John we had to free our minds to get these concepts. But on to tonights topic. Is the United States about to fall as rome did . It is a barbarian city. Is this our future . First we hear from a conservative, a historian, and a libertarian. We have some libertarians leading. This historian, carl richard, and matt kibbe fights the government. Matt, are we becoming rome . I think that we are. I think that the parallels are quite ominous. The expansion of foreign policy, the arrogance of executive power taking over our country. But i do think we have a chance to stop it. I believe that their similaritiesith the fall of rome and the republic they are in engagement of political leaders and so on. I sesome of that. John corruption, etc. . It is sort of under the table corruption. But it doesnt bother me as much as the over things. For instance, theoman constitution had a to perit limited to one year and people just kept voting for this unconstitutional leader. John now we have Congress Passing laws that havent read. Thats right, we had president s of both parties saying that i am not for certain about these laws. Taking property, selling it to someone else, and yet you can always find parallels. But the fact that we are meeting come i think it shows the antidote is coming about. We, the people, we have not gone the way at the romans did and they were not passive. And they may try to feed the us to the lions,but w believe in free enterprise. We are going to face the lions. [cheers] [applause] heers] [applause] john that is a happy thought. I wish that i were as optimistic as you are. But i fear that we are rome. How many of you think that we are goindown the tube how many think that we are in deep trouble . And how many think that we will turn it around . They cant both be true. But again, you are not in the audience. Because your libertarians, right . [laughter] john so Walking Around here people investing in goold, as a this and that, patronizing dead austrian communists. [laughter] john you have to understand why we get a reputation as wrong and different. Is this unfair . Is this fair . No. John com on, isnt is mostly badly dressed men . [laughter] john its people who care about numbers, ls about how they look the epitome of it. Is this unfair . That they look like geeks . Well, youre sounding like my opponents. You could describe our forefathers inhe same way and you of all people should know which should look at the substance. [cheers] [applause] john this is the optimism that makes america possible. When i look at your sideburns, and i think people would say that this is not a normal guy. [laughter] definitely guilty as charged. We are different because we have the looks. [laughter] [cheers] [applause] [laughter] [cheers] [applau] that but social awkwardness is not a sin in defense of liberty. John i am socially awkward as well. I overcome it if i have to. But what is it about many of the people who like to analyze the opposite . Is a personality type . Economists would argue that everything we do when we fight for freedom and show up at rallies, when we care about the future of ourcountry, economists will say that is irrational. The we happen to think it is the best thing to do because we care not only about our country, but her future, our kids future, that is not normal in this country. That is what we have to face. It is part of our culture and part of our entrepreneurs. That is what freedom is about. Hope to do it better next time. John well, we should talk about the perspective of the compari america to rome. What do you think . They have i debt and high valuation of currcy. The socalled silver coin is only 2 silver. That is how they devalued it. Charles john coming up, gladiators devalued currency. Otherwise, america is just too much like rome. [cheers] [applause] [cheers] [applause] john welcome back to freedom fest. Now, the welfare state. I didnt know that, buti came to this and the two people who educated me include charles murray, an author about the destructiveness of welfare. And there he i reread from the foundation fconomic educion. Lay, i learn from you that this begin about halfway through the roman empire. The government gave away the subsidized treatment halfprice. But the problem is they couldnt stop it there and later there was a man who ran for the office of the tribunal for the masses. And it was downhill from there. They gradually give stuff away with a steady increase. Including with other staples of the roman diet. John people would show up in this way . Yes, they had a test and they got away with it so that anyone could fill up and get this free stuff. And they decided that you had to be edited by the state. Well, not everybody, but they started Public Schools . Well, it was much later. Largely with homeschooling. In the firstpublic had was about 250 bc and they were not funded by the government. John and the grees actually mocked him for being backwards about that yes, of course they did last anywhere near as long. You have educated us about welfare and the handouts. Do you see parallels with rome . Yes, if you take a look at Roman Society that started to ditate, it is not just because of theewelfare state and the people on the bottom, it is also because the people on the top who isolated lives from the rest. I find parallels in te United States versus rome very interesting. s. John we have a lot of unintended consequences. We just get rid of it . Youre pretty hardcore, i assume. Should america get rid of all handouts . [cheers] [applause] john what woul happen the first time somebody did this . They say charity. Charles mrray, what is your answer . Well, i think in fact if we g rid of the entire welfare state, that the ability of the wealthy society to deal with the problems would work. I ont think it is witn the realm of possibility for an advanced society with as much wealth to ever do that politically. I think that libertarians will have to strike a grand compromise. In affecting the we will give you a big spending if you will giveus freedom from interference. I would say use of guaranteed basic income for everyone under 21 years old and known bank account, an let people take their lives back into their own hands. They will have the wherewithal at they can deal with this and ifhey do not do it, they will have to talk with friends and Area Neighbors and churches and in the community and they want to make their case. I think that is the better way to go. Hn you wrote a book about this. It is clled in our hands. His better book is in pursuit of happiness and better government. So youre telling me that the social workers, the New York Times reporter will go on and say that youre going to let this woman children starve . Its not their fault and we have a whole new program. Heres what youre going to have. Youre going to have someone who spends it up in the first two weeks and then theyd are going to say that gee, we dont have any money. You know, he has to go to the people the people and say that i really need help and then saying that there and let you down. We will introduce once agn the kinds of human connections that are the only way to this. Uniteds defense never let people die othe streets. Now we have bureaucrats that cannot make the distinction between someone who needs a kk in the pants and someone who needs a pat on the back. We will put these in the back of human relationships, whereby you can apply this stigma come all the rest which can make the problems solvable. John there were these mutual aid societies everywhere. It is not thebusiness of the government. This was the case in most of roman history, everybody could line up to these things which contributed to the ultimate bankruptcy. John look at how the poverty line drops but then the wine was just as sharp. People were lifting themlves out of poverty. Government kept improving and then stopped. The great Untold Stories ttat there was a miracle at the end of worldld war ii in the early 1960s. It has kept them about 40 below the poverty line to about 20 . It continues to go down for a couple of years and it flattens out. We change the rules of the game that made it profitable for low income people, and the it seeme like you know, it worked for a while and then we realized it didnt. The politiciansay the fare and that is exactly what has happened. Those who did notther, it puts a big smile on my face. He was so warm and loving. He died from melanoma when he was 31. Every hour someone dies from melanoma. It doesnt have to be someone you love. John welcome back to this special edition of stossel. We are in lasvegas for freedom fest. Most people here are libertrtarns and we want to shrink government. We dont like taxes. We need national deense and pollution control rules. There are some things that most of us say government must do. I see why. It is tough. Our taxes always seem to go up. Grover norquist, who is head of americans for tax reform persuaded politicians never raise taes. And steve moore is with us from the wall street journal. So rome had high tax rates . Not always. Efforts were about 400 years they had no real direct internal taxes. Because they looted their neighbors. John we are not advocating that. [laughter] even that wasnt enough. So they had dramatically higher taxes. Taxes started with tariffs. Constantine had the first one. Property taxes, people were actually abandoning their property. Things got towards the end, very rough and its a part of why things did not work. One penalty of eing sold and slavery. Or killed. That is what they do and the modernday irs. The only way they would get it was to sell into slavery to get currency. John by 1 was the highest income tax. Over is exactly right. They kept collecting more and more money in the outlying areas and there wassa massive revolt. That is happening in ameri today. People are sick and tired of seeing their tax dollars in washington. That is one o the reasons that is the great thing about america. The federal government did not create this with the state. Reaction that they had to collecting the taxes was tax farmers. It was so bad that in one revolt john we do not advocate this on the show. It was a 40 year war. But it wa clearly a serious tax revolt. To your point, when you asked me what 1 was, when we created the federal income tax back in 1915, the top income tax rate went o 7 . Within 10 years they went from 7 t 70 that is why i have always believed that steve forbes had it right. We ought to go back with all the deductions and loopholes and make it as simple as possible. But dont create all of these special interest groups. The people most opposed to the flat tax, it is people who are against it and probably from washingt. The bricks in london were paying 20 . It is expensive. I like to percent rather than 18 . [applause] john to be clear, we are at 40 for state and local. That is right, we function fairly well beyond that. The reason the british attacks in 20 is because they are running an empire the one comi up, when government cant raise taxes anymore. They find other ays, like devaluing the currency. But it didnt work out so well for rome. That is coming up next john welcome back to the freedom fest conference. The worlds biggest gathering of people even many politicians are made mad by libertarians. Politicians ha found sneaky ways to do spending. Roman mperors molests over and coins, and that cost money. A bushel of wheat that cost the roman dollars cost 120,000. Then powell and Jeffrey Tucker join the currency debate thing that we better be ccreful that the american dollar is already going down. What do you think . I fear that inflation ii low. Are you kidding me . Grandmothers are rolling over in eir graves rht now. Any young person has heard someone say i remember when not cost a nickel. The currency has lost its value. It tkes 23 to buy today what 1 dollar could back in 1913. John and had to go all the way back, paul krugman would tell you that inflation is 2 . But this isnt a big mystery. They started paying interest on the extra reserves. If that actually gets went out, then we will see higher prices. It is a seris issue. You can get a return on your money anymore for savings. That is precisely what we are discouraging. John lets go back to the rome parallel. They traded and they prospered and they did what most politicians do. He empire kept expanding an eventually run 180 day ahead the maximum extent of the empire so over time this was the downfall of rome. A Big Government destroying rome. Th barbarians came as the government was collapsing over its own weight. John with the next emperor, this is 85 and all the way down it ended up being 15 thousands. The had this kind of cartel arrangement and we see the quality diminish over 100 years. John a lot of people get worked up because they say by and large america is doing pretty well. Pple thought the Real Estate Market are doing pretty well. Especially with a government that refuses to fund itself. So as long as the fed is there with its unlimited credit card to always pay for everything, there is no default or. When inflation comes, then what will the government do . Ronin issued wage and price controls. The United States government s are redundant. A decade of high inflation in the 1970s and price control under nixon. Nixon was kind of a softy compared to the roman emperors. He made it punishable by deth. The products not coming together. John and they would let you change jobs either. Constantine said anyone who violates this may be bound with chains and reduced to eight servitude condition. Some people are eager to turn a profit even on blessings from the gods. It urges us to set a limit. I hate when people use greed to explain something. It is constant and always there. It doesnt work like that. John one solutn some people say what the government plying with the currency. It didnt really work. The problem is for the libertarian audience, how many you own gold . Either actual gold or investment. Just about everybody. We wouldnt have the government involved at all. Gold has fallenin some of the people lost a lot of money. Maybe this is advice to. It is two separate things here along with speculation. It doesnt mean that you are recommending this as an investment. It entirely depends on what the expectations of the future. Everyone else has a standard. John what bout big coins . It was one in a long succession. John and equates the use those of you that dont know, an internet form of currency that is limiting protection against devaluing dollars. It is a currency for the digital age. The most plausible things will they allow me to extend of anyone in the world in Central Africa even if you dont have the ability to exchange the money. No, that wont happen. John on thatote, thank you both. Coming up, roman emperors spent big bucks on stadiums like the coliseum, sometimes fighting gladder aiders and sometimes fighting animals. There are american equivalents to that as well. To that as well. We will have that at a dry cleaner, to that as well. We will have that we replaced people with a machine. What . Customers didt like it. So why do banks do it . Hello . Hello . if your bankoesnt let you talk to a real person 24 7, you need an ly. Hello . Ally bank. Your money needs an ally. John welcome back to freedom fest. The question are we rome . Being on the edge of collapse. Trying to keep people happy, it offers distractions and bribes. One fellow called it cheerier races or gladiators ghting to the death. Now, america doesnt allow that y. But jc bradbury says that sometimes it takes the form of sports stadiums. Well, its like we need people to collect teams together to keep us happy. But we are all going to be richer. John and say that they pay o thselves, but they dont. Time after time they said that they would get revenue and it didnt happen. I tink the thing hat it has been studied so much. John economist like you have explainedey have eight home gama year. That is not a positive comment. That is saying that they are being placated. I think that sports are popular anything, why dont i go ahead and support this. John lets go back to the rome parallel. Our stadms paled to what romans did. Were they keeping the people pacified because they were getting ticked off . It wasnt because they were ticked off, but some form of entertainment was used to distract us. I like football, really going to focus on that. Im not going to focus on the schools are the other things that may be going on. But it is certainly something that individuals can relate to. Its a positive thing for our community and that is why it is so popular with politicians spew and most gladiators were slaves, prisoners of war. 90 of tm survived the fight because it woud be expensive to the owner ofthis wave if they were killed. Yes, but you have to pay the owner o it is something that people enjoy and want th to see. So it is sort of a difference in the way that we view this than they were once viewed. John the arrogance of the emperors and priests. 169 bc. African lions and leopards, elephants were hunted down in a single today show. Tigers and crocodiles and drafts and hippopotamuses. The emperor would sometimes kill them himself. Only today we have club seats luxury boxes and e rest. But its definitely the same thing. This morning extravagant. John thank you both so much. We wi john is america wrong . No, thankfully we are not as bad. In a hundred different ways. Our taxes are actually higher than most, but we dont have slaves. We also dont kill people for sports. When we go to war, misguided or not, we do not conquer or plunder. When we win, we uually leave. Poor people live better than the emperors there. We have flush toilets, longer lives, painkillers, airconditioning. Our president s actually leave office voluntarily. Although our current president waste money on extravant travel, era was much worse. He ner wore the same clothes twice. From all corners of the world, that number could to file them. Elagabalus said that he made his favite senator a horse. As depicted here. You treat him as your peer. John even president obama wouldnt do that. [laughter] [applause] so arrogant as our politicians are, they were at least not emperors who like this tell ortiz and executed a senators wife who didnt show up. But it matters because umpires do crumble. Rome lasted the longest of all of them. It lasted less than 600 years than the spanish and as did the british. We lasted less than 300 years. We are doing better than alexander the great. His empire only lasted 300 years. But we have accomplished amazing things. Amazing prosperity. We just cant take it for granted because free and prosperous is not the natural state of things and in Human History it is rare. We are now starting to look a lot like rome and we oughtto worry abou that. That is our show, thank you for coming. We will see you next week. [applause] [applause] [cheers] [dave gentry] hello, im dave gentry. Welcome to small stocks and big money. [intro music] [intro music] [intro music] [intro music] [dave gentry] for twenty years redchip has been in the business of looking for emerging Growth Stocks before they show up on wall streets radar screen. Before we begin with our interviews today, a few updates. Document Security Systems received approval