this was the year of -- >> obamacare. >> i apologize. >> and that other terrible thing. >> government shutdown. >> could put the baby panda at risk. >> i did not notice anything. >> spending and debt kept going up. and poor people felt the most pain. >> detroit is broke. bankrupt. >> and our government spied on us and lied about it. >> nobody's listening to your telephone calls. >> and many politicians are eager to go to war. >> this is not the time to be silent spectators. >> the left was eager to pass more gun control. >> newtown. >> columbine. >> moved to centralize education. >> what we really need are clear

goals with the same rules, everybody can compete on the same staircase. >> they passed a billion new rules. >> that is what you see here, just the federal part. that's right. if you wanted to get state, county and city laws, you need to rent a bigger building. america conceived as a sea of libtd. we are a sea of government power with ever shrinking islands of liberty. >> but the good news is that this year brought more calls for liberty. >> why are they in my kitchen, looking through my books? >> even a filibuster for it. >> i will not sit quietly and let him shred the constitution. >> this tv channel got a new show about liberty. >> this is "the independents." >> the good, the bad, the ugly of 2013. that's our show tonight. and now, john stossel.

>> was 2013 a good year for freedom? tonight our all-star panel tackles that question. david bose, sabrina schafer, and nick gillespie. so, the big story now is obamacare. the affordable care act. many people really believed it would cover more people with more insurance and still be affordable. cheaper. i mean, how could that be? magically more stuff for less. now some of the truth has come out. prices are up. some people lost coverage. the cado institute predicted that so -- >> that's right. >> are you happy? >> yes, we are happy to have been proved right. look. everybody knows you can't have the government at least they should know, you can't have government central planning create more things for more people and have it cost less. we could have more stuff for less money if we made people consumers of their own health care an they had some skin in

the game, if they had their own -- if they were paying out of pocket for these things but we are moving away from that. of course it's more expensive and what's happened so fa-- >> people say the private insurance companies make a profit and by government mandate the profit isn't too much and organize things better that's cheaper for all. >> profit is not where the payment is going. you're covering the whole process and people are not personally invested in what they're buying, so they don't actually care how much the hospital room costs and how much -- which happens with all insurance. >> it goes up. >> which happens -- certainly with all health insurance, it means that there's no incentive to keep costs down and then this. >> my biggest concern of obamacare is as bad and disastrous as the rollout of the website is, this is probably as good as obamacare gets looking

at social security or medicare. those programs were relatively efficient in doing stuff early on. now 50, 70, 80 years later, we see bankrupt and bankrupting the rest of the country. enjoy it now because it's not getting better. >> i think the sort of silver lining to obamacare is more and more americans are understanding now that until they own and control those health care dollars we won't have efficiency in health care, better care or transparency. >> many celebrities campaigned for obamacare and promoted the administration's get covered campai campaign. one actress went topless to encourage people to sign up. some made videos. here's one with olivia wild. >> can't limit the insurance caps. >> obama cans care. >> to give you money to pay for it. >> obamacare. >> yippee. celebrities don't realize they're asking their young fans to sign up to pay for geezers like me? >> so easy to fall for this snapshot view of the world. if people don't have health care, give them health care.

who can do that? the government because they have all the money in the world. >> i think the disastrous rollout of obamacare woken up a lot of younger people to understand that obamacare is just one more case of generational theft that's going on where it is people like obama who's on the wrong side of 50. and it's like medicare, it's like social security. these are systems that were put into place for good reasons but are screwing young people. poor, young people and their future. >> to pay for me. i appreciate what you guys are doing. >> i hope you enjoy -- spend it wisely. >> let's move on to government spending. this year we had another partial government shutdown and the media suggested america might not survive. >> government shutdown will slash the operation and could put the baby panda at risk. >> it is pathetic. it's not responsible. >> notary publancy pelosi said is cut to the bones. >> we can't. >> the coverage is there. there's no more cuts to make.

>> the cupboard is bare? >> we get this debate of what should we cut and detracts from the larger picture. that's not what's dragging us down. it's ten titlement spending and research we conducted is wide appeal for entitlement spending and restraint. spend the same as last year and if they thought about it in those terms they would have a policy and political win. >> inflation goes up, not raising the social security payment? >> well, i think there is going to be some realistic -- >> old people scream. >> but i think people want to see that the entitlements have means testing and people investing more in 401(k)s and elsewhere, we don't need that reliance on the -- heavily run government entitlement programs. >> this is social security not a retirement plan. it is a rip-off taking money from relatively young, poor people. >> what do you mean it's a rip-off? i paid into that system all my

life. >> yeah, well, then you didn't get a payout that's tied to what you've put in. it's so bad that people are starting to wake up to it. >> i hope they're waking up to it. i talk to people on the streets, some do say government is too big. great. but then i find it upsetting when i ask them, what would you cut? they don't know. >> oh my. i don't know. you can't cut education. >> you can't cut health care i don't think. >> i'm not sure what else you can cut. >> i want to point out a few people on the street were quick to names things government should cut. >> education spending and social programs. >> really? what about the people who need them? >> that's what the states are for. >> you don't want to pay for my health care? >> no, sorry. >> what would you cut? >> anything not authorized by the constitution. >> what happens to the poor people? >> i'm a poor person. i would eat, find a way to eat. >> i haven't heard people say

this until this decade. that is new concept. >> actually really fantastic. a thing that doesn't come out about government spending is crowding out private institutions, private charities to come in and hem people in need. of course, we don't want it to be a do it alone society and these people on the street recognizing that. local church is much better option for helping people in need. >> next topic. nsa spying. all three of you say this is one of the biggest stories of the year. but i just don't get it. something must be wrong with me. i assumed spig was going on. i assume my political enemies somehow read my e-mails, the stuff flies through the air. i assume my 16-year-old neighbor can pick it up. i made this list of 100 things i hate more about my government than nsa spying. after i put this up on facebook, libertarians trashed me called

me disgusting, an lino. means libertarian in name only. so, please educate me. what am i missing, nick? >> i think you are particularly cynical about government. and of course, it's true that libertarians generally think the worst of government. they think the worst of centralized power to begin with so you near a rare place. the reason why the edward snowden revelations about the nsa or broad-based wide scale surveillance by the government of virtually every transaction, every interaction you're having freaked people out because that's not what the government is saying to them. barack obama and other people in his administration have point of fact said we are not looking at your phenomenon calls, not looking at your internet browsers, not doing any of that. it turned out to be wrong. these are things that outrage people because it's such a disconnect between the public face of government and what it actually does. that that's why -- >> more than the drug war? >> most of us don't use drugs

and we think the drug war doesn't affect us that much. we all drive cars, have mail and have telephonings and spying on us. not just terrorists or foreign leaders. i don't think americans understood that and there's an eruption about it. >> what huge eruption? >> well, there's a -- >> i think there's a pretty huge eruption. certainly among journalists putting it on the front pages for a long time and among -- certainly among all the wired citizens in the country. lots of internet outrage. now, as has it cost anybody an election? we haven't had an election since this came out. has it cost the government a lot of the trust that it had built up? yeah. >> gallup found all-time high of americans something like 65% of independents believe that the government has too much power. i think that's directly attributable not only to the, you know, failures of various

government policies but the disclosures. people are very, very bothered by them. >> it was a fear of the mill stair industrial complex and now a realization of a military material complex. >> people want to kill us. there's not a spy listening to my phone call. these are big data sweeps. they might catch a terrorist. say that are. >> ultimately there's too much data and need targeted searches of people actually threatening americans. we can't just throw a net over all mitt romneys and hope to find somebody who's bad. >> you know what one of the colleges of the american revolution was? it was the ritz writ of assista and put it in the constitution that you can't do that anymore. you have to get a specific warrant. you have to say, we have reason to believe that in this address there is terrorist related activity. >> that's not coming into my house. the machine says he's talking to

-- >> looking at -- phone calls go. e-mail gunshot. >> also important that even -- you know, of course, always wrapping it in the shroud of government secrecy. you have to trust us. we have been lying to you for a very long time whether or not we're spying on you but trust us saying we won't abuse it. the cases this people in congress like dianne feinstein and people in the nsa and whatnot brought forward to say this is how we use the data, the cases do not rely on mass data sweeps but police and intelligence work where you infiltrate a known terrorist cell, find an e-mail address and tracking that. it's never about the, oh, collecting everything. run it through brainiac 65 and then there's the terrorist with a bow. >> and they're asking us to trust them as they repeatedly lie and then say, oh, okay. well, i wasn't telling the truth then but now i'll tell you we don't do anymore than that. a week later, it is not more than this.

they're serial liars about this. >> if you want the keep the conversation going, go to facebook or twitter. let people know what you think. and later in the show, if we haven't been hit by a drone, senator rand paul will be here to talk about his filibuster against unlimited drone strikes. and also, his new idea freedom zoens. but next, more of the good, the bad and the ugly of 2013. and the ugly of 2013. and the ugly of 2013. we will have the next. hi honey, did you get e toaster cozy?

yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. the day building a play set begins with a surprisewinge of back pain... and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ [ male announcer ] that's handy. millions have raised their hand for the proven relief of the purple pill. and that relief could be in your hand. for many, nexium helps relieve heartburn symptoms from acid reflux disease. find out how you can save at purplepill.com.

there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exi. avoid if you te clopidogrel. for many, relief is at hand. ask your doctor abouxium. to book this fabulous tel. michael, tell us why you used priceline express deal wellou can see if a hotel is pet-friendly before y book it and i got great deal without bidding. and where's yoururry friend? i don't ha a cat. save up to 5 during priceline's holidahotel sale. use promo code"holiday" for amazing savings on express deal hotels. now this sale won't last forever so dash on over to priceline.com. express deals. priceline savings without the bidding. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year at the lex december to remembesales event.

this is the pursui of perfection. at the lex december to remembesales event. sleep traiends sunday! interest-free for 3 event it's your last chance to get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. plus, get free delivery and sleep train's 100-day low price guarantee.

but hurry, sleep train's interest-free for 3 event ends sunday! superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ this is not the time to be silent spectators to slaughter. >> we can stop children from being gassed to death. >> children were gassed to death. syria, children and adults. and we did not intervene. though our political leaders as you heard said we must. so, what happened? we're back with our panel. david, sabrina and nick. what happened? >> what happened was the country didn't want to go to another war in a muslim country and so the president and the secretary of state and a lot of republican leaders made this argument and as you say it's a compelling case. terrible things happening in syria and the president said i don't need congressional

authorization to do this and then there was enough feedback or push back on that he said i'll go to congress and ask and once he said that it was clear congress was listening to the people, the people didn't want to go into this war and so they just kind of dropped it. >> rand paul happened. that his push back, his leading the fight against the syrian intervention really gave congress a spine for the first time arguably since korea. >> congress hasn't voted on these. >> they have always been going along to get along and that ended. people are like, you know what? 12 years in iraq. 12 years in pakistan or afghanistan. and everywhere else. good luck with this one. we're not supporting it. >> sabrina, you point out we have clear interests in syria. >> we do. we want the chemical weapons out of the hands of terrorists and not become al qaeda's stomping ground and iran have a neighboring partner. the harder part is what do you do about? that? a tyrant on one side and a

rebellion compromised by al qaeda on the other side. what is it for the united states to do? >> we decided not to do anything. and you say good? >> right. >> probably. >> after the newtown school shooting, another big push for gun control. here in new york city, my friends and wife said, how could you not say there shouldn't be more rules against the terrible weapons? and yet, no new legislation resulted. so, what happened? >> i think what happened is that people recognized that you don't make good laws in the wake of a tragedy. which sandy hook -- >> people recognize that? >> i think so. you know, in this case, as you were saying, major gun control legislation did not go forward at the national level. >> the media doesn't deny it. pass it, pass it. >> they don't get to vote. >> people are smarter than the media? >> maybe. >> the fact of the matter is what people understand is over the past 20 years or more, there have been liberalized gun laws.

more people own and carry agains in more circumstances across the country and violence has gone done dramatically. >> east coast elites, liberal elites don't like guns. they don't know guns. haven't been around guns. heartland of america, what they call fly over country, lots of people use guns, mostly responsibly. they can give them to the teenage kirds and teach them to go hunting and a lot of bloomberg hollywood axis don't understand that and surprised when these terrible things happen and it doesn't cause the american people to say, we need to crack down on guns. in fact, opposition to stricter gun control has been going steadily up in gallup polls 20 years. >> 2013 the year when a major american city declared bankruptcy and i fear detroit's just a little ahead of the rest of the country. sabrina? >> a problem for detroit is

politicians and union leaders sort of, you know, each rubbing each other's backs. the unions kept the politicians in business. the politicians then rewarded them with cushy pensions and i hope there's a lesson for many other cities throughout. >> in detroit, they kept electing politicians that said they were going to fix it now. instead, well, cnn got this one right. >> they turned city hall into a den of bribes and kickbacks making themselves rich. >> the former mayor charged taxpayers for 54 trips, limo rentals and unusual. some 50 cities have gone broke since 1980. usually it is about just giving to the workers. >> you got the politicians who get money from the unions and the unions who get money from the politicians and they sit down and engage in hard bargaining and that's why detroit is the canary in the mine for a whole lot of american cities and states who are so far

in debt with their public pension plan. >> catches up with people and hopefully other cities will learn from detroit and mend their ways before they go the route of bankruptcy. >> you pointed out in cities and state government there's a groupon attitude to get a dollar and spend 60 cents. >> paying 60 cents for a dollar's worth of perceived goods out of that, of course you want more. this is at the federal level where the government literally borrows 40 cents of every dollar that it spends and happens at the local level and shows up quicker. local places run dry quicker because they can't print money but we have to get out of the mentality. you can't get a bargain forever. >> let detroit be a lesson. later in the show, i'll put on my santa hat and tell you who was naughty and nice this year. but next, some good news about the year and also we ask you to vote on what you want our panelists to discuss. we'll tell you which topics got the most votes when we return. r.

upgrade to the philips norelco sensotouch 3d r. for the most advanced shaving experience. with gyroflex 3d technology, you can get to those hard to reach places for the ultimate shave wet or dry. guaranteed. visit philips.com/upgrade now to save $30.

the deep sweep power brush by oral-b for the first time. wow. it's "wow," you know? wow. wow. that feels "wow." [ male announcer ] oral-b deep sweep, featuring 3 cleaning zones with dynamic power bristles that reach deep between teeth to remove up to 100% more plaque than a regular manual brush. it seems like it gets more to areas of your mouth that you can't reach with a regular toothbrush. [ male announcer ] guaranteed "wow" with deep sweep from oral-b. #1 dentist-recommended toothbrush brand worldwide.

on facebook, we asked our audience to vote for the topic that you'd like to hear our panelists discuss. the bwinner, overwhelming winne, common core. most of america doesn't know what that is but they should. it's government's plan to make sure every government school has the same standards. >> that's where the common core state standards come in with the same rules, everybody can compete on the same kind of staircase. >> sounds like a good thing. >> really? centralization. conformity. all children are different. states have different populations with different needs. but a small group of elitists in washington want to impose one set of rules on schools in

15,000 school districts across the country. >> this is a long-term plan to centralize and kind of -- >> don't we need a standard test to see is the kids learning? >> well, we have standard tests. we have the s.a.t. and plenty of tests and you say standard test, there's no standard test for what a tv show should look like but the market. there's no standard test for what a smartphone should be like except what people are willing to buy. >> the market. >> the workplace allowing flexibility to telecommute, entertainment people buy and watch what they want when they want to watch it. why would this be -- this is so old-fashioned. why have a -- >> government knows best! don't you know that? >> wait a second. finally. come over to the good news this year. there's some stuff we should celebrate. david, you start. >> well, there was progress this year on marijuana freedom. a couple of states started implementing decriminalization and progress toward marriage

equality. that was a good thing and both of these things did not come from washington. they came from the people and from the states. and around the world economic freedom in the world continued to increase. not in the united states. but there's a 30-year trend -- >> we fell down to 17th. >> in the world as a whole, there's been a slow, steady progress over the past 30 years toward more economic freedom. >> hoo ray for the world. >> despite the common core story, there's wins for educational freedom. new tax credit programs, education tax credit programs and expansion of tax credit programs in alabama, i with and others. we saw education saving accounts expanded in states. i think there's a lot of good news in education front. >> for me, the single biggest story of a game changer is edward snowden revelations and builds on things done earlier by anonymous and other agencies. there's a different grammar to

running governments now. you will be found out when you're lying to people and saying one thing publicly and then privately and i look forward to when this type of revelation is layered into things like the department of agricultural subsidy programs, we're at the very beginning age that is going to bring true transparency and leave government people shaking in their boots. >> a result is the polls show pugh says only 19% of the people say they trust the government to do what is right. just about always or most of the time. and reporters wring their hands. losing faith in government. i say, yippee. they're finally figuring it out. >> 22% of americans say they identify with the tea party and i think probably a little bit understated because it's being demonized in the press right now but i feel comfort knowing almost a quarter of the population wants to identify with the movement whose goal is to rein in government and gives me hope in 2014. >> thank you, nick, sabrina, david.

coming up, some new ideas from senator rand paul. a febreze car vent clip. which comes out on top? we brought real people to the texas desert to find out. it's just nice. very crisp. cool and fresh. that's what i was thinking! fresh. that's exactly what i was thinking. yeah. fresh. fresh. like i could definitely wrap myself in it.

odors are no match for the febreze car vent clip. another way febreze helps you breathe happy.

in 2013, our rulers added to this pile of rules that all of us must obey and each of these rules is probably well intended but together they strangle life. tough to find people that understand this or can explain it so i was delighted when a lawyer i barely knew looking that the pile of regulation suddenly erupted with statements like this one. >> this is an agenda of control for its own sake. that's why regulators do what they do. >> come on. control for its own sake. their not machiavellian power freaks. >> they like rules and they live

to enforce rules. >> that went on to become part of my tv special, "war on the little guy" to be shown on fox again soon and now the star of that special institute for justice lawyer jeff rose is back to tell us about three new assaults on the little guy. this new focus is on food? >> that's right. we have a new food freedom initiative and this is about grassroots movement of people who want to make and sell simple, wholesome, tasty food and the mile-high wall of regulations they run into trying to do that. >> food freedom. all right. let's talk about your first case. you represent small farms in oregon that sell unpasteurized raw milk but are forbidden to let people know about it. >> i'm not allowed to put up an ad in my local health food store or take it out on the newspaper or go to a festival and promote our farm. when i have a new customer find, they can't find the farm. how will i make this business

work if i can't talk about it? >> what's the logic? >> there is no logic. if something is legal, the first amendment says you can talk about it. >> the bureaucrats and they wouldn't talk to us. they say it's in litigation. the agriculture department. they must have some reason. >> yeah. the bureaucrats think that the food that people have eaten for thousands of years just isn't safe. that handle -- raw milk is like juggling hand grenades and don't want you to do it. >> i think they have a point. it is unpasteurized and ought to be free if it's -- you're allowed to sell it, you can tell people. >> there are people out there who want to drink raw milk and a free country and should be able to do it. >> relatively free country. next case, do you have a vegetable garden? hope you don't have it in your front yard in miami shores, florida. this couple has had one there for 17 years. they grew onions, peppers, lettuce. but this year, local government said, rip your garden out.

>> you can have crazy garden gnomes, flamingos, pineapples, peaches but not carrots. look at it this way, john. washington was a former. farmer founders didn't fight a revolutionary war to create a system of government where people can't grow carrots on their own land. >> suppose you like to cook, suppose you're good at it and sell some of what you make. in minnesota, watch out. >> this is jane. jane bakes cookies. and cakes. and breads. and scones. jane bake it is treats in her clean kitchen at home. jane takes her treats to the local farmer's market. they're a hit. this is a bureaucrat of minnesota. minnesota doesn't like small businesses like jane's. when customers want to place special orders for treats, minnesota says, no. maybe jane can sell them from home. >> not going to happen. >> they're worried about food safety i assume. >> and if bureaucrats had their

way all we would do is eat pablum from spoons and bowl that is the government gives us. that's wrong. you should have a business with an oven. >> they allow her to sell it at the farmer's market but not other places? >> not other places. and if you want to sell food and people want the buy your food, it shouldn't matter in a farmer's market or over amazon.com. >> the farmer's market, can't get more than $5,000 a year in sales? that's $96 a week. not enough of a -- >> of which what is profit? maybe $10 a week. you can have a job as long as you don't make more than $10 a week at it. crazy. >> she has interest of stores, job sites, special orders, catering jobs. can't do it legally. >> not legally. and this is a thing that small business entrepreneurs, not just the food area run into across the country.

>> the department of agriculture in minnesota said we can't comment because of the lawsuit. when you take these cases, do you tell people like her, go ahead and sell it or stop until we win your case? >> usually we tell them you better stop until we win the case. if they're going to get in serious trouble. but if it's free speech, do it. >> thank you, jeff rose. i'm glad the institute for justice takes the cases for nothing. coming up, santa, where's the hat? will tell us who's naughty and nice this year. but next, senator rand paul. he didn't think it was right that -- when people earlier this year asked the president when's it legal for america to kill someone with a drone? the president wouldn't give an answer. so senator paul stood up on the floor of the senate and talked and talked until finally we got an answer. a good answer? i'll ask the senator about that and about what his critics say, next. >> rand paul is not a flawed

messenger on this subject. he is a ridiculous, sick, paranoid messenger on this subject. ♪ ♪ ♪

♪ verizon now has the gifts everyone wants. that's powerful. verizon. because you can't beat zero heartburn. woo hoo! [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. ♪ [ female announcer ] may your holidays be merry and bright. merry pringles.

this year would have been worse for liberty were it not for a few freedom fighters in congress that pushed back against big government. one that probably did the most is senator rand paul of kentucky. senator, you led a filibuster over america's drone policy. why? >> well, you know, john, i'm kind of a stickler for the bill of rights. i think we are and we should be innocent presumed to be innocent until found guilty by a court of law. our founding fathers thought it was important enough to enshrine it in the bill of rights and i was worried the president would say, hey, i can kill americans without any kind of trial, without any kind of accusation. and it sounded absurd but i asked the president the question, he wouldn't answer the question. i asked him repeatedly and then a filibuster and it was like pulling teeth to get him to admit he didn't have the authority to kill an american without a trial. >> did he answer personally?

all i have is his attorney general said, does the president have the authority to use a weaponized drone to kill an american not engaged in combat on american soil? the answer is, no. >> yeah. came from eric holder. we presume that's coming from the president. we figured this was significant because presidents don't like to admit any limitations on their authority. >> did you really think the president might launch a drone against some american in wyoming? >> i never thought the president would do this but i thought it strange that the president wouldn't admit he didn't have the authority. so a lot of this is about the law. the law is important. but the rules of government aren't always about who's the current president. they're about the rules that bind all presidents and all people and madison said if government were compromised of angels we wouldn't need the rules but the rules are out there for the time we're unlucky never we get an ogre and so you

really do want the bill of rights to protect us at all times. >> after your filibuster, you took heat from a lot of people, lawrence o'donnell called you sick and pair noid. john mccain said this. >> if mr. paul wants to be taken seriously, he needs to do more than pull political stunts that fire up libertarian kids in their college dorms. >> it did fire up libertarian kids. i thought that was great. stand with rand on twitter took off. but you work with senator mccain. how's that going? >> you know, we actually have a good personal relationship. i respect him as a war hero. doesn't mean he's always right but he does deserve my respect and others for his time spent in a -- as a prisoner of war. but i think one of the points about the debate is very, very important because his point of view is that if you're deemed to be dangerous, of course, we can

incarcerate you with no trial and no attorney and no charges. and my response to that is, it begs the question, who gets to determine whether or not you're guilty of something? the government now has criteria that says you're suspicious if you like to pay cash at the store. if you have missing fingers. stains on your clothing. or have changed the color of your hair. that might include quite a few people in our country. >> includes me. >> you don't have to go back to see government abusing the power. look at the irs scandal where conservative groups and religious groups were targeted for political beliefs and given different type of treatment, you know, by the irs. unfair treatment. every cell phone call in america every day is being kept, the records of this, and analyzed by the government. that goes against the frame work of what the founding fors were fighting for and what they established in the 4th amendment. >> why are you threatened if they know who you talk to on the phone or if they know what

number you called? they're not listening to the call. >> well, one is just none of their business and i shouldn't have to justify my privacy to anyone. say i'm an international business person and deal with people in sweden. now i'm talking to a foreigner and they say, all foreigners communications are open. but what if we're negotiating a billion-dollar purchase of a business. we don't want the competitors the know. there's all kinds of reasons people have secrets or maybe somebody has a personal relationship they don't want divulged. there's a protection of privacy and let it lapse and i think it's very worrisome when's going on in government now. >> finally, you propose a new idea which i like. economic freedom zones and an option for places like detroit and high unemployment. so lower taxes? >> well, instead of asking houston to bail out detroit, what we do is lower taxes in detroit to help detroiters bail

themselves out. if you reduce taxes, you let the customers pick the winners and losers because those that pay more taxes get more back and those are the business that is have shown that they can get customers to vote for their business on a daily basis. it would leave over a billion dollars in detroit, not send it to washington. i think it's a kind of free market stimulus to work. >> and not just detroit. anyplace with high unemployment, same thing that parts of china have tried and thrived. >> yeah. i think it's good republicans can be for something, consistent with our beliefs but actually would help people in need of help. >> thank you, senator rand paul, and if you'd like to learn more about his economic freedom zone, i posted a link to the plan on my twitter page. coming up, i'll put on my santa hat and get out my secret list. when's been naughty? who's nice in 2013? that's next. as to who is naughty and nice and 2013. and 2013. that is coming up hi honey, did you get e toaster cozy?

yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ sniffles ] i have a big meeting when we land, but i am so stuffed up, i can't rest. [ male announcer ] truth is, nyquil cold and flu liquid gels don't unstuff your nose. they don't? [ male announcer ] nope. they don't have a decongestant. really? [ male announcer ] really. alka seltzer plus night fights your worst cold symptoms, plus has a fast-acting decongestant to relieve your stuffy nose. [ inhales deeply ] alka seltzer plus. oh. what a relief it is. [ male announcer ] can't find theraflu, try alka seltzer plus for fast liquid cold and flu relief. pop in the drum of any machine... ♪ ...to wash any size load. it dissolves in any temperature, even cold. tideod pop in. stand out.

♪ okay. it's time to open my book and report on who in 2013 was naughty and who was nice. naughty first. who gets lumps of coal this christmas? well, nancy pelosi for one

saying government does not have a spending problem. really? she also said government cannot spend any less because the cupboard is bare. >> there's no more cuts to make. it's really important that people understand that. >> no more cuts? the cupboard's bare? they spend more than 3 trillion. the cupboard overflows and puzzles me the president says -- >> over the past two years i have signed legislation that will reduce our deficits by more than $2.5 trillion. more than two thirds through spending cuts. >> what? spending cut? no. he's been naughty. they didn't cut much of anything. the deficit decreased because the stimulus expired and the president proposed increasing spending by less than he wanted to. it's not a cut. it was also naugtdty to say this about obamacare. >> every time they have

predicted something not working it's worked. >> hardly. they applaud but didn't work. that's why they postponed that mandate. i guess the problem for the president is that we have got a government that's now so big, so powerful, no expensive and vast it can't adequately be supervised. >> right. senator mike lee is on my nice list for pointing that out. david axelrod afreed with him this year so he's on the nice side of my ledger, too. along with rand paul because he demanded that the president come clean about drone strikes. >> i cannot sit at my desk quietly and let the president say that he will kill americans on american soil who are not actively attacking a country. >> a shock that a senator has to say something so obvious. two other republicans go on my naughty list.

john mccain because after the filibuster he called libertarians whacko birds and chris christie because he said this. >> this strain of libertarianism that's going through both parties right now and making big headlines, i think is a very dangerous thought. >> no. it's big government that's dangerous. a lump of coal to governor christie. but nice gifts for democratic senators tom harken and jay rockefeller. surprised to find them here on the nice side of the ledger. oh, they retired this year. that's good for all of us. and this town's billionaire mayor michael bloomberg will retire, too, and that's good because he somehow doesn't understand that government is for us. moving to ban the sale of big cups of soda, he said this. >> we're not banning anything. all we're saying is we want the show you just how big the cup is. >> no, mr. may nor, you're not

showing us things. a ban is a ban. government is for us and government force only grows. we already must obey thousands of pages of rules. yet they always add more. >> bunny rabbit, give casey a big hand wow! >> magician was told he was in violation of the animal welfare act because he didn't have a disaster escape plan for his rabbit. >> she said from now you cannot use the rabbit until you fill out paper work, pay the $40 license fee. we will have to inspect your home. >> come on. this is ridiculous and they laugh and say, yeah, no it is but we have to do this. >> they don't laugh and say -- ever. >> so, you bureaucrats, you are on the naughty side of my ledger. actor vince vaughn, on the nice side for coming out in hollywood as a libertarian. this child is also there for

fighting for people's right to sell mistletoe. >> if people want to work, let them work. >> and on my nice list, this guy who wrote a wonderful book "no they can't" in response to government's claims that, yes, we can do everything. and finally, this one's a surprise to me. the speaker of the house is on my nice list. oh yes, because he said this. >> we should not be judged on how many new laws we create. we ought to be judged on how many laws we repeal. >> yes. if they only would repeal something. they never do. my wish for christmas is that reporters stop whining about what the do nothing congress does or the least productive congress and instead celebrate the fact that politicians not passing more laws means more freedom for santa. and for the rest of you. and with that freedom we do good

things outside politics. that's my good, bad and ugly for 2013. see you next week. al ber to, welcome to red eye. tonight -- >> coming up on "red eye," level tating hot chicks. bizarre illusion or human evolution? does the white house think the christmas was a mistake? >> wasn't great for the country. it was terrible for the country. wholly unnecessary. finally, are the americans considering replacing soccer players with cows for next world cup? the story fifa doesn't want you to hear. none of these stories on "red eye" tonight. now let's welcome our guest. i'm here tonight with miss new york usa and favorite sleeping aid are his own