>> were you goofing off before sitting around drinking coffee? >> occasionally. >> but the left hate privatization. >> they don't want to pay for the things the roads, the dams and the rivers. >> yes, we do. we just want the money spent well. >> privatize the police department, privatize everything. >> privatize everything. that is our show tonight. >> oo now john stossel. >> privatize erg. may -- everything. maybe i got carried away. there are some things government. ought to do. most are listed in the year of the constitution. this is the spin. this makes it clear there's not much the government should do. this is mostly about what the federal government should not do. the founders were right. most things work better. most have freedom of choice. that happens with we leave things in their hands. what should be privatized? lynn gilroy studies that. what for example? >> things like changing the oil in vehicles, many cities are paying public employees lavish salaries and functions that you can compete out to the private sector. why can can't the government employees do it cheaper better? >> it is a great question. in the public sector you have a monopoly. when you do you don't have competition. you don't have any pressure on prices. when you go to a competitive business system you have a private sector competing to provide services for you what you tend to do is drive down costs and reduce service quality. when you do this process right that's the outcome you are going to get lower costs better quality. >> you published the privatization report. one of the things in in country don't realize there are 17 states that since prohibition own and operate liquor or wholesale operation. you deliver liquor to stores. >> after prohibition dangerous drugs and kids get it and there will be drunk driving accidents. what you tend to see today -- >> you see the same with marijuana legalization. >> what is interesting about that you don't have any states clamm clamoring to operate it themselves. washington state had its own state run wholesale and retail monopoly with lick tore. vot -- liquor. we have been through it a year now and we look at the results. >> critics say kids will drink we will see more car accidents. >> that has not panned out. you have fewer dui incidents accidents and arrests. you have under aged drinking that hasn't changed. the sky didn't fall. >> california hired a company to run public parks. the private sector is charging the same fee the state was charging to let people in and do camping fees and things like that. they are paying the states for the privilege of doing that. >> the state which was losing money and making money. but this is what people would say this can't be. the company says this is a prophet. >> you have a company making a profit and they are saving you money statement. that gives you a sense of how inee fish shentd it can be. >> rahm emanuel lowered recycling costs by causing competition between government workers and private workers. >> he allowed the public employees and private sector to compete against each other. in chicago mayor emanuel broke up the city into different zones and kept the public sector with some of them and bid out the recycling in other parts. you had a real world competitive test game. what happened is again competition just by bringing in the private sector the public employees realized they were going to have to step up their game because that is encroachment in their turf so to speak. what happened? over six months they saved $2 million after just the first six months. this is reported by the mayor's office and they reduced the overall cost by 35 percent over a six-months period. that prompted the administration to decide to look at other opportunities to apply that managed competition model. >> this is happening all over space flight they are doing it for much less. paving streets. louisiana and hospitals. >> they are getting approved patient outcomes. >> private operators are killing them for neglect. >> getting better preventative carry duesing waits for prescriptions and appointments and things like that. they have seen a traumatic turn around. >> what woke me up to the benefits of private companies running by government services was a report i did years ago with the jersey city water department. >> jersey city new jersey dgot o bad they didn't taste good. they failed the tests. city workers said there wasn't inch they could do they couldn't slow the price increase. >> they don't have to increase rates they said no. >> can't be done. answers heard bureaucracies every where. he did something unusual. he put a water contract out forbid. and a for-profit company won. within months a private company fixed the pipes the government couldn't fix. >> how can you trust the drinking water to some outside company? >> the water is safer and cleaner than ever before. >> for the first time in years the city's water met the highest standard for less money. the private companies saved taxpayers more than $100 million. some private companies are bad. you are cherry picking the good examples. maybe i did there. >> they get fired they go out of business. they get fewer. the government workers never fire themselves. >> it is new private workers. if they blow it they are going to get the contract to somebody else. >> these men work for jersey city water when the department said it couldn't be done. they knew it couldn't be done. >> are you working harder now? >> on the go. >> were you goofing off before. >> not only government workers defend that. >> you get about 4,000 plus water related contracts up toer rebidding. 93 percent have been renewed by the public sector. the cities and italians in waste water services. >> now the other side. some on the left. >> prooifr ties everything you can get their hands on. you have old tee baggers who don't want to pay for the things the roads and the dams and the rivers. >> yes i do. i just don't want the money wasted. >> former congressman kucinich says the government workers can do the work just as efficiently? >> when you talk about privatization you end up paying more taxes and fees go up you heard examples that the taxes were lower because they delivered the water more cheaply. >> not going to happen. listen. the question is this. if people want control over these public services in time they will own you. what we have in america is assets that be long to people and municipalities across the country now being brought up by foreign investors. we have for example ab dab bee invested in the parking meter privatization in chicago. you have the tollbooths in it illino indiana $3.4 million investment. investors are planning on making $21 million. they didn't give it away they leased it so they will get it right. the parking meter was a bad thing so they canceled it. the private company when it doesn't cowork out they can fir the company. >> in indiana you have spanish and australian firms invested. they expect to make 21 billion in profits over the term>> how do they do that because they are more ee pish sufficient. >> you raise the tolls? if a private company takes over who are you going to call? >> we elect the public official but the private companies are -- >> i will make sure the streets are repaired you have water and sewer service that is second to none. that is parted of what people vote for. >> you talk about democratic control the people get the vote their representative. you only get to vote every four years and sometimes two years and often you incumbents gain the system unless you get redistracted out. there is knotted really competition. in the private sector where there's competition every minute if you don't serve them well the next guy cleans your clock. that's why things improvement. >> you look at lal burton you look at black water. war is a bigger one. >> the nsa. >> wait a minute, john. not only do i have one, i have the same identical -- kucinich has the same identical constitution. >> you are the mayor of cleveland. somebody wanted to proif ties the electric company. you fought that. that was a good thing? because cleaver land then defaulted. >> our elected company. we saved it as saved taxpayers ten's of millions of dollars if not hundreds of millions of dollars. >> why did you fault? >> the bank said unless you sell the city's electric system to a private they had a financial interest they would refuse to reduce the city's loans it was a corrupt thing that had to be turned out. we have to expect there would be certain public services rendered to people. police, fire, yes fire. waste collection, water, sewer. >> it has to be government run. >> it should be. if people don't have control over the water rates the rates go up. why should people have to go to companies in france and germany to be able to get permission to turn on their water in the state. we have massive investment being made in america infrastructure. we don't own our own country any more. i have a problem with that. i have a problem with foreign investors investing in infrau structur structure. >> thank you senator kucinich. we agree to disagree. i would like to keep the conversation going with you. privatize it, let us know what you think. private parks, libraries and even selling human organs. should we really privatize everything? 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[ female announcer ] stay strong, stay active with boost. pop in the drum of any machine... ♪ ...to wash any size load. it dissolves in any temperature, even cold. tideod pop in. stand out. >> what is something that clearly should not be privatized? many people would answer the public square like the public park. parks need to be open to everyone. there shouldn't be an admission fee. yellowstone park charges user fees about 20 bucks a camp there, $25 to ride your car in. there's little doubt a park is something that ought to be open to the public and therefore run by a government national or local. ann beater man says it's still that way and he should know because he converts the government park into privately managed ones. how did you come up with this idea? >> we took over a park, john, when it was a disaster. >> not far from this studio. >> very visible to everybody because they come to other cities and visit. 2k3w069ment has -- government h allowed very dangerous conditions to govern it there was urine and graffiti. there needed to be a plan. we needed to pay market prices for everything. the private sector is used to market prices. >> as opposed to paying less? >> government prices the government employees are so expensive one of the reasons in manhattan you don't have litter picked up during the day it's too expensive to do that with government employees. >> you found government pays above market prices and gets below market service. >> when you hear government doesn't have a market it is a self compose pose -- imposed commission. >> you have a park dangerous dirty not maintained you say businesses wouldn't you like a nicer park give me some money. >> we started with charitable contributions from it the businesses and rockefellers and came up with a revenue scheme where all of the money going to the budget would come from private business deals. we haven't taken park money from 1997. >> the tapark is nice. >> i get a lot of tearful letters haven't been here for 25 years but great bryant park is something we can enjoy. >> whatever evidence in bryant park the result is a corporate playground. you have these booths, people sell stuff. people advertise stuff. that is not public. that is not a public park. >> only rarely do we have anything commercial and that is to give us enough money to do all of the things that are enjoyed by the public. the park is completely free all of the hundreds of events we run there are free. they can go to the ice rink which is free. it's a revenue scheme that allows the park to operate free of the ups and downs of government money. we keep the corporate messages toned down. if they aren't being built. >> google sponsored the wi-fi we gave them 8 and a half by 11 porcelain signs saying you want wi-fi google paid for it. >> now bryant park even the city is trying to get other people privatize other parks and this is called a fascist corporate takeover. >> there is a cab soolger tooli cartoonish view. they want to do the right things in washington square. >> there are surgszs pd colling true labs surgszs where this is a poll la >> there are large sections where this is popular. we did a park in dal also where i entered my routine about why it should be prooifr tized. we have of already started this you don't have to persuade us. >> you did pittsburgh? >> yes. and you planned a park in newark. you are still working in boston. the dallas park goes over what used to be a highway. >> this is a beauty. it is incredibly popular. as is bryant park. the average income in bryant park about 55,000 a year. this is a playground for executives. >> what else should be privatized? >> mass transit first thing. i always laugh. 100 smart people said to me over the past ten years of course mass transit can never break even. it can't break even at -- under government rules. you are going to pay three times the market price for wages and you are not going to collect from things other than taxes. >> they pay three times the market price from wages? >> i heard metro north flight men are 140 range straight salary and the conductors. the public doesn't know this but part of the problem with mass transit not operating at a balance is the wages and benefits are so high when run by the public. >> they don't know the trains were built by mostly private companies who made a profit first before they took over. privatizing parks or a town's water system or bgarbage collection is one thing, but what about the military and selling human's organs? that's later. next special correspondent kennedy checks out privately run libraries. they offer things like vending machines that dispense fully charged laptops. vo: it's that time of year again. medicare open enrollment. time to compare plans and costs. you don't have to make changes. buit never hurts to see if u can find bettoverage, save money, or both. and check out the preventive benefits you get after the health care la open enrollment ends december 7th. so now's the time. visit medicare.gov or call 1-800-medicare ♪ nothing, that's what? that's why i take prilosec otc each morning for my frequent heartburn. 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[ male announcer ] prilosec otc. millions have raised their hand for the proven relief of the purple pill. and that relief could be in your hand. for many, nexium helps relieve heartburn symptoms from acid reflux disease. find out how you can save at purplepill.com. there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exi. avoid if you te clopidogrel. for many, relief is at hand. ask your doctor abouxium. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. infrom chase. so you can. john: most everyone says >> most everyone says libraries have to be run by government. it's not a store it's a free government service. but just as with roads and garbage removal what if the government instead of trying to manage the library itself hire add private contractor and said you run it? would service decline? would they cut corners to increase profit? we checked out private libraries in california. >> can you drink coffee p and walk around a library? >> you can. >> this is different than most libraries i visiteded. >> we have story times every day for kids all different ages. >> you can check out a computer that comes out of one of the vending machines. >> where is your lap top? you got it. >> it is free as long as you return it. when you want to check out books and dvd's a computer handles that. >> there you go. >> is that cool or what? >> when you return a book no librarian has to find out where it goes on the shelf the machine does that automatically. >> look at that. they have your book. >> people lover this lilove thi library. >> you know they are not public workers, they are hired by a private company? >> i did not know that. >> did you know this is a private library. >> private? >> you see a difference? >> yeah, definitely. >> they do a better job running your labibrary than mayor kelly did. >> he voted against allowing a private company to manage the library. >> i went down a post. i am okay with that. >> are they happy? >> they are thrilled. this library is packed with citizens and families. this is one of the best decisions we have made. would you look at the success of our library system today? >> some think the government should run libraries. if you contract things out to private company they do just fine. the mayor voted against it but now he says i was wrong. >> he was against it before he was for it then he sighs what an incredible success story it is. it saves the tax payer money and also keeps them really involved in the library. they use it themselves. >> the traffic is up 23 percent. circulation up 39 percent. program attendance. >> volunteers are out that means people are coming to help out and really get involved. >> volunteer hours sounds like oh you are taking away government jobs volunteers are going to be doing this. but they have more paid libraria librarians. >> the libraries run so much more efficiently by the private company than when the county ran it the county was only able to offer 14 libraries. this company was able to get enough money together including retirement packages. >> you mentioned lssi which stands for library system and services. they are the one big privatization of library chains. >> that's all they do. they don't have to waste time focusing on anything else. this is a privatization success story. >> the two were open only six days a week now 7 days a week. people hate this term now you talk to the city and they say we object strongly to the term privatization. we have out sourced libraries. >> i think out sourcing is more offensive. if you hear the word privatization involved in a government service you should breathe a sigh of relief. it means it will be run efficiently. >> it might not be but the beauty of it if it is not the city can say okay private company you are fired and hire somebody else. government november fires itself. >> they are not saddled with the long-term pension contracts breaking the bank of many california cities they are doing quite well compared to some of their neighbors. >> the city saves a million dollars a year that they were spending on their own left good libraries. thank you kennedy. coming up 100,000 americans are on a waiting list hoping someone will donate a kidney. or some other organ that might save their life. our next guest went to a country where you can buy and sell organs lelie. what happens there? 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>> they have been doing it for 25 years. >> you interviewed people there, you said what if they it was illega illegal. >> nothing wrong with helping yourself while helping others. >> the sellers thought they were doing a good deed. they didn't think money exchanging hands made it any less valuable as a social act of helping save another person's life. as a matter of fact there are people who said if i had a second kidney i could give i would give it for free because i got so much pleasure out of helping other human being, but r9d oh at least two of us were helped. >> some people didn't feel good enough about it they didn't donate without money. >> some people do. >> in other countries people wait for organs. >> in this country the donations come from all truistic donors. >> who can't get paid. >> who don't get paid. >> one of the pictures you have a black smith who needed money to start his own shop. he told us later he had done that. he built an addition on his house. had his own shop now. interestingly he gave his kidney to a 15-year-old girl who is going to school and doing well. he checks in regularly with her mother because it gives him such a lift to hear that the girl is doing fine. >> here are people who received kidneys. one woman looked really old. i am surprised they would choose to give her a kidney. >> if you qualify medically there is no age limit. >> in america 100,000 people wait hoping. in iran they get a kidney. >> here you have donors and recipients together they get to meet. >> it is almost like open adoption in that way. the parties can decide whether or not they want to get to know each other. about 50 percent of the time they do they have ongoing relationships where the recipients say the donors are like their son they go to dinner at each other's homes and things like that. >> the donor is on the right the recipient on the left. >> correct. >> the rest of the world the people are horrified by this. i am not, you are not. are we just weird? what's your take on this? >> i can't really understand why that whole argument of explo exploiting the poor is so patronizing. >> the rich will take organs from the poor. >> why do you think you lose your ability to reason because money is involved. you don't. it makes a lot of sense to get 50,000 dollars for a kidney and save someone's life rather than working to pay for your child's education. >> we already sell -- women sell eggs men sell sperm. >> blood and bone marrow, yes, we do. >> people view the surgery differently. >> i don't know if it's the surgery. >> i think it's old habits diehard. >> i don't understand the attitude of news reporters who act like adults who trade one kidney for money are helpless suckers. here's is a sample. >> young unemployed man who tried to sell one of their kidneys. they have little understanding of the consequences. >> they understand the consequences. >> there you go. >> the guy i told you about was 32 years old. this young guy decided he had been an apprentice long enough. there were people who paid for their children's educations build additions on their house, start businesses, to get married. as many reasons as therer for wanting money like a loan were reasons to sell the kidney. the added benefit is you are saving someone's life while you are doing it. >> we encourage you to donate, but i wish america would allow is he selling. >> thank you. she has written is book about what she learned in iran. it will come out early next year. >> what else can we privatize in inch more. the son of miment ton friedman he is next. next. [ male announcer ] there will be more powerful storms. that's why there's new duracell quantum. only duracell quantum has a hi-density core. and that means more fuel, more power, more performance than the next leading brand. new duracell quantu trusted everywhere. john: i have to a knowledge the show title is >> we need some government the worst places to live the countries have no rule of law. an african country where you are afraid to build because your neighbor may steal it. nobody builds everybody stays poor. we need government. limited government. the man who taught me that was nobel prize winner milton friedman. >> what with need a widespread central the government needs to be limited to the basic functions. >> i assume that means what is in here the constitution. the court the post office provide for the common defense. but it turns out milton friedman's son david an analyst says we ought to go further and gradually david gets ridz of almost all government? >> all government. i would say of the things government does, some of them are things that should stop doing tomorrow such as arresting people for smoking marijuana and some are things that over time we should be able to find ways of doing privately by voluntary arrangements. will>> like courts our eeing system? >> like courts. a lot of the law currently in fact is arbitration the american arbitration association in effect has its own legal rules. your auto insurance company has its own legal rules when you run into somebody they almost never go to court. in the long run law and enforcing law ought to be private activities. >> before we go into this i should point out your book machinery of freedom goes into details about how a system without government might work. government's laws it protects the poor and the weak. if you didn't have government the rich people would take over. >> are you disturbed by the fact that majority of all felony trials in the u.s. the defense attorney is working for the government? is that is what comes outer our system where if you say you are poor and charged with a felony you get a lawyer but the lawyer is ap pointed by the prosecutor who is trying to con vvince you. >> how old it work in a private system? >> if you look at the president it will do as the best the government pro tuesdays. they produce schools and most of us know what the schools and inner city wiare like. they are mostly places inhabited by poor people. on the whole they do better than worse for people on the market. >> beyond the court how about law enforcement, government, the police i think of as a government job. if you look as recently as 18th century england they had what they looks on paper is the legal system with no police force. if you were robbed it was up to you or someone you hired to find the person who robbed you and to get the victory of the crime. >> in england for well over a century that was a successful society. france in the 18th century had a modern system which police and public prosecutors and france went down into the chaos of the french revolution while england fell on into the victorian period. it is one of the ways it can be done we are much too willing to assume the way we do things is the only way it can be done. >> what about the military? is>> that was the hardest problem. i was more pessimistic when ie soviet union was a serious threat. it fortunately self destructed and at this point our enemies are much less powerful. they don't have hydrogen bombs and missiles and bombers. >> it is true much of the military is prooif sized. halliburton provide meals and builds barracks and does the laundry tdefense department say it would cost much more if we did it>> all of the weapons are prooifr tized. the modern military at least outside of communist states don't build their guns and thanks and things. they buy them from firms. >> thank you david friedman. up next, my take on privatization. i'm beth... and i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. infrom chase. so you can. how do you react when you first see this? 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[ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. john: privatisation jus >> privatization sounds bad to people. not you but you are not normal. you are economically educated you watch this show. regular people believe if it is privately run it favors rich people and excludes the poor and the weak? it has to cost more because they take a profit. and their profit must be our loss. if government runs it we are in this together sharing the good stuff. that makes sense to man he into people. it is wrong. let's look at one town that proo privatized most of the services. >> these workers picking up streets and picking up trash. aren't they working fast? they work for a private company and they get more work done in less time. >> we have fewer employees than the city to the north of us and we have exactly the same population. >> the mayor it is a coincidence she looks like margaret thatcher was delighted they do better job for less money. of course they want profit. >> what difference does it make if the company is making a profit but you are getting a service that cost you less? >> the town saved tax money and private companies offered a better idea. >> traffic lights are sin synchronized so there aren't traffic jams. >> city workers might have eventually figured out a way to synchronize the lights. they didn't. it's not that they are bad people it is just government workers have fewer incentives to rock the boat by trying something new. >> if they don't innovate don't do it better they may lose the contract. if they do it better other cities might hire them and they might get rich. the businessman who ran for president understood that. instead of the government budget what should we cut. we should ask the opposite question what should we keech? >> if only you weren't so wouldn't you might educate people about the privatization. nearly half of the people government pays to work wildfires work for private companies. the president says we need money to put outhouse fires. if your house catches fire it is a private company that will help put it out. private firefighters cost less. >> even police working be privatized. today there are more private security people in america than police working directly for govern thement. oakland california was run to the ground and when the city ran out of money cut out the police force. plan then rose. they they hired private security it was better. >> the presence of patrol seems to reduce crimes in an area by 70 percent. >> in the two years prior to the patrols going live we had about 30 burglaries. in the four and a half months since we have had one burglary and one attempted. >> crime is down and residents are happier. government offers guarantees on paper and promises and speeches but government rarely delivers. market competition does. they aren't perfect but they allow for a world where prudence is rewarded and sloth punished a world in which people are more likely to take risks and innovate. that's a world where more people prosper. that is our show. see you next week. huckabee in two seconds, have a great night. >> tonight on huckabee. >> i am sorry that they are finding themselves in the situation based on assurances they got from me. >> with his credibility on the line the president apologizes after lying about the health care. you will be able to keep your plan, period. >> was the damage done? >> he would tell anyone who cared to listen, he would be a navy seal. >> betrayed and demanding answers from the white house. >> our president has gloried in their excesses and exposing them they have put a target on their back. >> partners of aaron vaughn

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