this is, after all, the cato institute. and so this message will be, i think, affirming to you, but what i hope to suggest is you may not fully appreciate the reasons why government fails or the magnitude of the failure and how it might be, those failures might be remedied. that is to say most of the discussion about government failures are highly theoretical, rhetorical, deeply politically, philosophical level rather than at an analytical level based on empirical evidence. is and so that's, if i have a contribution to make to the people at cato, that may be to enrich that particular kind of evidence for conclusions that you probably have no need for -- [inaudible] about. i'm also delighted to be on a panel with wally olson with whom i've worked for, my god, it's almost 30 years. he edited a book to which i contributed way back in the 1980s. and also to be on a panel with arnold cling whose work i've respected for so long. so i begin with the notion of crisis and, of course, every book is trying to sell the idea that there'

liz: john allison, cato institute.t bankers in history. >>> no question number of lawsuits over patent infringement has been skyrocketing. last year 6,000 claims entered u.s. courts. some were legitimate but others made for folks looking for a quick settlement from a company. a new bill coming out seeks to limit the number of frivolous lawsuits. others are concerned that the new bill would endanger small businesses or individual inventories who have patents or about to file them. one of those concerned with the new bill, congressman dana rohrabacher, who joins us now. congressman, great to see you. thanks for coming in. you don't deny a lot of these lawsuits are frivolous, do you? >> i deny the word a lot. there are, large numbers of suits that are filed because megacorporations, multinational corporations, are more and more going to the tactic of trying to steal from the independent inventor rather than respect the rights that they have because they own the patent on their inventions. yeah, there are some scam artist

mitchell talks a little babout what the cato institute does.lk about the economic policy institute? guest: without about wages employment developing policies to help working people, the middle class. we have worked for a closely with the congressional progressive caucus on a budget that does some of the things that the callerds just now asked for that would reduce spending on defense, put more money into infrastructure more money into education, research, and the health of the american people and it would raise taxes on the very wealthy. we have a serious problem when all of the growth, virtually all of the growth of income since 2009 has gone to the top 1% of americans, and they have really have not been taxed on that income. a flat tax sound like a good idea, but when all of the income growth is going to a tiny slice of the american people, not to tax them with a progressive tax would be disastrous for the government and 40 quality. host: you talked about quite a few job initiatives, but i want to talk about job training in particular and get

it was called cato. and the two most famous lines in cato are: "'tis not in mortals to command success, but we'll do more, sempronius; we'll deserve it." washington must have been familiar with those lines, since it was his favorite play, and i think that's a key to a lot of washington's behavior and very waspy kinds of sentiments, i think. c-span: second american president on your list. >> guest: lincoln. this is not a startling list. i'm not going to pull out millard fillmore or chester arthur. lincoln because lincoln had to deal with the great sin that wasps committed, the great crime that wasps committed historically, which was slavery now, this was a crime, i think doubly so, in the first place because it is wrong and immoral to own slaves; in the second place, because it really is a violation of wasp approaches to politics. the best thing you can say in defense of wasps is that all the time there were slaves in this country or in the colonies, owned by wasps in most cases, there were also wasps, wh

a constitutional studies fellow at the cato institute explains. >> the government is instituted at the very beginning to provide for the general welfare. 101.ical theory congress has a pretty wide berth to spend money on defense. is the responsibility of leaders and department of defense to report to the secretary of defense what they need in the budget to be successful. >> we will put in a wish list. we really want to work on these things, these research projects. it will go to our navy and marine corps leadership and we will submit it and pushed onto the secretary of defense. once the secretary of defense has that, he looks at the army's wish list, the air force's wish list and a few other entities. they try to balance things out and then they send it up the hill to the president. the president says, i like it, i don't like it. approved, has been they will submitted to congress. year, theykes that are looking at it and reviewing it. congress will be satisfied and they will sign a bill. >> and 2011, congress passed the budget control act. we asked benjamin friedman, a research fellow

cato president, john elson said, not america either. that is where we were, maddi, people saying they don't buy it. a lot of people said been there, done that heard that. >> you know, i think that is the important points. when you look at conservatives who are skeb spectical of what government can to, this makes sense coming from you or more, but the progressive base is starting to doubt what the president is saying, that could could damning long-term for democrat party, these guys require a base that believes they can deliver on promises of bigger government, more services planned programs. it seems that president is intent on making sure it does not come true. neil: it is hard to win trust back. i am, john, because i'm old enough with richard nixon, his most die hard supporters suspected once one lie of revealed than another would follow suit. they stopped believing him, he never did get it back. >> i don't think you can win trust back with a series of what is obvious mised in. misinformation with an agenda attached. i almost never ag

we're joined by chris edwards with the cato institute. is there any branch of government up in your business more than the tsa? >> no, the tsa is extremely annoying, the aviation system is getting more and more congested, more and more americans are wasting more time in airports. it's a lot for the economy. and our individual freedom and frankly, the tsa does a mediocre job in terms of security performance, there are 16 airports in the united states that have been allowed to have private airport screening. those airports typically do better than the airports with government screening and many tasks over the years. i think we get less congestion and better security if we went through private screening, which is what most other high income nations do. >> chris, what's the difference between the private and government screening? do they have different tactics or a matter of a different response system and responsiveness of the people putting it together? >> well, one of the problems with government screening with the tsa is that they waste a

we're joined by chris edwards with the cato institute. is there any branch of government up in your business more than the tsa? >> no, the tsa is extremely annoying, the aviation system is getting more and more congested, more and more americans are wasting more time in airports. it's a lot for the economy. and our individual freedom and frankly, the tsa does a mediocre job in terms of security performance, there are 16 airports in the united states that have been allowed to have private airport screening. those airports typically do better than the airports with government screening and many tasks over the years. i think we get less congestion and better security if we went through private screening, which is what most other high income nations do. >> chris, what's the difference between the private and government screening? do they have different tactics or a matter of a different response system and responsiveness of the people putting it together? >> well, one of the problems with government screening with the tsa is that they waste a

it's a think tank like any othe think tank that the viewers may know of.s a think ta like any the cato institute, the brookings institution. we focus on state-level policy and we focus on things like and health care and educat uniquely and criminal justice. so for many years we have been working on finding ways to improve criminal justice in the state of texas to get better results and to spend less andsud improve public safety overall. we've been very successful, i'm happy to day. fed that has caused us to launch a national campaign based on the texas model of criminal justice. and that is what it is. our national campaign to getmod. conservative thinking people back to principles when it comes po.criminal justice policies. >> there are high-profile supporters were on board withile supp this. >> yes, we have statement of principles. people can find it at ournt of pr website.find o it has beenur signed by newt gingrich, grover norquist, bill bennett, jeb bush and americanni conservative over the last and several years. >> what are the principles that you're putting forth here when inpu

on the next "washington journal," creating jobs with brey and daniel mitchell of the cato institute. outlines options for the federal reserve to stabilize the economy and matthew at the wilson center discussions vladimir putin and the unrest in ukraine. and we'll take your calls and you can join the conversation at facebook and twitter. "washington journal" on c-span. at the white house, president obama awarded the table academy football team with the commander-in-chief trophy. he also spoke briefly from the rose garden. this is 10 minutes. >> ladies and gentlemen, the president of the united states. [applause] >> everybody, have a seat, have a seat. welcome to the white house. congratulations to the navy midshipmen. [applause] does this get old? >> never. >> no? okay. it's good to see coach ken again. and i want to recognize vice admiral mike miller for his service to the academy and to our country. this is the second time these seniors have come here to claim the commander-in-chief's trophy. if you guys have your punch cards with you, the next one is free. [laughter] i'm pretty sur

regulation as interference, and talk about it as a $169 billion hidden tax of that figure comes from the cato institute which has a slant on this. first of all when you think about it in an industry that generates about $2.7 trillion in revenue, that's a low rate of taxation. i would argue it is really more in the nature of an investment and a tax. and it's what makes the rest of the $2.7 trillion possible. this view of the antagonist has particularly been pervasive in health care. if you look briefly historically, teddy roosevelt first raised the issue of a national universal coverage plan in 1912 and its third party candidacy. he did not succeed. a few years later some of the states picked up the call. i know it's hard to read the details but on the left from 1918 was the pushback that talked about labors of socialistic attempt to take over our health care system. sound familiar almost 100 years later? in the 1940s harry truman proposed a similar plan. that was called socialized medicine. if you can see the puppeteer with the marionettes, is called socialized medicine and its it's inside a

dan mitchell, senior fellow at cato institute.ood to have you here. 10% of these multiemployer plans, pension plans for unions, of the 1500 total, 10% will run out of money in the near term, in the next few years. how big is this? how does it get fixed? are taxpayers on the hook? >> we already have a government department, pension benefit guaranty corporation, that exists to bailout and take over these underfunded and bankrupt pension plans almost all of which are associated with unionized plans. and according to the numbers on the pbgc website the unfunded liabilities is 10 of billions of dollars. so where is that going to come from? taxpayers unfortunately probably do have their necks on chopping block. gerri: dan, slight tweak to what you said there, my understanding these specific plans, this flavor of plan, is not supposed to be bankrolled by pgbc. it is not supposed to be bankrolled by taxpayers yet i certainly expect the queries, the requests, demands for money to start piling up. do you? >> well, you have the single employ

business and industry council and mark calabria, who joins us from the cato institute. let me kick off with you, alan. what is your take on the state of manufacturing? >> there are some very big problems with u.s. manufacturing, not only concerning manufacturing jobs which are obviously important because people who hold manufacturing jobs and have held manufacturing jobs, vote, but there's a big problem with manufacturing production also. if you don't have robust levels of manufacturing production, you will never get acceptable levels of manufacturing employment and we have not had strong levels of manufacturing production growth since the first half of this economic recovery ended. we had a deep dive during the recession, we had a nice snap back during the first half of the economic recovery but all of that momentum is basically gone. >> mark, you have a very interesting observation here that challenges that. how would you sum up where we are? >> first let's characterize separate manufacturing out from manufacturing jobs. before the recession, 2008, we were producing m

>> this has been a eye for cato market. i am not sure children have to leave the room.ghtening. people have been focused on biotech. actually consumer discretionary has been an area where you have the worst performance in the martha. some of those names particularly that have been hit very hard. a lot of investors made a mistake. at a move fromng small cap to large cap, growth of value of move toward quality but it really has been a one morebreak it >> question here and moving to an important matter -- are you advising our viewers that they should add to blue-chip positions this morning? we said all year you should be going on weakness. we still think the market will struggle in the few months. sentiment metrics are too strong. over the course of the year, though, i think you will see 1975 under s&p. >> what we do is we rip up the script when it is important. tobias levkovich with us this morning. where did you grow up? >> montrÉal, canada. >> erik schatzker with us. where did you grow up? >> toronto. >> and they are on speaking terms. but seriously, important news out

economics at johns hopkins university in baltimore the chairman of a hedge fund and a senior fellow at the cato institute he's an expert in currencies serving as the senior economist to reagan and congress as well as many other foreign countries his work has played an important role in establishing currency regimes in argentina. and bulgaria to name just a few countries. he was a proponent for a currency board in argentina in the one nine hundred ninety s. but they adopted a convert to build a system which failed catastrophic would ever need began a recent conversation with him asking what exactly happened in argentina that led to its failure. to original proposal that i made in one thousand nine hundred ninety was that they should have an orthodox currency board and what that means is you essentially. a foreign currency the argentine peso. would have cloned the in the united states dollar in this case now how do you do that with an orthodox board you fix exchange rate between the pace of and the us dollar you back any issue of pace one hundred percent with u.s. dollars and the currency is full

the cato institute is part of the koch brothers. >> david is on the board. >> they are big donors for lots of other big groups like the heritage foundation, americans for prosperity. i think that is an effective tactic for the left to run against. so many people are upset about big money in politics and the koch brothers are the biggest money. >> i love the language of kochtopus. right? kochtopia. i suppose kochtopus is as good a name as any. they funnel dark money all over the country in 2010 and 2012 elections and now their kochtopus money man is heading up another group and coming straight after me. you can name it. this guy works for koch -- >> i don't work for koch. >> no, but one can make this claim about the connections. the problem is if you get cancer treatment in new york, you're getting it from koch money. >> if you go to the theater. >> a lot of money to charity. i wonder if kochtopus is big and you're using it to smear, will the democrats soon have the mud back on them just because kochtopus is so big. >> back to the strategy question. without a doubt the 2012 election wa

the vice president of the economic policy institute and dan mitchell with the cato institute. daniel, a correspondent for fox.com will talk about what the fed might do to help stabilize the economy. matthew with the wilson center talks about president putin and the chance for civil war in ukraine. plus, your calls, tweets and facebook comments. live tomorrow morning and every morning at 7:00 a.m. on c-span. supreme court justice stephen breyer will talk about human rights with advocates and senior officials from the department of justice. an event cohosted by georgetown, the new york review of books and law.enter for the rule of we'll have live coverage starting at 4:00 eastern time on monday on c-span. finished al have qaeda in 2001. our general who was there -- all of us think back. when we were attacked on 9/11, 3000 americans died. more americans than died in pearl harbor. we had al qaeda and we had osama bin laden tracked in some mountains. we did not finish them off. then we let him escape over the other side of the mountain because we said, that is pakistani territory.

. >> we asked a research fellow in defense and homeland security studies at the cato institute to explain how the budget control act works. >> the law says thou shall not spend more than this amount for defense. and if you do, we will sequester, we will go across the board to every program equally and get you back to the cap level. so there's no way without changing the law that puts this, that you can spend more than that amount. you can pass an appropriation bill that spends more but then we're just going to sequester you back so you're right where you would have been even if you didn't have sequestration. >> if left in place, the sequestration cuts to the department of defense will have a dramatic and possibly irreversible effect on the military's ability to provide for national defense. >> in many cases when a sequestration comes in or a continuing resolution, it not only dramatically slows down the research, but it also in men cases may -- you may lose people. i mean brilliant people. people you don't get back again. they have to go away. and you may never get them back into your lab

you will also hear from dan mitchell of the cato institute.king about the federal reserve and banks from fox.com. and then we will talk about the latest when it comes to russia and the ukraine. all of that, plus a look at the papers in your phone calls as well when "washington journal" comes her way tomorrow at 7 a.m. we will see you then. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014] ♪ >> today on c-span, former british defense minister liam fox talking about government surveillance programs and privacy issues, followed by assistant secretary of state p.j. crowley and the importance of diplomacy. later, a look at immigration and the hispanic community, chances for legislation in congress, and the obama administration's deportation policy. >> one of the real signatures of this boom is how quickly it has moved. there is some good about that, but there is also some bad. we were 10 years into this room before regulators and the companies themselves started asking tough questions t

don't know if they actually knew about it but that doesn't really matter because julian sanchez of the cato institute made a really good point for the guardian and said that now they could use it now they can go back because edward snowden revealed that they were trying to crack and christian but he also revealed that they were collecting communications that were encrypted because they thought it might be something that would be useful for later so now they can use this bug if they wanted to and they could go into it and try to get the price. encryption keys and then maybe they could get to the data and i think that's a big deal and is a big deal it also kind of shows that the n.s.a. even exploiting this flaw maybe they don't really have americans interests of safety and security at heart kevin but from one end you have people saying that this isn't a pop apocalyptic bug it's going to you know take down the internet others saying that it's really no big deal i mean what do you think the extent of the danger really is here well here's the major thing president obama has said that it's wrong

the question is, can you define -- [inaudible] and the comment is i would like to invite cato and all the community of research to introduce a new paradigm, because it might help to see more about how, what i call high politics, how people we don't see intervening in our daily assets imposed many things we cannot understand until we investigate this domain. and i'm open to talk about it. >> i think you have to read the book. i've laid out there as best i can. so i can't respond more than that. >> we have time for one more question. >> i want to follow up or ask both speakers something arnold sort of suggested, that is, he raised the question of the independence of evaluative efforts. he doesn't expect -- >> speak up. >> arnold mentioned he didn't expect government evaluators would give us an independent evaluation of government programs. an interesting thing, when you get the real expansion of the social side of domestic spending with regard to society come they also set up and funded a think tank to do the evaluation which was the urban institute. subsequently there's been a lot of c