This is a rush transcript from "Glenn Beck," October 5, 2010. This copy may not be in its final form and may be updated.

GLENN BECK, HOST: Hello, America. I'm glad you're here.

I want you to know, first of all, everything that I say on the program, please do not take my word for it. Please look it up yourself. Look up all of this stuff. But please, try to go to the original sources.

The progressives have controlled the history books for so long, read their own words, read their own diaries. There's plenty of books that people in the Wilson or the Roosevelt administration wrote themselves.
They'll tell you. They'll tell you exactly what happened.

I said to you — it must be hundreds of times now — I hope all of this stuff is wrong. I do. If I'm right, you know, things aren't good for me either. I have nothing to gain here. And really, quite honestly, I think I have more to lose, because if I am wrong, I'll be so wildly discredited nobody will listen to me. We just have to see what happens on the other side.

I have nothing to gain and I have everything to lose. I shouldn't say I have everything — I have nothing to gain. I do. I have a country to pass on to my children if I'm right.

My batting average is pretty good. It's not perfect, but it's pretty good.

What — when I say things trouble is coming, it's not just me. It's The Wall Street Journal. I just showed you the chart that shows, you know, how the Dow is mirroring the 1930s. I mean, I could quote to you chapter and verse how we're doing exactly the same thing that Wilson did that led to nightmares and also FDR, which made it the Great Depression here.

But it's also things like the Hindenburg Omen. We talked about it on this program and I know it was talked about on CNBC and other business networks like Fox Business Channel. It's kind of a complex financial thing. But five things have to happen for it to trigger, and when it does, there's a 77 percent of a crash within the next 30 days. Well, we've just entered the 30-day period.

By the way, the Hindenburg Omen has happened twice.

Now, have you done anything since we told you that story? Have you changed your lifestyle? Have you — have you done anything?

I can tell you this: The global governments, the George Soroses of the world, I just read a story yesterday that billionaires are buying gold by the ton I think it said. I mean, an actual ton.

They've prepared.

Have you heard the old saying, "The rich get richer"? Well, why is that? Well, because they have access to information that you don't have and because they prepare.

Well, there's no excuse for you saying you didn't have access to the information anymore. It's available. It's available everywhere and it's why I tell you, please don't take my word for it. Please. You have to know these things to be true yourself.

I don't want you ever to be in an argument saying, well, I — well, I — well, Glenn Beck said. You know it yourself. Look it up. Do your own homework.

The rich know because they have access to the information. They know history. They know the warning signs. And in many ways, some of them are controlling and manipulating it. George Soros comes to mind. I'll show you at the bottom of the hour.

What's coming is going to require all of us to be prepared and require action from each of us. And I don't mean like, we're gotta get on the street! I mean, you got to vote, you got to educate yourself, but you also have to prepare to be a help for others.

That's why I've been telling you to do the 40-day and 40-night challenge. We have to be the best we can be for the country to survive in hard times. Again, I hope I'm wrong.

Good Americans don't panic. Good Americans roll up their sleeves.
Americans that are unprepared and want to live in this la-la-land where, Hey, don't worry, it's not going to be so bad. If it is, somebody will save me. Well, you're in for a real surprise.

Let me just warn you on this. If the things I say are true, they are going to be telling you to go exactly to the wrong place. Don't go where the government tells you to go because that's usually where all hell breaks loose. I mean, wherever that is, it will be as safe as — oh, I don't know — the Superdome. Remember how safe that was?

There were those who prepared and those who got out. Those who couldn't get out and were trapped and then there were those who said, ah, well, somebody will save me.

I refuse to be the American on my roof. Please make that commitment to me, to yourself, to your children — be somebody who goes and gets a boat and helps other people. Not somebody on the roof making a sign that says, "Help us." Because usually the ones who come to help are from the government and they're not really to help. They're there to help themselves usually.

I want to show you something. They say that imitation is the sincerest form of flattery. Well, I'm so flattered at what the White House is doing now. They aren't using a chalkboard. This is a totally different idea. This is a whiteboard! And they're using it to make their point here on the Bush tax cuts.

OK. This is Austan Goolsbee. He's the president's chair on the Council of Economic Advisors. Watch what he says:

(BEGIN VIDEO CLIP)

AUSTAN GOOLSBEE, COUNCIL OF ECONOMIC ADVISORS: What I wanted to do today is just break it down real simple so you can understand exactly what the debate is about.

(END VIDEO CLIP)

BECK: OK. Come on, Homer. He's going to break it down.

Now, you might think that you had a decent grasp on the concept of tax cuts and tax increases — but maybe not. Listen:

(BEGIN VIDEO CLIP)

GOOLSBEE: What I've done here is we got a ruler and measure up the size of the tax cut, is how big the circle is, by your income, which is listed at the top — from low incomes up to people making more than $1 million a year.

(END VIDEO CLIP)

BECK: OK. So what he's done here is he's taken out a little ruler. And I didn't take out a little ruler, but I think you get the idea. These are the things that George Bush did. These are the tax cuts. So George Bush did this.

If you made $10,000, you got a tax cut. I don't know how you got a tax cut because if you're making $10,000, you don't pay taxes. So what George Bush did is he took some of the money. That's almost like a progressive thing to do. For a Republican, that's strange. He took some of the money here and gave some of the — redistribution of wealth. He gave money to people who didn't pay taxes.

OK. So these are the tax cuts that George Bush gave everybody. All right? Just so you understand that.

And the people — the concept of people making over $1 million having a bigger circle than those making $10,000, they pay $100,000. These paid nothing. But you know they have a circle.

I mean, he has almost lost me here, but I think I'll — I may be able to keep up. Go ahead, Austan:

(BEGIN VIDEO CLIP)

GOOLSBEE: Obama would preserve a couple thousand dollars a year tax cuts for virtually all Americans. And even for people who make a lot. They get to keep the tax cut on the first $250,000 of their income.

(END VIDEO CLIP)

BECK: Wow! Wow, they're living pretty, aren't they? That's so generous, Austan, really. The concept to be able to keep your money that you've worked hard and earned and not have the government just come in and take it — oh, my gosh, you have such a big heart. Doesn't he?

Now, remember, he's changed the conversation. "Obama will preserve" these tax cuts. That's really interesting. What is he saying? Obama is not going to take the money from you, because remember, they're flipping this around. We're not talking about tax cuts. We're talking about tax increases.

Don't look at these at what you're going to — what you're going to get. That's what are they going to take. You already have this money. You've got it. He's going to preserve these tax cuts.

So, in other words, you're not going to feel some tax cuts here but you are going to start feeling tax cuts over here. At $200,000 — I know he's not going to break his promise so I'm sure it's not $200,000, but $250,000.

But that's the kind of big heart they have. They're going to let you keep some of the money. But wait, there's even more:

(BEGIN VIDEO CLIP)

GOOLSBEE: Under the Republican plan, however, people making more than $1 million a year, they are going to be getting a tax cut of more than $100,000.

(END VIDEO CLIP)

BECK: No!

(BEGIN VIDEO CLIP)

GOOLSBEE: That's expensive.

(END VIDEO CLIP)

BECK: No, they're not going to get a tax cut. Ten years ago, they got the tax cut — 10 years ago. It's not a tax cut they're going to get. They're going to have a tax hike. Got it?

See, this is where I like to break it down. Austan, may I squeeze in here? And anybody who else is — you know, any of the Marxist-minded officials in the administration, so maybe you can understand it.

It's not a tax cut of $100,000. The GOP plan is again, nobody would increase taxes by another $100,000.

Now, what do these evil people that make million dollars a year, what do they do? Well, they certainly don't start businesses. No! They certainly don't hire people. No! They have a monocle and a cigar and they sit and they take baths in their money. That's what they do!

They don't need to take a bath with that money. I want to work for this guy because this is the guy who's creating jobs. You get it?

When you take more money than you're taking now, that's called a tax increase. When you — when you're not paying $100,000 a year, but you will next year, that's a tax increase, not a tax cut. Which means that what the GOP is proposing isn't expensive at all. Because he just said that was expensive. But it's not expensive, because it's exactly the same rate as it is now.

So, how can it be costing you money to do that? Because — wait a minute. Wait a minute! I think I — I think I have it. It's costing you money because they want to borrow more money next year.

Now, if you don't want to borrow more money next year, what do you do in your life?

That's what you do. But that's not logical. That's just what you people do. OK?

So, the tax cuts that they've had for the last decade would be preserved — yours, theirs, everybody. They wouldn't be taking more money.

OK. Go ahead. Back to Austan:

(BEGIN VIDEO CLIP)

GOOLSBEE: Giving these big red eggs to the very high-income people would cost $700 billion that we would have to borrow to give it.

(END VIDEO CLIP)

BECK: Why would you borrow money — here, just don't take it. See, you're not — you're not giving it. You're just not taking it.

I don't — this mindset is frustrating for simpletons like me.

Austan, the money Americans earn is not yours. It's not the government's money. You don't take it and then you have to borrow money to give it back. What are you talking about? You're proposing taking more money from them. That's what it is.

Let me show you something. Forget the little bubble thing. Here is what it is: The GOP plan or really the Tea Party plan here, because it's less GOP. Remember the GOP is — anyway. Here's the government. As long as the government has a little ball and chain on it, when you make money, digging ditches or whatever it is you do, they don't take more money. So, you keep the money you've earned. It's crazy.

Here is Obama's plan. You with a shovel, but wait — where is your money? Oh, the big fat government guy just took it from you, because he's giving it to somebody else. Yes. Maybe a union guy or something like that.

What this is they take more of your money to spend it on the people that they like. Not you keeping your money and spending it on what you like.

Let me tell you a story: My son when he was — I don't know, two — we had some friends over. And one of the friends' name was Justin. And Raphe loved the "Star Wars" lightsaber. And so, he took the lightsaber and he's like, it's mine! And my wife and I, Tania, we'd have to intervene and say, no, no, Raphe, you don't take it. It's not yours. It's Justin's.

Well, it took a while to repeat that, you know, because he was three. Raphe learned the lesson. It's an important concept that what other people have is not yours. It's theirs.

It would be helpful if somebody in Washington could learn that. These aren't your toys, Austan. These aren't your toys, President Obama. This isn't your money.

We'll finish this lesson — I hope I haven't lost you, it's pretty complex — when we come back.

(COMMERCIAL BREAK)

BECK: The White House has made fun of me for a while now, and the blackboard, they're making fun of the blackboards. But now, they have Austan Goolsbee, the chair of the economic council at the White House and he's doing a whiteboard. And, it's completely different than the blackboard. I mean, the difference is black and white. And that's it.

But he wants to show you how now how he can tax you — I'm sorry, save you money. He seems to think that money, your hard-earned money and mine, is his and money for his government friends.

Even some of the president's staunchest allies like Chris Matthews understand a very basic principle. Here's Chris:

(BEGIN VIDEO CLIP)

CHRIS MATTHEWS, MSNBC HOST: He should stop saying that giving people tax cuts is giving people money. It's not their money. A tax cut is when government doesn't take our money. It's an important distinction.

(END VIDEO CLIP)

BECK: Yes. OK. So, as for costing $700 billion, how can it cost anything when the money isn't currently coming in? Isn't that like hoping that you get $700 a month raise at work? And then suddenly, one morning, you rush in to your boss' office and tell him, if you don't give me $700 a month raise, it's going to cost me so much money. I'm going to have to borrow $700 every month!

Well, why would have to borrow $700 a month for money you weren't getting in the first place?

Here's more of Austan breaking it down for us, though:

(BEGIN VIDEO CLIP)

GOOLSBEE: If you ask objective economists and analysts around the country about what is effective —

(END VIDEO CLIP)

BECK: Yes.

(BEGIN VIDEO CLIP)

GOOLSBEE: — you will find that everyone agrees that these giant tax cuts for very high-income people are the least effective thing that we could do.

(END VIDEO CLIP)

BECK: Really? Which objective economists are those? And everyone agrees. Am I a tax cut denier? Is that what it is? It's it like global warming and the consensus? I wonder what you mean exactly by "objective."

My guess translation because I speak bullcrap, I'm a recovering alcoholic. I spoke bullcrap for years. Everyone who agrees, the objective economists, are the ones who agree with the president's agenda on everything. Economists like you know, Paul Krugman, who recently told a woman who asked him, "Why isn't there 100 percent tax on the wealthy?"

That's a good idea.

Now, while that may not be the most effective thing to do for the economy, 91 percent, says Paul, might be just about OK:

(BEGIN VIDEO CLIP)

PAUL KRUGMAN, ECONOMIST: I think that the sort of more moderate, reasonable, although answer — although it would be denounced as socialism, communism, whatever — would be to have another one or two tax brackets further up the scale. It's worth remembering that back when we had real socialist presidents, like Dwight Eisenhower, at that point, the top marginal tax bracket was 91 percent.

(END VIDEO CLIP)

BECK: Yes. I don't think he put that in there. I think that was the progressives that did that.

Gosh, a simple fact is when the taxes are lower on the wealthy, revenue increases. It happens over and over and over again. But the progressives and the media don't like you to know that. Revenue goes up.

But when you're penalizing successful business people, not so much. Isn't it weird? And Barack Obama knows it.

How do I know he knows? Why would the president consider taxing the wealthy more, especially in this economy? Well, I know he knows because I heard Charlie Gibson ask him about this very issue as it applies to the capital gains tax at one of the debates in the campaign.

Watch this:

(BEGIN VIDEO CLIP)

CHARLIE GIBSON, MODERATOR: Bill Clinton in 1997 signed legislation that dropped the capital gains tax to 20 percent.

BARACK OBAMA, THEN-PRESIDENTIAL CANDIDATE: Right.

GIBSON: And George Bush has taken it down to 15 percent.

OBAMA: Right.

GIBSON: And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.

So why raise it at all? Especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

(END VIDEO CLIP)

BECK: "For purposes of fairness" — at the expense of common sense fiscal policy, but fairness.

In other words, who cares what actually works, I'm just leveling the playing field.

And why is it he never mentioned that — you know, why is it never mentioned that the people who employ people, the small business owner who makes $250,000 or more? That's who's putting America to work — 70 percent of all jobs are created by these people in America. It is the medium-size business and yes, big businesses owned by those evil multi-millionaires.

Microsoft employs 89,000 people worldwide. We've told you before — tens of thousands of millionaires come from Microsoft, their employees.

Microsoft's billionaire owner, Bill Gates, has given billions of dollars to charity of his own free will.

As evil as Exxon-Mobil is supposedly to listen to the progressives, it employs nearly 81,000 people.

Huntsman Chemical has over 11,000 employees. And as I have mentioned numerous times, Jon Huntsman, Sr., a very good friend of mine, has donated $1.8 billion to charity out of his own personal cash. He's going to die broke because he chooses to.

The rich are not the enemy. They never have been in America. They are the employers. And in many cases, they are the philanthropists.

Who was it that built all the first libraries and hospitals? The poor people? It is the people that become rich in America that help us survive and thrive.

That doesn't mean all rich people are good guys, but it certainly doesn't mean all rich people are bad guys. Rich people, poor people, are just people.

But back to Goolsbee and his lesson:

(BEGIN VIDEO CLIP)

GOOLSBEE: And so what's happening in Congress is that the people that want this are saying nobody here can get any of these tax cuts unless we agree to give this big, red goose egg to the people making more than a million dollars a year. It doesn't make any sense, it costs too much money and we know it doesn't work.

(END VIDEO CLIP)

BECK: All of it — this is just not insulting, it is a lie. I mean, we're now being told — they put pictures of the 8/28 and this thing on 10/2/10. One of the other networks is asking people to deny your eyes now. I mean, when are people going to wake up to the lies?

Extending the Bush tax cut cost nothing extra. It has been proven over and over again that tax cuts do work. They stimulate the economy.
Not tax cuts and spending — that leads to debt.

Not only that, but the Democrats in Congress haven't even submitted a piece of legislation on this for the Republicans to hold up. Yes, the Republicans want the Bush tax cuts extended for everyone. But they're not holding up anything because there's nothing that has moved forward to hold up.

It's a game. You're being played again.

The bottom line is you can put this presentation on a whiteboard or a blackboard or you can put it on billboards. You can put it on — you can put it on a pool hall table. It doesn't matter. It doesn't change the fact that it is the same old class warfare and it is a lie.

They have no problem putting up their top economic adviser telling you that your money is theirs, that you have no right to it and that a proven economic reality is fiction.

Fortunately we all have kids, like mine. And hopefully, we're all parents that teach our kids that somebody else's toys are not theirs. And when you have a toy, it's best to share, but nobody is going to force you to share. You get to choose where to share them and when.

— Watch "Glenn Beck" weekdays at 5 p.m. ET on Fox News Channel

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