no. there's plenty of jobs. >> these government jobs offices encourage people to take welfare. i had somebody go and ask for help, see if they'd help her get a job and the said no, the just steered me toward welfare and food stamps. >> listen, again, it's much smarter to have programs than courage people to work, that don't reward laziness, that are effective -- >> the all do that. >> oh, i don't know. >> private charities know who needs a push and who needs help. >> the answer can't be to just cut it back, can it? >> yeah, i think cut it back and invite the private sector in. we'll stop there. thank you. i say private charities should replace government in this rich country, but what about the rest of the world? people assume global poverty is a problem that has to be

addressed by governments, giving out foreign aid, or maybe the u.n. and the u.n. contradicts the title of my book by saying, yes, we governments working together can end poverty in just two years. while. >> wow, two years. of course, 50 years ago lyndon johnson claimed his war on poverty would end poverty in america. the u.n. will do better? ted turner gave them $1 billion for this. and individual governments have squandered nearly $1 trillion in foreign aid trying to lift people out of poverty in africa. and i say squandered because after the spent the 1 trillion per capita income in africa went down. this may be because the foreign aid encourages dependency and because african kleptocrat governments steal much of the

money. what's the alternative? michael faye says he has an answer. what's yours? >> we're going straight to the poor, cash transfers from you directly to them. no middle man, no leakage, no end costs. >> so you have a charity, and you've raised about $6 million and just given 20 some thousand people cash, about $1,000 each? >> that's exactly right. 1,000 for the household. >> this to me sounds like a stupid idea. they'll just spend it and the won't have any. >> you're not the only one. people think we're crazy. truth is there's been a decade of research that shows the opposite. what are these people missing? a lot of them are mission the capital. we have the old expression teach a man to fish. the truth is in a lot of these place places the don't have fishing poles. >> so you allow them to buy a fishing pole, or in this case this may have been a guy who got a motorcycle and he uses it for a taxi service. >> yep. this is a used motorcycle that

he bought with cash and now provides taxi services. >> and you give the people a cell phone with the money why is that? >> because that's the way we transfer the money. it's phone to phone. if the don't have a phone the may not be able to get the money. >> and then it's easier to check up on them and see what the do. >> we check, call them, talk to them regularly. >> and people build metal roofs. >> metal roofs. >> one of the most popular things. one of the most popular. no charity that's doing it. the poor decided to do it. saves income, clean water, less malaria, et cetera. we didn't think of it, the did. >> and before the had the metal roof the had a thachd roof and they spent -- >> it burns down, falls, the spent about $100 a year replacing these things. >> instead the can start a business. another person cad received training from another person to be a welder. >> yep. and he was sitting there nothing. sitting doing nothing because he didn't have welding equipment.

now he does. >> what makes you think this works? >> oh, we don't need to think. we've got a decade of evidence. we've done our own third party evaluation of our program. we know income goes up, stress levels go down, hunger falls and the list goes on. >> you do another odd thing for a charity. none of your charity board members works full time for your charity why is that? >> here's the great thing. if it's not working, john, i wouldn't need to lie to you right now to keep my job. >> that you could be more honest evaluating it when it's not your full time job. >> exactly right. >> some theirities delude themselves? >> i think people have passion. often passion blinds evidence. >> well, i still have a hard time accepting that this can -- i just criticized government programs because the don't teach people to take care of themselves. i guess giving cash once and knowing it won't keep coming is different. >> that's right. it's a one-time transformative. it doesn't matter who does it. it matters what the do.

why buy a cow when the person is too old and too sick to take care of the cow? let them make the choice. we shouldn't be making the choice for them. >> i hope it works. i'm glad a lot of these experiments are going on. thank you, michael. if you'd like to keep this conversation going please go to facebook or twitter and use that #realcharity. let people know what you think. coming up, president obama says the way to help people people is to give them a free cell phone. ♪ >> a phone is a lifeline that no one should have to live without. >> authorized by u.s. government. the day we rescued riley, was a truly amazing day. without angie's list, i don't know if we could have found all the services we needed for our riley. from contractors and doctors to dog sitters and landscapers. you can find it all on angie's list. join today.

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♪ >> the government will pay for you to have a free cell phone with monthly minutes. no credit check and no deposit required. >> yip pea, a free cell phone. 250 free minutes. what a deal. this is to help poor people who need a lifeline. that's reasonable. make calls in an emergency. this is a government program that began when ronald reagan was president. president obama expanded it, of course, and bingo, in just four years the cost tripled. and it will continue to rise because people love their obama

phones. >> you got obama phones? >> yes. everybody in cleveland that's a minority got obama phones. keep obama in president. he gave us a phone. >> how did he give you a phone? >> you sign up. you got low income, your disability. >> the more free stuff you get, the more you're eligible to get. but eligible. that assumes someone actually checks to see if you're really needy. do the even do that? jillian kay melcher, a reporter for the national review, was curious. so what did you do? >> i went to all the welfare offices in manhattan and a couple in brooklyn for good measure. and i found out that there are people out there approaching you on the street saying hey do you have your free phone yet? >> outside the office. >> outside the office. >> private entrepreneurs. >> that's right. and i'm not on welfare. i told them that. i told them that i'd like to be on welfare. i think a lot of the people who pay for it would like to be. but that was enough. the ended up giving me not just

one, three free phones. >> three. the good news is that some places turned you down. >> yeah. the ended up -- well first off you're not supposeded to have duplicate phones which i've already broken that rule. but they're also supposed to check eligibility. i'm not eligible. and the also didn't catch except for one time i had multiple applications in and had tried to work my way through the system again and again. >> and an fcc audit checked this out. the found 41% of the recipients never demonstrated that they were eligible. >> i think that's about 6 million people. what you see here the phone companies have a very perverse incentive to push as many phones out on the streets as the can. the get $9.25 per customer per month for this program. the street vendors -- >> it's paid for which should explain out of your phone bill if you bother to read the fine print there's something called a universal service charge. this was under ronald reagan. make sure everybody had a phone

line, universal service. so a buck or two out of everybody's phone bill -- >> goes to fund this program. and i think that most taxpayerers don't know it. before i had gone out and investigated this i didn't know what that fee was at the bottom of my phone bill. >> you don't want poor people to talk to their families? >> the phone companies are the bad guys in this. this is a huge business for them. trac phone owned by the mexican billionaire, one of the richest people in the world. >> he may be the richest in the world. >> he and bill gates compete. he got in 2011 alone half a billion dollars from this program. so i think you see what turned out to be welfare for the poor, it's actually corporate welfare plain and simple. >> and what about my obnoxious question? you don't want to help the poor talk to their family? >> you know, i think maybe there would be justification for a land line. and that's what the program started out as. but i think anytime that you've got perverse incentives for a can be to go hand out phones, combined with a very poor

oversight, you've got to ask yourself are you creating a situation in which fraud and abuse can just compound? and that's exactly what we have here. >> and it shouldn't surprise anyone, government charity is susceptible to fraud. the contractors doing the work know, it's government's money. it's no one's money. and the more the give out the more they get to keep. they get a commission on each give wayaway. cell phone charity is small, 2 billion. think about the hundreds of billions spent on medicare, medicaid. much more fraud there. people who run medical clip nix florida were caught with all this stuff. one man alone spent $20 million on this diamond jewelry, also horses, a fleet of luxury cars, one after the other. all of which he got because government paid millions for medical treatment that never happened. and government help is just extra susceptible to abuse. >> and that's definitely what i found. i was surprised that i was able to get three of them in

violation of pretty much every program rule. and if i can do it, being somebody who tells the truth and who's not looking to defraud the government, just imagine the people that are actually looking to abuse the program how great the opportunity is. >> and private companies get ripped off, too. but they have more of an incentive to check. it's their own money. >> yeah, that's right. georgia's actually doing some reforms within the states to try to see if the can mess with that fundamental flawed incentive structure. they're going to start charging $5 for consumers for an obama phone that the have to pay $5 for it they're less likely to go out and buy -- or get about three or four obama phones that the don't need. >> thank you, jillian. coming up, better ways to help people. people. ♪ target is in sight. yes, dad, i see him. now pour some chloroform into a white rag and....

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one of the richest people in the world is warren buffett. he until recently gave very little to charity. he used his money to try to make more money. he said he'd give it away when he died. his fellow billionaire ted turner told me buffet was being cheap. turner had just made a big splash by giving $1 billion to the u.n. and now he said he wanteded to shame other rich people into giving more. >> what he said is patently stupid. >> that was businessman t.j. rogers' answer to turner's bragging about his u.n. gift. >> what he should do is take his money and invest it and he can't help people any other better way than to invest it and to have the companies and buildings and plants that are created with this investment create jobs and wealth and products for other people. >> really? is it better if a moneymaker uses his money to make more rather than give to charity? i think so. and i threw that question back to ted turner.

>> if bill gates says, look, i'm good at making money. >> that's ridiculous. >> i tried to argue this with ted turner but he wasn't buying it. >> am i wrong in thinking that i'm happy if bill gates gives nothing to charity? >> wouldn't you be happier if he did? what are you beating on me about? this is why people don't like newsmen. i'm a news man, too. i know your dirty tricks. there's nothing more to say. goodbye. >> i'm walking off my set. >> since he didn't want to talk about it, let's take that same question to economist ben powell. he runs the free market institute at texas tech. so ben? >> i'm not bothered if the don't give more of it away. the make their money by making our lives better. so they are helping people by making a profit. and often that's the best way the can go about helping people. >> and when the make a profit and the hire people, those jobs live on for years and people use it to educate their kids and feed their family.

there's a multiplier. these guys may not even be good at charity. we know they're good at making money. i think the should stick to what their specialty is. >> it's not about their motives, jop, it's about the results from it. when they're pursuing profits in the marketplace is benefits others. real reason is decree eight products and services that make our lives better. as a byproduct the create jobs that make other people better off. this is often the best way the can go about making society better. it's what's fundamentally responsible for the high standard of living we enjoy in this country. >> and yet most of them i would say don't feel good about all the wealth they create in their business, and they guiltily give back. even bill gates working full time on charity, done so much to make our lives better with his company and his charity, he says he thinks most charity has to come from government. >> a lot of the money that is supporting these causes is

coming from the private sector, from people like you and less from governments. >> no. governments are the backbone of this. >> no, no, no. bill gates has it all wrong. he's gcomputers, he's not good at social policy. just last week i had a research paper presented in my seminar series here about the great chicago fire of 1871 and what happened afterwards, there was no fema to rush in and botch thing. it was civil society and private organizations that band together and help get people out of danger into new homes. it worked better than fema ordering people where the can and can't go and botching the whole process. >> a recent edition of forbes magazine, their richest people list, features big philanthropy. so they're now rating billionaires by how much the give. and kind of warm my heart. it's great. let's have a competition among absurdly rich people on helping

others rather than just buying jets and yachts. >> there's certainly nothing wrong with people giving money to causes that the think are valuable. not every good or service is going to be produced for profit. some of it can come this segment of society. i think it's fine that we recognize that as long as we don't demonize those who aren't doing it and think that there's something wrong with them pursuing their profits because there's not. that ultimately makes us better off, too. >> there are these tycoons from previous years, like cornelius vanderbilt and john d. rockefeller and people vilify them as robber barons and say well, the did some charity work but they were evil robbers. >> no. the fundamentally transformed the lives of americans in the 19th century and raised all of our living standards. rockefeller brought us oil and made profits in doing it. by the way, he probably also is probably for saving the whales because he pushed down the price of oil so much it was no longer profitable to hunt whales to extinction. henry ford comes in and builds automobiles a little bit later and makes them cheaper for

people. it didn't matter that his prottipro motives was profits. he made automobiles affordable for average americans who couldn't do that before. the same was true with most of the so-called rob bettber baron the 19th creentury. >> if i put on a fake beard and beg on the street will people give me money? . xipl

hi hi ♪(whistling tune) ♪("don't worry be happy") ♪ john: it will come to an end. the sooner the better the billions we spend on foreign aid. much of which is squandered or stolen. i agree with ron paul and his son, the senator. we should stop almost all foreign aid. the one libertarians say that people need angry.

>> cut off american assistance to these democratic efforts. pull the eight out. what the heck. less than 1 percent of the entire budget of the united states of america. john: it's pretty close to 1%. $35 million. i say we can't afford that. gregory adams runs of sam's 80 effectively says we should spend more. a giant charity it tries to fight poverty over the world. i say, fine. if you want to do that, you raise the money he believes government out of it. >> the issue is that there are some things that charities just can't do. despite the impact that they have around the world, and we are proud of the work that we do with money raised from average americans, there is only so much that we can do with our own projects. some places government needs to step in. john: all right. government needs to make sure aids workers and of being murdered on the way to where they're going.

and i should say that you don't take government money from the united states. to other countries. but you call for government to spend more on foreign aid. why when so much has been squandered? >> it is important to know that we're calling for more of the right kind of a. john: this is going to be the right kind. >> there are some things that we think the united states government is doing that we think is not a good use of money. particular, food aid is in desperate need of reform. we miss about half of the value of every dollar that we spend because we require it to be shipped in american vessels, delivering food rather than buying food at the source. john: you also wanted to spend more. >> we want more of the right kind. there are good programs, the millennium celebration that invest in success. the best performing countries rather than subsidizing failure. we want to see more aid given

directly to helping small farmers grow more of their own food and you want to see more aid used to support the anti-corruption efforts. john: but what are the odds that that will happen? that the aids support the corrupt dictators as much as half the food aid center at the molly is diverted to corrupt ccntractors, is like militants, local un staff. >> somalia is a difficult environment. john: i will go on. zimbabwean authorities confiscated truck filled with american food aid for school kids and handed it out to supporters of president robert mcgowan boy and a political rally. >> this is one of the problems when the only tool you have is bags of food. john: but by calling for more government aid you are calling for more of the aid that despite all the promises of reform has ended up in the hands of corrupt dictators.

>> we are not just calling for more government aid. john: i understand that, and you do some brave work. why do you call for it at all? >> a lot of misconceptions. one of the biggest is that most u.s. assistance actually goes to governments. in fact, that is not true. most goes to u.s. based charities, ngos, contractors. john: and the u.n. >> there is portion that goes. we are very clear that they are not the solution. people on the solution to poverty. john: let's hear from an african entrepreneur. a business and american. but she tried operating a business in her own company -- country of senegal. you agree. >> the combination. foreign aid. government. >> i have a very hard time. the african union itself is admitting it is being siphoned through corruption.

john: the swiss bank account. >> swiss bank accounts, real estates in the south of france, the son of the dictator of a equatorial guinea. he was busted by french customs. his plan was intercepted, and they found in the plane 27 fancy cars. i don't know how many furry some bentleys, rolls-royces. john: the only way to stop that is said keep government out of it. you can get a bunch of people who want to give their own money they won't give it to dictators. >> well, not of governments of the same. we actually work with a lot of anti-corruption and human rights activists in countries around the world who are actually working to try to get their governments to govern more accountable. they're interested in u.s. standing with them in joining this fight. too often we take such an approach to u.s. assistance, we try to make it -- we focus on much and a boarding corruption these activists in telling us that they want to us stand

together to fight corruption which means that we need to be their standing with them in solidarity working together. john: why the need government aid? why the need government aid? >> government said the only tool that can work to solve some of these accountability problems. it is like asking why the bears need an offensive line. at some point you need these other tools. it will be entrepreneurs who solve the problem of african poverty. but you also need government to do other things. john: you need governments. >> unfortunately at least in most countries in africa government has been the problem. they basically say, as an entrepreneur government does nothing but slow me down on a regular basis. officials bribing me all along. the fact that my truck is parked on a regular basis. and i have to pay a single time in the delays.

john: government aid will help fight the corruption. >> i'm sorry. the more you're feeding this huge government the more you choke me from the other end. that is at least the phenomenon that i am awareness of. and the more you give to them the more that is what happens to me. john: we do think that there is role that government can play. in a lot of the places we actually find there is a government deficit. people have to deal with -- john: why do you believe government aid would provide that? has not so far. >> that is actually not true to a lot of success stories. a lot of african countries that the scene. john: to racine them. thank you. coming up, why our man came up to me on the street and said are you john stossel?

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♪ john: someone once came up to me on the street in new york and

said, are you john stossel? has said the spd said to my hope you guys in. so what is this hatred about? it turned out he was what people call and anti-poverty lawyer and did things like sue landlords to stop them from evicting people. in his world here in new york capitalism is the enemy, and the only thing that keeps poorople y impressed his government. so because i call for less government and evil. this town, we libertarians are selfish people. and a good guy is called a bleeding heart liberal. so what is this website about? bleeding heart libertarians. talks about social justice and free-market. georgetown university philosophy professor regularly contributes to the site. why? >> the idea is to recapture the

soul of libertarianism. what they can and should do is embrace the concept of social justice. john: what does the phrase even mean? i am for social justice. >> right. john: for a lot of people it does not mean anything. it just means socialism. there is a real meaning. course of institutions that you expect other people to live by. john: laws, property rights, family rules come anything like that, one of the tests of those institutions should be that you expect when people live and abide by them attend to produce good consequences for everybody. you can show whether you care about this by asking a question like this. imagine that marxists were right. imagine there were a disaster, they left the overall majority of people destitute. would you still advocate markets?

i think most libertarians would say i would at least have some reservations. the fact that they work matters in the justification. if you think that the new advocate whether you know not what philosophers are calling the social justice. john: i'm rand said that do not consider charity a major virtue. selfish. >> what she means is not what most people mean. even if she thinks that i don't think she speaks for most people most are humane, they give to charity, the care that markets work and their work for everybody. the minimum wage, if you did not think that matter why would you argue that because on one. you don't beat you say that the minimum wage causes unemployment among the most laura will people in society and that is part of the reason to oppose it which means that you care of the consequences for the poor. john: the website, bleeding heart libertarian, categories like advocating nurses caring versus helping.

>> this explains what is going on with people when they think that libertarians are selfish. if you are on the lefty probably believe that your policies are the only sensible expression of benevolence. you probably think they must disagree with your values and only care of their pocketbooks. that is never really make sense because we have real arguments but also advocacy is cheap. i advocate that we have a 90% marginal tax rate, income over 100,000, if i advocate that it does not cost me anything. if i give money to charity -- john: governments should have a bigger anti-poverty program. >> that costs you nothing but you get the warm glow of altruism when you say you advocate that. put your money where your mouth is. does it actually does something. i know your concern. if you're advocating taking income from other people or yourself and that is all you do your not really showing me that you care. john: it is easy to be generous

with other people's money. that is what politicians do. >> that's right. john: thank you. coming up, my take on real charity. ♪ huh, fifteen minutes

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♪ john: i used to be pretty cheap. my mom told me, if you don't save your money you will freeze

in the dark. so i saved. but when my career took off and i started getting paid money to make speeches i decided to donate the money to charity, and it changed my life. i realize that i like giving money away. it makes me happy. research on what makes people happy backs that up. on average people who give to charity, whether they give them money or just time, they are happier. so death. it is did for us and get for them. though that depends whom you give to. i put on a fake beard and tried begging in new york city. people gave me money. they gave me money when my cardboard sign said thomas and cold, and even gave when i chased it to needed bier. thank you. thank you. john: when they asked givers why they gave people said things like this. >> he looks pretty neat, i

suppose. john: i just beg for an hour, but i did well. but did this for an eight hour day and would have made $90 a 23,000 year. tax-free. that is the reason social workers say not to give to beggars. often it is a scam plan very often you are an enabling. by giving cash to subsidize the biggest drug or alcohol habit. by not giving you may encourage them to give real help. a few respectable charities illicit on the streets. but most were begging or running scams. >> i need your help. i am homeless. john: new york attorney general said this pitch from a group calling itself united homeless is a scam. its director keeps nearly all the money comes bins it on things like his weight watcher bills. i hear you keep most of the money. >> we are homeless people.

john: the pages it is going to shelters. >> am i supposed to run a nonprofit and not get money? >> all the people donate absolutely know where the money goes. john: it is hard to find out where your charity money really goes. we can check charity rating services like charity navigator. it is better than nothing. the ratings are not perfect. some charities are not perfect, and rating services sometimes did coned. i give my charity money to groups that i can check out myself, a group that rehabs ex-con and attics. i decided they do a good job because i could see these men. they call them men in blue, ready, willing, able. the clean-air bill york city streets. what is hot is that they do is bring in a step in look cheerful and work fast. i thought whoever is working with these guys has done something right, taught them to take pride in work.

i give them money in a couple of other groups that back and watch. while i give to what i think are good charities, we should not forget about the people of, capitalists, on this once. but job creators do much more good for the world that politicians. and more even than that do-gooders' working for charity. i am delighted that the singer bought of figure that out after spending years calling for government to spend more in foreign-aid flop. now he says the best hope for the four is free markets. >> preaching capital. >> sometimes i hear myself, and i just cannot believe it. commerce is real. just a stopgap. >> commerce and on to panera capitalism takes more people out of poverty. we know that. john: politicians don't know that. many americans don't know it. it is time that they learned.

entrepreneurial capitalism takes more people out of poverty and a never well. that is our show. see you next week. ♪ >> i'm chris wallace. breaking news the u.s. and its allies reach a nuclear deal with iran. >> for the first time in nearly a decade we have halted the progress of the iranian nuclear program. >> the world powers have recognized iran's nuclear rights. >> what do israel and skeptics in congress think of the agreement? we'll get first reaction from two key members of the senate foreign relations committee, bob corker and ben cardin. then, washington gridlock intensifies with a power grab in the united states senate as republicans accuse democrats of trying to divert attention