>> is everything illegal in america today? >> wait, wait, i give it to you. we could get in trouble. it is six or 7 and enough to scare the crap out of you. the police came after the grocery store? it seems like they thought we had cocaine in the papaias. most american support laws against prostitution, but what if it were legal? what if drugs were legal and not here in america. politicians pass more rules. >> over my shoulder what will they find illegal.

you have no idea what you are up against. show me the man and i will show you the crime. you can find three felonies. that is an understatement and in america these days, everything is illegal. what is more american than opening a lemonade stand. would you like the lemonade. who is first? thank you so much. appreciate it. >> for years, kids set up stands like but today watch out, the police made bust you. >> i was like really scared. i didn't know it was going to happen. we were selling lemonade in our front yard three days and third day they shut us don. >> the mom heard them yelling. >> i could hear them girls you have to shut the lemonade stand down. >> it made me want to open my own stapped. will the police bust me.

>> there are so many vague laws that everybody could be caught up in it. >> harvelyglate it is what they add last year. it makes crim nams out of the all of us. >> every citizen could be shown to violate a regulation in these stacks. that's the danger to liberty. >> the police never told why they were shut down. >> my husband stopped to find out and the city official said really, they hut your lemonade stand down? >> she didn't know the law. >> the police chief was not aware of how it was made or what it was made with. we understand you guys are young, but you are breaking the law and we can't let you do it anymore. >> appleton, wisconsin shut down these girls lemonade.

and in texas you need it to sell. >>icate lin sold girl scout cookies and the city sent them a letter and ordering them to stop. >> come on, it is girl scout. >> they ran afoul of laws they didn't know existed. >> not only to people like you who are not lawyers, but to me like me am a lawyer. >> it is incomp prehensible to me. even the police don't understand. the roberts' kid's lemonade stand. but. >> two officers the previous day bought it and tipped them. and they are accused of breaking the nuisance and property maintenance ordinance. his crime is his tree in the yard. >> if you don't remove the tree you will be fined $2000

or face imprisonment. you bought it because of the tree. >> yes. >> it turned out it was not on the planning and development services list was approved list. odd, because there is a bunch of them in the area. you point it out to the authorities. they said we'll site them as well >> stephanie and chuck were fined for holding bible studies in there home. you need a conditional youth perm mitt cup. >> it goes down the road of traffic studies and earthquake studies and land studies and this is 10s of thousands of dollars. >> how many people make for a meeting. and the code enforcer and boss from the planning. said more than three. >> you have more than three kids. >> i have five. famous people accused of fighting the law can afford

the expensive lawyers and get them reduced sentences or acquittal wharks if you are ordinary businessman. watch out, you could go to jail for years. and we didn't feed the lobster. >> he used to import sea food and authorities said you are in trouble. >> i did it cleared customs and fda and bring the lobster tails in and sold them. no one in the government had a problem until they walked up on the dock and said don't off load the lobster. stop unload put them back. >> we put them back and wondered what happened? >> they didn't know the answer. >> we know not to murder or steal. that is old-fashioned and now the laws are much more technical and vague. >> the government said he broke four obcure regulations

that are on the book in honduras. that said they had to be packaged in 45 boxes. >> everybody was using plastic bags. >> i start in 1986 and always did it the same way. >> even in honduras said you got it wrong. >> it doesn't matter. >> 7:30 in the morning there is six or seven black vans and f.b.i. and i.r.s.. and national marine fishery service and customs and 33 of them on my deck with guns. >> that was the beginning of the nightmare. >> you were sentenced to? >> eight year one month. >> that's right, eight year in a month. >> maybe he was a repeat offender? >> worst i had was a speeding ticket. >> he served six years in jail. what'sed happened to your business? >> i went broke. >> what happened to your

family? >> they went broke. they broke up . my kids are back home with their mother and that's the story. >> i assume these attorney's general and state attorneys are not evil. they are ambitious and want to make a name for themselves. but not really hurt people who did not do nasty thingings. >> there is a lot of fanatics. >> eliot spitser and rudy guiliani won high office by wracking up impress conviction records . >> they will comb the books and find something. >> this could happen to you. they can take any law that you broke and take you to trial and whether you win or lose, you will lose, by the time you are done fighting it, you are broke. >> the government never goes broke. >> they would have spent a

million taxpayer. >> they spent five million. >> the amount of money bankrupts. >> i had clients who spent 10 million. >> i cannot imagine how much they spent prosecuting my husband. >> the feds tried jack and lost, but instead of apologizing for getting it wrong, they threatened to fine him $37,000 a day. what terrible crime did jack and jill commit? >> trying to build a house on their own property. >> the county gave you permission to build. >> they inspected the foundation and approved. >> but a government owned drain age dish was clogged with logs. >> they told my husband. we are backed up. if you can clean the ditch do it. he used his back hoeand

removed huge dogs and the water poured off of the lane and we were sighted a felony for cleaning the ditch. >> what? >> a felony charge. it gave the property appearance of being a wet land. state government flood your property and the federal government charges you for building on a wet land. >> jack had to go deep down and he was not finding water. >> he was down 8 feet and could not find a water table. >> the jury cleared jack of all charges. >> we won. but after we were home for a month maybe, the army corp of engineers and epa said how nice for you that you won in the criminal court, but we still feel it is a wet land and the decision made by the jury did not matter to them. and if you don't get off of

the property, we are going to fine you. wro what does that mean? 37,500 a day. they had to sell their home and they live now in a modified trailer. >> it has taken almost everything you have. >> i wouldn't live like that. >> their life savingings. >> we'll be bankrupt obviously. you have no idea what you are against and you don't know the power of the epa. >> they have all of the time and resources in the world. it is an implacable foewith unlimited budget and they come in. >> they come in and ruin lives. >> the government who is supposed to be by the people and for the people is sometimes against the people. people. >> up next, why i had to do this. >> wait, stop.

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when i'm on overtime. when i'm in over my head. when i have to be sharp... no matter how many time zones i've crossed. when i'm on my feet for hours. when it's game time. when the day's only half over but my energy is all gone. when i need the energy to start exercising. every day. every day. every day is a 5-hour energy day. 5-hour energy. every day. >> john: the fact that american police tell little kids they don't have the proper permits to do this, made me wonder, what does it take to open a lemonade stand legally in america. >> they directed me to this website. >> this is supposed to make life

simple. >> they make it easy, except, what? >> there was unintelligible questions. >> what is an assistant. >> an employee identification number. >> the government said i needed to take a 15 hour protection class to sell lemonade. >> i don't have a bicycle. >> and then an exam and wait weeks to find out if i passed. then i would buy a government approved fire extinguisher. it could take months, forget it. so i did it without a permit. max's lawyer gave me the okay. i didn't sell anything. i had to give every refunds. first, the customers thought it was crazy. many once had their own lemonade stands. >> did you have to get a

license? >> i'm in canada and i can't let you drink this. >> there are so many rules, i'm not allowed to sell this to you. >> i didn't have time to get all the permits. >> you didn't need any permit. >> that is how was once in the united states. >> back in the 1920s and you take a poor italian and he going out and buys a used car and paints the word taxi and he is in business. >> john: this old documentary he got his start driving a cab. >> i made about $125 a week. >> today he couldn't buy a cab unless he was millionaire. >> most cities to buy one of these medallions. no medallions, you are not legal. but they now cost million

dollars. >> very expensive. >> so expensive that only big companies can afford them. so these drivers are not entrepreneurs, they are employees. >> it's because of the medallion. >> the purpose of these licenses is to keep outsiders out the purpose of a license so they can charge higher prices. >> john: one of the few remaining places you can start a taxi business is washington, d.c. >> it's the last bastion of free entrepreneurs in america. >> john: this lobbyist wants to end that freedom. >> you have to regulate. >> john: he wants to bring the medallion rules to the washington, d.c. he wants to cut the taxi cars in half. >> there is too many taxicabs.

>> they don't think so. >> they like be allowed to work but the lobbyists convinced the d.c. councilman to sponsor his bill. >> we want to professionalize our taxicab system? >> we wanted want to make sure the customer has a good riding experience. >> john: that sounds good but regulations are in the books subject to every driver to petty harassment. still at least in washington, d.c., open entry rules allow them to enter the business. >> washington, d.c. is the only major city in america that allows open entry. isn't that good for poor people? >> no, it's not. a medal yon system is what is needed. >> john: that squeezes newcomers out? >> and they should be squeezed out. >> john: why? >> because this is a regulated

industry. >> john: how much do you get paid lobby for this. >> my right is $775 an hour. >> i can't blame him, but don't husband 80 me. >> john: so you are paid by the taxi king, jerry schaffer. >> i'm being paid not him. >> john: keep the little guys out. >> kings, queens and jacks. >> poor folks pay lobbyists. if he gets his regulation, poor people won't be taxi entrepreneurs. >> only a few will be able to afford it. >> john: washington has been an open place for taxi to become a taxi driver so why monkey with it. >> folks have different

legislation, our charge is to implement it. >> john: how many laws have you gotten past? >> very active. >> john: ever repeal any. >> no, we haven't appealed any. >> john: it makes it much harder to be an i habe a cohd. i toog nyguil bud i'm stild stubbed up. [ male announcer ] truth is, nyquil doesn't un-stuff your nose. really? [ male announcer ] alka-seltzer plus liquid gels fights your worst cold symptoms, plus it relieves your stuffy nose. [ deep breath ] thank you! that's the cold truth!

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6. >> john: put aside what you eat. it turns out, no. some towns ban meals. one banned all fast food restaurants. they want to limit the salt i eat. if you sell certain things at

the food police disapprove of, you better watch out. >> there was lookout banging on the back gate. >> john: not long ago, federal and state officials raided a food co-opt in los angeles. >> were you drawing guns. >> they searched me. they thought we had cocaine in the fruit. >> their crime was selling milk that hadn't been pasture turized >> they also raided sharon's farm which supplies rawsome with the natural food. >> these people come and rip my house apart. they took me down to the county jail, booked me. like i was a criminal. >> they were charged with six felonies. they could go to jail all because health officials say raw

milk can be down right dangerous. >> john: it can. unpasture used means it's not heated and could have salmonella but raw food buyers say this. >> it's pure and healthy and makes me feel good. >> john: that is ridiculous. but don't people have a right to be ridiculous. >> this is america. how are you going to tell me what i should and shouldn't eat. i eat lots of dove bars and i also eat chicken. they say it causes lots of illness and many deaths. we don't ban chicken. >> when the government gets between my lips and throat, that is an invasion. >> why do you want to drink raw milk? >> i think it's good for me.

>> john: most states ban the sairls sale of raw milk just like unlicensed lemonade stands. my lawyer told me if no one drinks it and i don't make any money, that is probably legal. >> it indicates the prejudice against terrible business people. anyone who is this s is in business is a cheater. >> john: cdc says hundreds have gotten sick from raw milk? >> more have drowned in backyard swimming pools. ultimately you and i should be able to choose our risk. i think eating mountain dew is risky but i'm not asking for a government telling you can't do it. >> they have koult elevated 500

acres and more and more rules. >> every day, i look over my shoulder, what are they going to find illegal. >> john:. >> you can go into the woods and put a deer prominently and take it around in the afternoon sun and take it home and string and feed to it your children. that is being a great american. >> but if i take one lamb or one pig and get all the neighbors together and we have a community kill them and one neighbor pays me a criminal i'm a criminal. >> john: we need government to protect us? >> if that is what you think, go ask for government protection but allow my customers and me who don't have faith in the

government, let us opt out. it's freedom of choice should be important as the freedom to worship and speak and own a gun. >> john: what about the freedom public officials doing public work? coming up, in america these days you never know what is legal. can police legally arrest you ohhh my head, ohhh. [ speaking in japanese ] yeah, do you have anything for a headache... like excedrin, ohhh, bayer aspirin... ohh, no no no. i'm not having a heart attack, it's my head. no, bayer advanced aspirin, this is made for pain. [ male announcer ] bayer advanced aspirin has microparticles, enters the bloodstream fast, and safely rushes extra strength relief to the sight of your tough pain. feel better? yeah...thanks for the tip! [ male announcer ] for fast powerful pain relief,

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s a win for rick santorum in kansas. santorum getting 51 percent of the vote in kansas and 33 of the sphates 40 delegates. front runner mitt romney picking up 7 in wyoming. he had victsry virgin island and guam and. police in washington state arrested a man accused of stabbing a judge and shooting a sheriff's deputy. 34 year old suspect steven cravis managed to get away. she didn't know what happened. she later contacted police. why and deputy are out of the hospital and recovering tont. i am patti ann brown and back

to john stossel. for all of the latest headline log on to fox news.com. governms thousands of new laws ever year. the feds added 80,000 pages of laws. and state and local laws we're drowning in rules. >> this could lead to the police locking me up. given the police have the power to lock me up, or shoot me, it's important that we be able to keep an eye on them. >> fortunately that is easier today even our phones have cameras and camera is a powerful tool, watching the watcher. >> you are going away. >> the problem is that often the watchmen don't want to be watched. >> a highway patrol told pete stop your rv.

pete is an activist to that likes to videotape encounters with authorities. >> turn that camera off, please. >> how come? >> turn it off for me. >> he had broken no traffic laws but he was suspicion of his big trailer with new hampshire plates. he filmed the encounter. i would like to keep everybody accountable and the police officer didn't like that. another arrived and said -- >> i'm not turning it off. >> you are going to jail. >> the cops grabbed his camera and arrested him and his friend. >> they held us in jail. >> after 12 hours the police let them go. >> they charged me with possession of a beer because there was one opened beer. they nothing else to stick on me. >> they couldn't charge him with

filming the police because that is legal. just outside my office a cop claimed a bicyclist rolled in to him on purpose and the video showed up and showed the officer was the aggressor. that cop was eventually fired. maybe video like this is why some don't want to be filmed. >> i'm recording what you are doing. >> this is my yard. >> in rochester new york, when he heard a driver stopping outside of the house. she went out to film the encounter. one officer didn't like that. >> i'm allowed to stand in my yard. >> i was in cotton pajamas. i don't think there is any faith. >> all i have camera and i'm wearing nothing. >> it does not matter.

>> you are going to jail. >> i don't. >> understand the officers took her to jail and charged her obstructing governmentalings. >> did i nothing. >> i think the young police officer is high on his power. >> high on his power is a little harsh. he is doing his job. >> no, it's not his job to take people from their own property and put them in jail. >> john: a month later, emily put the video online. it was viewed thousands of times some viewers criticized the police. >> john: you post it on youtube and they come back. >> in uniform, four officers. >> police showed up outside a meeting and started writing tickets for parking violations, like parking 12 inches away from the curb.

>> her friend taped that. >> it's 12 inches from the curb. >> the media picked up on the story, police chief said officers' actions were inappropriate. charges were dropped but no officer was ever punished. they never are. even when they arrest news men. just ask. tried to film a police pursuit. >> because it's an act of seeing and you are leaving. go away. >> john: he went away. he moved across the street. then the officer drove up to him there. >> put it down. put it down. >> john: they charged phil with obstructing government. >> did you obstruct the government. >> absolutely not. i was probably 1,000 feet away from the officers. >> charges were dropped, the officer was never punished.

none of the officers would talk to us. head of one police union, sent us a comment. >> some is a serious safety issue. i am afraid terrible something will happen. >> opposite is true,. >> john: this hijacker rammed a cop car. the officers shot limb and exonerated from murder because he acted in self-defense. some officers understand it's just part of a job to be filmed. >> so let's give three cheers for the officer from oceanside, california. it's refreshing to hear an officer. my badge number 1093, god bless

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oh, wow. that's so cool! yeah, that was awesome! [ cheering ] [ tom ] i wanna see that again. ♪ >> john: lots of people in jails are here for drug use. people that make the law, many admit they use drugs. >> which are you ready to admit using marijuana in the past? >> the audience applause. >> i didn't inhale. >> i inhaled frequently. that was the point. >> everyone laughed. but the same politicians oversee a system that does this.

>> drug raids happen in america more than a hundred times every day. neil once led the raids. >> you have locked up hundreds of people for drugs? >> absolutely. >> john: you feel good about it? >> we really thought these drugs made people evil. >> john: but ten years ago, he decided drugs do less harm to americans than the drug war? >> drugs are and can be problematic but the policies we have in place to prohibit their use are ten times more problematic. >> john: drug raids as changed. s.w.a.t. team broke into this family's house. shot their dog. once inside they didn't find any drugs. the owner was charged with possessing drug paraphernalia. >> we just end up with dogs

being shot but kids being shot. we end up with search warrants being served on the wrong home. innocent people on the other side of the door thinking they are protecting their home. >> we should be kicking down more doors. >> paul was a white house drug czar. >> they are not kicking the door koor if somebody is smoking marijuana but they are kicking the door for a violent person. >> sometimes they terrorize people? >> because the accident happened should not be a reason to do away with the program. >> it didn't stop drug use but it created violence. >> tens of thousands of people are dying. >> john: because they get high on drugs about but because something is illegal it's sold on the black market. drug dealers can't call the cops if someone tries to steal their

supply so they arm theirselves to the teeth. >> people get hurt. >> john: especially kids. drug gangs look for new recruits >> they recruit better than fortune 500 companies. >> he demonstrate how they recruit kids. >> look what i got? wouldn't you like a pair of these. come back and show me again. >> they come back and you are looking good, man. wouldn't you be able to buy a pair of them every week. this is what you could be. >> john: few days later the dealer sees the kid again. >> you owe me when you offered me sneakers, you got my $120, oh you don't. here you hold for me. that is all you have to do. you get to keep the sneakers, i

got you. if drugs were legal people would assume there would be more than that. >> it is the policy of prohibition that causes the environment. we don't have the kids on corner fifth of jack dan will itself. >> sewed by businesses and safe businesses, there is no violence here because this is legal but there used to be violence in places like this. violent crime is why america ended 90 years of alcohol prohibition. >> we created organized crime. it organized well before prohibition. >> john: here is the murder rate about 80 years ago, it rose when alcohol was banned and dropped when it was legal again. >> if we want to do away with drug laws and say let adults do

what they do, we know statistically the drug usage numbers are going to skyrocket. >> john: but we don't know that. they would think drug abuse would be rampant. portugal did he criminalized all drugs and the number of abusers did not skyrocket. >> people talk about portugal as a success, it's actually a blatant failure. >> john: we went to portugal. he is just wrong. this man is portugal's drug czar 15 years ago, hair win users shot up on the streets and instead of doing what we've done they tried something different. they decriminalized every drug. crack, heroin, you name it. >> it's legalization. we have most drug use in the

world. >> it's treated like a parking ticket. people caught with drugs this man found with hash get a slap on the wrist. when the law passed. stoned people ran wild in the streets taking heroin and crack? this woman served in the parliament. >> they take more responsible attitude toward drugs. >> john: despite the freedom. independent studies found that the number of people that regularly do drugs stayed about the same. more importantly.... >> numbers of addiction decreased a lot. >> this woman was openly smoking a joint near police officers. but we saw more public drinking than drug use. drug abuse is down say authorities and drug crime is down. >> at first this police

inspector had doubts about the law but they say it works. >> and teen drug use is down. >> it brought peace to the debate. >> john: but in america the drug war rages on. >> coming up, another war against prostitution. >> we don't sell access to the intimate self. it creates the idea that human beings are no better than this. >> but the sex workers is saying w look! the phillips' lady!

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>> john: in these piles of laws, one law that most agree on.

the ban on prostitution. sex is okay, money is okay, but sex for money, that is forbidden >> seven women arrested and charged with soliciting prostitution. >> women hide their faces. >> tv reporters treat prostitution like most other crimes. >> we have exclusive pictures as vice cops sent set up a sting. cops posing as johns ealtdz lured five women to the hotel. >> john: even using the yellow pages. think about that. it wasn't difficult for the police to discover the lawbreakers. the yellow pages in my town has 15 pages of so-called escort services. police ignore 90% of it. when they do make busts the implication the police saved the prostitute. >> jail may be the safety place

they have ever been. >> john: jail is the safest place? i doubt that. >> more importantly, where sex work is legal there is little danger. here in nevada, for example. brooke says sex work is like any other sales job. >> we are entrepreneurs and independent contractors just like any other business. >> she works at the bunny ranch, one of 28 legal brothels in america. >> john: you are pimp. you are exploiting? >> i have a license to do this. 500 women rent out his brothels. >> to be bought and sold.

>> wait a second. don't you feel demeaned? >> not at all. >> the u.s. state department says selling sex for money inherently demeaning. >> sex is supposed to spontaneous. >> who made the sex laws. >> you do it for money. >> if you model for money. >> sex is more intimate. >> you are still showing your body. you are exploiting yourself. >> i choose to do this. this is what i want to do. >> i assume you had no other options. >> i had several options. before i can this i had a nice paying job. >> these girls can go out dates and give up sex and it's fine. but if guy leaves a hundred dollar bill on the dresser, is something wrong with that? >> it's not that complicated to appreciate why we don't want to legalize proog is. >> i put to it former prosecutor? >> we don't sell access to the

intimate self. it creates the idea that human beings are no better than slavery. slavery is against the constitution. we find it. >> john: but that is involuntarily, that is forced. >> prostitution is very close to slavery. it's inconsistent with what freedom means to subject humans to market forces. >> john: you lost me there. humans are subjected to market forces all the time. ever see a fashion show? a professional sports draft or a boxing match. >> two people could beat each other up in boxing ring, why can't the girls have sex for money. >> sex is just a job, some better some others. >> a girl at mcdonald's doesn't love make goburgers. >> candy dropped out of a college because she wanted to do sex work.

>> if i don't like somebody, i don't have to be with them. >> nevada has it right, not all of nevada. in las vegas, it's illegal. >> they have lots of diseases, two million property thefts last year. prohibition does not work. if you want disease and you want money going to criminals, keep it illegal. by keeping this illegal you kill people. people don't get aids tests. they are afraid to report crimes to the police. in nevada, in parts where it's legal, there is no crime. >> oh, please. you can't. >> they do engage it's under ground. >> so people rob banks, too. we can't regulate. >> stealing money from people. this is consensual, there is a difference. >> people will want to do things that are harmful to them. >> john: i wish you could talk

to the women from the bunny ranch. >> i would be like, i could save you. >> john: the sex workers listened to her comments. >> and they joined the conversation. >> they work in a legal place. they say it's great. >> we like it. if it's your own choice. >> i am happy that you are happy. but the fact that you are having a good time is not an excuse to ignore the harm. tell me why? >> it isn't about you. >> but nothing but happy. i believe the majority of prostitute women suffer. i i compromise your freedom. >> so you want to tell everybody in the world what they can do with their own bodies.

>> john: senate majority leader agrees. >> the time coming to outlaw prostitution. >> because it's sex. >> relax, just sex. >> even if you support the laws against sex workers, do we need all these laws? so many that no one understands them? so many that the government admits it can't count them all. no, let's get rid of some of no, let's get rid of some of these laws. [ male announcer ] this is lawn ranger -- eden prairie, minnesota. in here, the landscaping business grows with snow. to keep big winter job on track, at&t provided a mobile solution that lets everyone from field workers to accounting, initiate, bill, and track work in real time. you can't live under a dome in minnesota, that's why there's guys like me. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better.

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