"It's fascinating to compare Texas and California because they signify the clash that is taking place in America right now. Texas voted for Romney by about 1.3 million votes; California voted for Obama by about 2.3 million votes. The overriding tradition of Texas is that self-reliance rules, and most voters there don't want government telling them what to do. They don't have a lot of social services, there is no income tax, and debt in the Lone Star State is about $40 billion. By contrast, California owes an astounding $167 billion and is running an annual deficit of about $9 billion. What is California getting for all that? The high school graduation rate is 37th out of 50 states, the unemployment rate is 10.1%, and there are more prisoners than any other state. Texas' high school graduation rate ranks 44th, the unemployment rate is 6.6%, and it has more prisoners than any state other than California. So there's not a big difference in economic and social status, but there is a big difference in mindset. California has many more social welfare programs and business regulations. Texans basically want government out of their lives while Californians embrace big government. When San Francisco proposes to ban goldfish, you know you have an intrusive situation. Texas citizens are allowed to carry concealed weapons, but in California only vicious drug cartel people carry guns. So you can see there's a stark difference between living in Texas and California and the question for all Americans is, which place do you think is better? There comes a point where each of us has to decide what kind of country we want. Certainly President Obama is a big government progressive guy and now he has a second term. Talking Points doesn't expect the President to change his philosophy; he's going to spend an enormous amount of money on 'social justice' and he's going to take money away from successful Americans to finance his vision. In Texas, the government does not believe that redistributing income is its responsibility, nor that it should micromanage the lives of its citizens. Trust me, nobody is banning 16-ounce soft drinks in Waco! If California and the federal government continue to spend at the rate they're spending, both will go bankrupt before Barack Obama leaves office."

Guests: Mary Katharine Ham and Juan Williams

The Factor continued the stately discussion with Juan Williams and Mary Katharine Ham. "On paper it sounds like Texas is the place to live," Williams said, "but when you mention that people on motorcycles don't have to wear helmets it reminds me of the health care debate. I don't want to have to pay when that person goes smush on the street. California invests far more in higher education, Texas has the most people on food stamps, and Texas kids lack health insurance." Ham left no doubt which state she'd prefer to call home. "Democrats have had control of the state legislature in California since 1997 and spending has doubled while the population has gone up 15%. When it comes to 8th grade standardized testing for white, black, and Hispanic students, Texas is above the national average and above California. California is an experiment for liberals, yet two million people have left over the last decade." The Factor's bottom line: "If you are dependent on government, you're heading for California, but if you're an entrepreneur and want to keep more of what you earn, you're heading to Texas."

Guests: Senator John McCain

The Factor welcomed Senator John McCain, who has been harshly critical of United Nations Ambassador Susan Rice for her incorrect assertions about the attack in Libya. McCain contended that Rice's false witness could be a disqualifying factor if she is nominated to be Secretary of State. "We are all responsible," he declared, "when we are talking to the American people on behalf of the government or Congress. She had access to classified information that clearly contradicted what she said, and she also said that Al Qaeda was 'decimated.' Al Qaeda is not decimated, it's roaring back in most parts of the Middle East." The Factor theorized that Rice was simply protecting the administration: "She was just a mouthpiece, she was sent out with talking points and she just spouted them off. I don't think she did anything deceitful."

Guests: Adam Carolla

After Tim Allen opined that government assistance doesn't actually help its intended beneficiaries, will his career be harmed? The Factor posed that inside-Hollywood question to Adam Carolla. "This is no big deal for Tim Allen," Carolla said, "because he has enough money that he doesn't have to worry about who he offends. But movie stars do have to win over the populace and not seem out of touch. Look at Michael Moore, who has $50 million and dresses like an out-of-work lesbian trucker. Does he own an article of clothing that doesn't have a hood attached to it?" The Factor added that Allen won't suffer consequences because "the working class folks who like him are generally in tune with his view."

Guests: Bernie Goldberg

In a much-derided editorial, the Washington Post pointed out that many of Susan Rice's critics are white men, many of them from the old Confederacy. The Post's piece was a perfect target for FNC's media analyst Bernie Goldberg. "There is a strategy by some people in the media and in politics," Goldberg explained, "to portray anyone opposed to Susan Rice as racist and sexist. The sleaziest by far is that editorial, which is really off-the-charts. They're saying white, male, Southern representatives must be racist. This is nothing but a contemptible smear and the Post really should be ashamed. This is a way to shut people up because nobody wants to be called a racist." The Factor agreed, saying, "When they demonize people because of their skin color and where they live, it really gets to be extreme."

Guests: Jesse Watters

FNC's Jesse Watters visited an auto race in Florida and took the pulse of some NASCAR fans. Here are a few of their reasons for following the sport: "You have all these cars going around and around the track, it's excitement" ... "Women are in the skimpy stuff, which is what I like to see" ... "This is about America" The racing aficionados also opined on President Obama: "It seems like every word out of his mouth is a lie" ... "He did a good job cleaning up what came before him" ... "He's taken away our liberties and rules by executive decree." Back home in the studio, Watters put forth this conclusion: "This was Romney territory by about two-to-one, but Romney didn't really appeal to these folks because he's a one-percenter. These weren't Obama-haters, they just don't like the direction of the country, especially all the handouts."

Chris Ullmeyer, Myrtle Beach, SC: "O'Reilly, loved your clear and reasonable Talking Points memo about how government assistance programs aided President Obama's reelection. Some people will always vote for Santa Claus."

Steve Perry, San Antonio, TX: "Entitlements are increasing because capitalism and the Bush tax cuts failed our country. America is tired of Republicans favoring rich people."

Simon Saunders, Edinburgh, Scotland: "Bill, the Washington Post implied you were racist because they could not dispute the facts you presented."

Joan Caulfield, New Zealand: "Bill, watched your comments about a traditional society and those who voted for Obama wanting 'stuff.' It was the way you sneered at people wanting stuff that has upset people."

Keep in mind that drinking a glass of water with some lemon juice a half-hour before a meal will curb your appetite.