• With: Jimmy McMillan, Diana Furchtgott-Roth

    This is a RUSH transcript from "The O'Reilly Factor," January 08, 2013. This copy may not be in its final form and may be updated.

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    O'REILLY: "Personal Story Segment" tonight. The "New York Post" reporting that some welfare recipients in New York State have accessed their benefits in strip clubs. "The Post" filed a Freedom of Information Act request to find out where cash withdrawals were being made by welfare recipients.

    Now there is a bill that would make withdrawing money from certain entertainment facilities illegal. With us Jimmy McMillan who ran for Mayor of New York City. And from Washington, Diana Furchtgott-Roth, senior fellow at the Manhattan Institute.

    So how bad do you think the problem is, Diana? Is it just a little thing or is there abuse going on here?

    DIANA FURCHTGOTT-ROTH, SENIOR FELLOW, MANHATTAN INSTITUTE: Well even if it is a little thing withdrawing these funds in casinos and liquor stores gives a lot of temptation to spend it right there. Unfortunately the government, the state government, the federal government doesn't keep data on where people withdraw that cash benefit.

    (CROSSTALK)

    O'REILLY: How does that work? They have a little card have right you get.

    FURCHTGOTT-ROTH: They have a little card. They put it in an ATM machine.

    O'REILLY: Right, right.

    FURCHTGOTT-ROTH: They get the cash out. The cash is supposed to be spent on rent, on utilities and on household purchases.

    O'REILLY: And they can access almost any ATM machine anywhere right, there's gazillions of them.

    FURCHTGOTT-ROTH: That's right. Exactly. There are gazillions of them.

    O'REILLY: All right, so Mr. McMillan "The New York Post" found out that you know strip clubs, liquor stores, some gambling establishments they were using the card in there. That's not good.

    JIMMY MCMILLAN, CANDIDATE FOR NYC MAYOR: Well ATM machine across the street. The ATM machine where I went to doesn't work. So ironically it's in the strip club. But you can't assume that a person withdrawing money from an ATM machine is spending it in a strip club.

    O'REILLY: I don't know -- I don't know if you can assume it but why would you go into a strip club when there are ATM machines everywhere. Why wouldn't you go to a Dunkin' Donuts. I mean come on.

    MCMILLAN: Temporarily out of service, it could have all sorts of fees. You have $1.75 at some machines and also $2.50. So you might, you wouldn't want to go to one that's $2.50 you try to find the cheapest one.

    O'REILLY: Do you think -- really seriously do you think somebody is going to walk into a strip club just because they want to get some of their welfare benefits and then walk out? I mean, come on?

    MCMILLAN: Well, I'm a former stripper.

    O'REILLY: You are a former stripper?

    MCMILLAN: I'm a former stripper.

    O'REILLY: Here in the United States or in some other country.

    MCMILLAN: In the United States. And being a former stripper --

    O'REILLY: Yes.

    MCMILLAN: And 100 percent of the strippers are welfare recipients.

    O'REILLY: Wait, wait, wait you are telling me that the strippers are welfare recipients?

    MCMILLAN: Yes.

    O'REILLY: Aren't you getting paid.

    MCMILLAN: They are -- they need that money Bill, because they have someone babysitting their children so when they get off from work they may have to get money from that machine.

    O'REILLY: All right. So let me get this straight but you get paid to strip, right?

    MCMILLAN: You get paid.

    O'REILLY: But you're on welfare too.

    MCMILLAN: And you're on welfare, yes.

    FURCHTGOTT-ROTH: Because they don't get paid enough. They don't get paid enough.

    MCMILLAN: Thank you, thank you so much. The benefit. You need -- this is something that we're -- I ran for governor for state of New York last year.

    O'REILLY: Yes.

    MCMILLAN: And this was a part of my platform in the beginning.

    O'REILLY: So you think it's ok then for people to access both strippers and people watching strippers?

    MCMILLAN: It's baseless for the state legislative body to get up and talk about this matter because there's many things you have people on Wall Street with businesses entire family is on welfare. So if you won't --