>> are you a member of the privileged class? you get special breaks in life? politicians say. >> we will all benefit from it. >> all don't benefit. the privileged benefit. >> is there any other large employer that gets the same treatment? >> it doesn't only apply to congress. >> we will be darned if we are going to lose their health insurance because of unintended consequences. >> so unions have a special

break. >> keep it rolling. >> movie stars and their kids. >> don't let someone tell you that you can't do something. >> which it special rates? so do investors in certain kinds of energies get this? that is our show tonight. ♪ ♪ >> and now it is time for john stossel. >> for the first time most of america's richest counties surrounding washington dc. washington is where you go if you want to show privileges and that is where they dole them out and as government grows washington is also where they say that we are all equal and in

this together. when the government is very vague, that is a lot. >> all of us are equal. john: what about all of this writing about communism? the principles apply to america today. the ggvernment central planning hurts everyone a little but rewards people with connection. >> the animals themselves are no better off. john: they were the political leaders and over time they prospered at the other animals expense. ♪ ♪ john: some are lower than others. today the animals that are more he will than others are washington politicians and their

cronies. and those who get close to the politicians. that is how in the budget deal hollywood film producers got a special break. nascar got $70 million to build a new race track. multinational corporations of offshore subsidiaries got a 9 billion-dollar tax break. and the active part of this is proud progressive who says it is right but who needs help and many need america's tax reforms and they say that we should shrink government so they can't make some animals are more equal than others. do you really want them picking the winners with all of these trillion dollars? >> if we are going to have government and laws, it is

absolutely the case that some old will get some benefits in this. that being said, the impact of government is tiny and trivial compared to the impact that the market has that heredity has that the number of other factors have or if you want to be rich in this society, the best way is to be born thattway and if you are not born that way marry a rich person and if you do not marry a rich person go into the market and sell goods and services that people want. that will get you more rich than sucking up to the government. john: that is fair, but having government give it to you because you know someone isn't. >> it is inevitable that if we want government to do things for us and we want roads and bridges and a safety net, sommone somewhere is going to benefit from that and you can't use that as an excuse to not do important things. >> no libertarian other is going to say that we shouldn't have the government involved. the question is can we do maybe

a public and private partnership where they can make their investments back on the road rather than those who are out there to build the roads. these are the questions we should be asking. john: keep government small so these are in the hands of politicians. and you don't use some notion that this'll be a little had been a little behind to making the choices are in someone is going to have to build that road and it might be your friend or it might be john's friend. john: what about the nascar track remount. >> i don't know. >> i'm not going to defend every single tax break.

the bureaucrats, these are not folks that we have this war. >> this applies to congress. >> republicans and democrats and we don't want to treat them like the rest of the country. so why do we need to be

outraged? >> that's not how the health care law is written. your employer doesn't give you any more premiums or subsidies for the premiums of your health care costs and that is just a deal and the folks who wrote that law have to abide by it as well. >> labor unions would make obamacare supporters until after obamacare is passed and they read it and discovered some of us will have to pay more. >> we are going to lose her health insurance by a unintended consequences and it needs to be fixed now. >> it will exempt the unions and what we just complain about. others have to pay it. >> this is the way we fight this stuff in a democratic society.

some are smart about maneuvering and at least we are doing this in a playing field. >> it is the cap on health care benefits. isn't that unfair?

i think that the facts would suggest that this is part of it. it allows these political groups to take tax deductions that are doing political stuff. let's get rid of that and make it clean and make all groups take their share. >> is that include labor unions? >> just come it doesn't. john: all right, we can agree on that. it would be nice if the taxes were lowered her head certain investors get special privileges if they invest in what politicians call green energy even after the solyndra debacle he told people he wants more money given to certain companies to pay for research. >> it is too expensive and too risky. then we will all benefit from it. john: we don't so much all benefit from it. certain people do.

it didn't pollute everything. so what we have for alternative energy? >> that is because the private market is not going to bear. >> the market is demonstrably.

>> i agree. the oil companies deliver it. there is something extraordinarily neat about this. a lot of times allowing the oil industry to deduct the same thing that other manufacturers are allowed to deduct as well. john: he raised about a hundred thousand dollars and made several businesses to the white house. and this is the guy who is behind solyndra. >> i'm not blaming solyndra. their sleaze bags in every industry.

this includes our sincerity aries and beacon powder and so much, one after the other. >> if you look at these. they are the most open and honest administration in history. >> it's terrible when you read this list of these companies. i think if you look at it in a broader context, the failure rate is far less than in the private marketplace. >> why should we have the government ensuring myth.

>> many are trying to gain traction as well. >> we want all of those things as well. we are losing the debate because with every debate government grows. john: coming uu, privileges for moviemakers. movie makers.

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incentives are part of this. can filmmakers go left? california has great weather. but it also has expensive unit were rules in high tax. so well where should the movie producers now? forty-two states offer movie producers incentives. he has produced tv shows.

>> i think they should be abolished. john: why is that? >> they don't make any economic sense. so the state of rhode island got 20 cents for every dollar they spend and they did a study that shows that they got 8 cents back for every dollar they spend. john: but they keep spending. >> i have the responsibility to produce the to get movies going. john: they criticize the film tax credit.

>> over 6000 jobs in the past two years alone. it is about people who dream of living and working in their home state and who can't afford to lose. the michigan film tax credit. keep it rolling. >> it's about people who work in their home state and lose their jobs. -p>> basically there are incentives that really turns into 42 different solyndra companies over the country. john: do you have a friend? >> yes, i feel like people do let you voice your opinion. i think you continue to work.

john: what about states and countries too. the producer of avatar. >> i know john is a great producer and if i was in his jewish never do the same thing ultimately it is unfair trade practices. what we should do is abolish all of these trade practices here in the united states. not subsidize other industries that we currently subsidized. and then penalize countries like new zealand were competing with us unfairly. look at the rest of the world to do it all on a level playing field. the crews and workers and people here in southern california will always win out because we have the best in the world. >> and the only way that they can do.

>> they have to pay for these subsidies. you are an honorable man. john: coming up, celebrating hollywood in the muskrats way. john: but if you are not i'm sorry for your loss. still doesn't feel real. our time together was... so short. well, since you had progressive's total loss coverage, we were able to replace your totaled bike with a brand-new one. the tank, the exhaust... well, she looks just like roxy! you know, i'll bet she's in a better place now. i'm sure she is. [ ethereal music plays ]

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spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. [ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. john: your home is your castle. and less government visuals decide that they can do better things with your property for the greater good. a law called eminent domain allows governments to grab

private property to build things like parks. however lately more politicians are using eminent domain to grab people's land to help privileged developers. ryan briggs from the philadelphia city paper reports on this is here with us. >> a gentleman named rick young essentially lobbied local councilwoman for funding and eminent domain in an impoverished neighborhood in west philadelphia and he was also a political donor to that same councilwoman.

>> it was handled poorly and their obvious ethical conflicts of the city knew about. john: thank you for bringing this to our attention. we might thank you. john: politically connected, but what about the people who own property where the development is supposed to go? the studio is owned by this gentleman and the government plans to tone it down. >> unfortunately the building was up for sale for 2.2 million. i have built 10 rooms and artist studios and they are fully lovable. john: this is serious art. >> i have five pieces in the philadelphiaaart museum and other pieces around the world.

john: so the government says that we need a supermarket. >> fine. but i need my studio. you can have my property if my property was up for sale. they could make me a decent author. john: why would they make you an offer for $2 million if you can get his cronies to get it for $600,000? >> it's not fair. johh: we got an answer where they said that we have met with your representatives and we are working towards a resolution that will accommodate both you and your needs and your desire to bring healthy and nutritious food to the world. >> it is not a food desert. john: that is what they call it. michelle obama talks about it.

>> they have more vacant lots in any part of the city and they decided that they wanted this parcel of land. john: what is this about? >> it's about seizing the land for future development. john: cronies helping other cronies? >> they could be. john: coming up, our next guest will defend nepotism. he will defend these privileged brats. we needed 30 new hires for ourall center.

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beverly hills. i was raised by immigrant parents who told me they were giving me nothing, you have to make it on your own. and that makes sense to me because america is supposed to be a meritocracy. but adams says that i am wrong to emphasize meritocracy. he is the author of in praise of nepotism. and you are the son of the famous author, so you are cheating. he gave you a break. right? >> that is what you would think. actually my father was terrible with nepotism. and he had no connections that were of any help to me. and even if he had a wooden be the same thing. i try to become a writer in my 20s and i wasn't as talented as my father and i was a bbg surprise. so i went into a related line of work. and the people that hired me felt that not just my name and

my background and upbringing, the kind of education and the values that i inherited from my father would make a good fit in the publishing business that would be the case. whether or not we consider it to be fair not because someone enjoys advantages due to their birth, we are prepared to take this on an individual basis. so if you are axle ford and you are not very good at designing cars,, you go down in history as an example of bad nepotism. john: so you agree that the stupid tv show, the rich kids of beverly hills, they are celebrating their wealth? >> yes, that is what we call rags to rags in three generations. >> what you mean about that matter they squander the money? >> yes, it is.

it's cliché for a reason. john: look at these headlines with energy department. nepotism is open and widely accepted. but it is open at the energy department. that is disgusting. >> it's a very old story in american politics. there has always been a feeling in america that people in politics should be drawn there and not because of traditional family values. >> he is the best of i person to run for president, but i hope he won't. the clintons, the bushes, they are just more qualified.

john: there are a million more families in that. >> the public says we don't like nepotism, but we accept these guys. >> we in general condemn it. but on a case-by-case basis and we tend to approve of it. in the new nepotism the successor has to prove his worth. john: on to hollywood. actor will smith put his kids in

movies. >> hollywood is a family industry. not just in the profession but in directing and acting alone. >> drew barrymore is the daughter and angelina jolie and jon voight. martin sheen, charlie sheen and emilio estevez. and he and charlie are more famous than emilio estevez. so is nepotism working for them? smack it works in hollywood. but americans are not an envious people. and that is the hallmark of americans and we're perfectly

fine with michael douglas becoming a movie actor because he is talented. john: what about how it intrudes on my profession? "the today show" used to be a job you had earned. but is this correspondent earning a? >> we have some first-hand experience. good morning and good to see you at. >> thank you. john: she is one of george bush's daughters. >> really grateful to be here with you. thank you for the opportunity. >> i love getting interviewed by someone who actually understands what it's like. john: give me a break.

it's just so bizarre. >> you agree with his? >> this? >> yes, but my point is this. if people show that they have some ability once they have received some benefit. then in general the public is perfectly prepared to accept it. john: i'm not fine with that, but thank you adam. next, what happens when government tries to cut back on special privileges? sometimes the people who are grown accustomed to the handout riott and in one case jury farmers pour truckloads of milk on the the day we rescued riley was a truly amazing day. he was a matted mess in a small cage. so that was our first task, was getting him to wellness. without angie's list, i don't know if we could have found all the services we needed for our riley.

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john: the u.s. government is much too big and it's wrong to give so much money to the privileged class when it could be worse. art government consumes about 40% what we produce. most european governments take even more than they give big bucks to all kinds of special interest groups. and then when our country goes broke and cuts back, this

happens. government workers are being asked work late. and joel, this covers you for "the wall street journal." all kinds of stuff is going on like that. britain gave $107 million to rolls-royce? >> yes, they already manufactured at time of their products in asia. >> the french government not only subsidizes movies made in france, but they subsidize foreign movies if we mention france? smack that is correct. there is an elaborate system of quotas and and evaluation to look at movies.

and a billion dollars, 700 million euros this year's. john: some of the tortured script that americans come up with that qualify here as well. here's a clip of one american movie. >> that act debates this and then to las vegas. >> i went to see this and i watch the scenes unfold. with french characters appearing and i'm thinking to myself that there is no possible way that this could have come about without someone thinking about

the subsidies. >> in brussels the eu subsidies face about 60 billion euros a year. and then there are lots of private for profit companies that now exist solely to advise businesses and individuals on how they can get these new subsidies. john: some of the subsidies, a hungarian for about $560,000 to develop hydrotherapy for dogs. >> that is correct. hydrotherapy for dogs. the world wildlife fund also got 16,000 euros for effectively a nature appreciation program for italian farmers.

>> they have become more aware of their emotional reactions to it. >> they got this money to help the farmers commune and part of this tax money. >> once these exist, it is time to get part of this. they have finally made some cuts. in france farmers are one privileged class when they decided to allow more milk reduction, farmers for their milk on the ground in protest. so once you get your goodies come you get angry when someone wants to take away. >> yes, exactly. this is what happens when they get upset. especially a pretty regular occurrence in europe. >> some of the other tax subsidies, germany gives tax

village status to those involved in development of culture and animal protection and sports. doc sports? >> yes, if you are a caliber, you are out of luck. >> and people are okay with this? >> notnecessarily. your creditors are not necessarily okay with it. as seen within the last two years. but if you are someone -- it's actually hard to not find a way to get a subsidy in europe. i guess people seem okay with it because a lot of times if you try hard enough there is money in it for you. john: this is a bad system. thank you so much. coming up, a way to cure the culture of special privilege in washington. >> let's move the capital to the city of

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>> today for the first time, most of the richest counties in america surround washington the week. john: that is because money goes to where people can grant special privileges. and the rich get even richer. in washington even underpaid workers resemble palaces. this is a teachers union headquarters. we are told that is worth $100 million in.

>> and they said no, we couldn't tape inside of there. but i wouldn't care about their brand building integrated wealth. but the privilege does create much value in and they just feed off the people that do. and if government grows the problem gets worse. what might be done about that. >> a way to carry incredible ineffectiveness or both parties in washington. removing the capital to nebraska and leave the lobbyists and the influence back east to. >> that is an idea from the someone was running from the senate. by with less privilege be handed out if congress were in nebraska?

>> we need to leave this permanent bureaucracy alone in behind. permanent bureaucracy alone in behind. >> and they would follow the capital to nebraska. >> well, what we need to obviously recognize is the incremental tweaking that won't affect what we have. a river of money flows to washington right now and we need to be talking about fundamentally about the limited number of constitutional duties of the federal government has. this is a mass. >> your commercial is called the outsider. you were chief of staff at the u.s. department of justice. chief of staff to a representative and you had a consulting contract with the department of homeland security. you're the assistant secretary for planning at the hhs and you've only been out of washington a few years. so you're just another insider? >> yes, it is a fair question but it's not reality. i have worked in washington for about four years.

but i am a private sector type of guy and my wife and i are raising our three kids less than a mile from where i grew up and if you think where washington is where value is created? we don't believe that a nebraska. the center of the world of small-town and the founders believe that everyone should think that other state because the private sector is the heart of america. john: there is nothing small town about this new expensive medicare part d. he wrote an op-ed in the u.s. news report that it is the answer to health reform. this is another exploding entitlement reform that is wealthier than you are age group and you're giving us more money? >> you are certainly right. we are guilty of generational theft in america and i have always opposed unfunded entitlement expansions. and i have opposed it from the

beginning. but what it has a part in the do not is at the very least it has a market mechanism as opposed to just eurocrats setting prices by fiat. but every unfunded expansion is a mistake and we need to get back to budget honesty. john: it's good to hear you say that. thank you so much. it's an interesting idea moving the capital way from washington. but i don't know what good it would do to pay them, the lobbyist would move to the new capital. as congressman says it is the lobbyist that are the real problem. >> they are the royalty of washington washington dc. >> congress did it by passing on these laws? >> i will tell you that the real love is on washington dc. >> he says it's on wall street. >> is much more money there. what other politicians don't get is that no matter how much some wall street tycoon gets, he

can't force me to do anything. there are only two ways to do things in life. voluntarily or by force. washington is more dangerous because it can force people to give money and privileges. the process forces us to subsidize. try not paying your taxes. they will eventually show up at your doorstep and if you don't pay they will put you in jail. i don't really care if will smith puts his son and his movie or if drew barrymore as the data was a famous actor and that's why she was in the movie et. people volunteer to give money to drew barrymore and will smith. i get it. the government is forced and that's why it's evil and get even more special privileges to the people behind the velvet rope. contributors and their cronies

and another reason to shrink to $3.5 trillion deal that is washington. that is our show and we will see ckillway, thank you for watching.nk you i'm chris wallace. three years out sparks are already flying in the 2016 race for president. leading operatives on the left and right are working to derail potential frontrunners. >> either the governor knew and is lying or he's the most inept, incompetent chief executive. god help us if he were to become president. >> we'll get into it with ohio governor ted strickland and gop strategist karl rove. then another obamacare delay continues the controversial practice. raising the questions whether the