updated 9/20/2010 11:53:20 AM ET 2010-09-20T15:53:20

Guests: Barry Lynn, Bob Shrum, Margaret Flowers, Bill Press, Karen

Hanretty, Holland Cooke, Stephanie Miller

ED SCHULTZ, MSNBC ANCHOR:  Good evening, Americans, and welcome to THE ED SHOW tonight from the nation‘s capital, Washington, D.C. 

These stories on the table and hitting “My Hot Buttons” at this hour. 

All “Psycho Talkers” came out to preach about values and morality today here in Washington.  Let‘s see, there was Jim “Waterloo” DeMint, Michele Bachmann, “The Huckster.”  They all wrapped themselves in religion and spewed a bunch of garbage, in my opinion. 

I‘ve got commentary and a guest on that coming up in just a moment. 

Now the political season‘s here.  You‘ve got to fight for what you want.  I am disgusted at how the Democrats are handling health care on the campaign trail. 

Some of them are not only running against it, they‘re advertising against it.  We‘re saving lives and they have no guts to run on what they‘ve passed?  They ought to be ashamed.  I‘ll say more later. 

And Christine O‘Donnell, the closer you look, the crazier she gets.  All kinds of skeletons are falling out of the closet, and I‘ll expose her in the “Playbook” coming up later tonight. 

But this is the story that has me fired up tonight.  Thousands of conservative activists flooded Washington, D.C., today to attend the 2010 Values Voter Summit. 

Folks, this event wasn‘t about values.  I‘ll show you the numbers in a moment. 

This was a psycho summit of who‘s who in the Tea Party nut job category.  Conservative talk show hosts and wannabe 2012 presidential candidates pushed their warped values with the crowd.  Michelle Bachmann, “Slant Head,” Newt, “The Mittster”—Phyllis Schlafly is still around—new Tea Party Christine O‘Donnell and, of course, Senator Jim DeMint, who I think is their hero, they all joined together, the cast of characters, and they just hammered President Obama and the Democrats while they wrapped themselves up in religion. 

Here‘s Jim DeMint. 

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT ®, SOUTH CAROLINA:  I‘ve been working for the last year to stir up some vigorous primaries between establishment Republicans and—between establishment Republicans and Republicans who stand for those principles of freedom.  And folks, instead of diminishing our Party, because of you and people like you all over the country, there‘s been one upset after another all over the country. 

(END VIDEO CLIP)

SCHULTZ:  Now, I‘ve got to hand it to DeMint.  You know, he is, in my opinion, the most successful politician in this country over the last 22 months.  He set the tone for the Republican Party.  And you know what?  The guy has never backed down. 

You know, he wanted to just break the president and—President Obama in every way he possibly can.  And Jim DeMint h as just never backed down from his principles.  You‘ve got to hand him some credit on that one, don‘t you? 

His Party has marched in lockstep to destroy President Obama‘s agenda.  DeMint‘s Tea Party has won election after election by promising voters they‘ll repeal the health care bill, cut Social Security, and cut Medicare.  That‘s what they‘re all about. 

Now, DeMint tried to convince people at this thing today that he‘s compassionate. 

(BEGIN VIDEO CLIP)

DEMINT:  The people that are—that believe that they‘re accountable to God, and because of that they‘re honest, they have integrity, they care about others. 

(END VIDEO CLIP)

SCHULTZ:  Care about others. 

Well, let me tell you something, Mr. DeMint.  DeMint and the Republicans, they don‘t care. 

They want to cut social programs and unemployment for 46.3 million people in poverty.  They want to repeal any help coming for the 50 million Americans who have no health care. 

The Tea Party and the Republicans don‘t value Americans in need.  I think the only thing that they value is the almighty dollar.  They seem to get a kick out of scaring people, too. 

Here‘s a sample of what else was on the agenda at the Voters Values Summit.  Break out the sessions included this—you know they go into their little groups.  Here was one: “Social Justice: Am I My Brother‘s Keeper?”  “How to Reach the Online Generation Without Losing Your Soul,” and “American Apocalypse—When Christians Do Nothing.” 

Oh, that was a dandy.  I‘m sorry I missed that one.

They have nothing on the agenda for the middle class, nothing about job creation, but just get in the way of everything, and nothing for Americans who are wrestling with things on their kitchen table like the unemployed.

“Psycho Talking” queen Michele Bachmann got into the action as well, asking America to embrace her Tea Party. 

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN ®, MINNESOTA:  If you are scared of the Tea Party movement, you are afraid of Thomas Jefferson, who penned our mission statement.  And by the way, you may have heard of it.  It‘s called the Declaration of Independence. 

(END VIDEO CLIP)

SCHULTZ:  Well, the psycho who says she wants Minnesotans to be “armed and dangerous”—that‘s a quote—just said we have nothing to be afraid of. 

I‘ll tell you what‘s scary about Bachmann‘s Tea Party.  If they win this fall, she will do everything in hr power to impeach—did you hear me? -- impeach the president of the United States.  That‘ll be the big enchilada; repeal health care for sure; and every poverty program that‘s out there; and vilify anybody who doesn‘t have a job. 

That‘s Michele Bachmann‘s values. 

The Republicans and the Tea Party—you know, to put the Republicans, the Tea Party and God all in the same sentence, I‘ll tell you what, I just don‘t know how they do it.  They‘re not about social justice, and they really don‘t give a damn about being their brother‘s keeper. 

Joining me now—well let‘s go to the cell phones first. 

Get your cell phones out.  I want to know what you think. 

Tonight‘s text survey question is: Do you think the Tea Party shares your values?  Text “A” for yes, text “B” for no to 622639.  We‘ll bring you the results later on in the show. 

Joining me now is someone who went nose to nose with folks at the “Psycho Summit” today, the Reverend Barry Lynn, president of the Americans United for the Separation of Church and State. 

Well, you just came from hell, Reverend, didn‘t you? 

REV. BARRY LYNN, PRESIDENT, AMERICANS UNITED FOR SEPARATION OF CHURCH

AND STATE:  All I can say is, if I‘m going to hell, I would hope that it‘s at least better than what I just came from.  I almost felt like I had to take a shower. 

You‘re on to a lot of things.  This is a marriage of convenience between the religious right and many elements of the Tea Party movement.  And if people watching this show didn‘t like the old days of the religious right and Jerry Falwell, Pat Robertson, and they don‘t like Tea Party movement, they‘re really going to hate what those two groups breed, because they are people who are talking about values so different from those of normal people, that it‘s hard to believe it. 

When I walked in this afternoon, here‘s what they‘re worried about.  They‘re worried about government over-regulating—I‘m not making this up -- over-regulating toilets, light bulbs.  They‘re worried that the Defense Authorization Bill coming up this Tuesday, if passed, would allow for transgendered sex change operations at federal expense. 

These are the things they‘re worried about at a time when Americans, one in seven of us, are now below the poverty line, when millions of people in the last Census had lost health insurance.  No talk about that.  Their values are values that are fringe extremist ones. 

SCHULTZ:  Now, later in this broadcast we‘re going to talk about Christine O‘Donnell. 

LYNN:  Yes. 

SCHULTZ:  She‘s had some real interesting things happen in our history in dealing with values, of how to run campaigns, and priorities.  But this was basically, as I see it—Tony Perkins‘ group, the Family Research Council—this was almost the embracing of the wacky today, was it not? 

LYNN:  It was the embracing of everybody.  You would think when Christine O‘Donnell walked out, that the Virgin Mary had appeared here in Washington at the Omni Shoreham Hotel. 

The response was absolutely incredible, beyond that of anybody else who appeared.  And she‘s one of the people, by the way, who was moaning about the toilets and the light bulb regulations. 

SCHULTZ:  Is it the thirst for victory and the thirst for power, or is it she‘s just their candidate? 

LYNN:  No.  I‘ll tell you what, both the Tea Party folks that were there, and as well as the religious right, they smell blood in the water.  It‘s the blood of the existing government leadership in this country. 

And when they both smell it, it‘s tinged with a little Tea this year.  They figure they can overlook any of the illegitimate differences that the Tea Partiers may have with the religious right and they‘ll just do anything to win. 

And when I say the differences, there are some real libertarians in the Tea Party movement.  They don‘t want so-called big government replaced by big religion operating through government, but that‘s what the religious right wants.  But they‘re going to try to trash it, cover it over, paper it over, because they‘ve got to win at any cost. 

SCHULTZ:  What is their justification for wanting to repeal health care when it‘s proven this will save lives, it will save money?  They want to take away the pre-existing condition from a patient, the fact that a health insurance company can‘t take your insurance anymore if you get sick.  This is what they‘re against. 

LYNN:  They are against it. 

SCHULTZ:  They want to get rid of the health care reform. 

LYNN:  But you know—

SCHULTZ:  Isn‘t that a moral bill? 

LYNN:  Of course it‘s a moral issue.  These are ethical questions. 

They just are on the wrong side of the ethical divide here. 

When they talk about health care and repealing it—that‘s of course the first thing that they want to do—they believe that people who are sick can and should depend on the so-called free market, which, of course, is only free as long as they‘re not involved in the market.  Then they‘d like a subsidy themselves. 

The inconsistency of this group is absolutely astonishing.  They do a discredit to the United States and to the American revolution. 

When the rhetoric comes out that they are for freedom and liberty, and the freedom and liberty is about light bulbs and whether you can sell sugared soda pop at the public schools, another issue they complained about today, they are disparaging the very core of what made the American revolution, what our Constitution‘s about. 

Christine said she had discovered the Constitution recently.  Well, perhaps she did, but it must be the Constitution of another planet.

SCHULTZ:  Nothing about the middle class, nothing about jobs, nothing about health care.  It‘s all the moral issues.

LYNN:  The moral issues are what they want to talk about.  They said,

by the way, if the government wasn‘t so anti-family—I don‘t know—of

course, most normal people don‘t believe that the government is ant-family

but they say if the government wasn‘t so anti-family, people wouldn‘t be poor, people wouldn‘t be in need of health care.  So they want the market to literally solve everything, the market which they seem to think is in the bible, although I haven‘t found it there myself. 

SCHULTZ:  Now, you‘ve been to these gatherings before to monitor these groups. 

LYNN:  To many.

SCHULTZ:  OK.  Did you sense that the speakers today—and we listed them out—were more radical than in the past?  Are they trying to appease the wacky right? 

LYNN:  This is about the most extreme rhetoric that I have seen, and I‘ve been going to these for 20 years.  They had everybody there, every would-be presidential aspirant there, all trying to out-religious—religiosity at least—out-religiosity everybody else, as well as throw religious justifications in for doing nothing for people in need except blaming them for the problems that they had. 

SCHULTZ:  One more question, quickly.  Nothing about the poverty numbers or anything like that?  They didn‘t mention that stuff. 

LYNN:  No. 

SCHULTZ:  Yes, I didn‘t think so. 

LYNN:  There was some allusion poverty, but remember, poverty, too, is because the government is anti-family, yes. 

SCHULTZ:  Yes.  OK.

Reverend Barry Lynn, great to have you with us tonight. 

LYNN:  Thank you.  Always a pleasure.

SCHULTZ:  Thanks so much. 

SCHULTZ:  Coming up, Tea Party queen Christine O‘Donnell‘s dirty laundry has been hung out to dry.  She‘s completely delusional and is also a mad scientist.  I‘m exposing her in the “Playbook.”

And the “Huckster” just sunk to a new low.  The TV show must be getting to him.  His rant at the “Psycho Summit” earned him a way and a ticket into the “Zone.” 

All that, plus Lady Gaga rips into the righties and Stephanie Miller headlines “Club Ed” tonight. 

You‘re watching THE ED SHOW on MSNBC, live from the nation‘s capital. 

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ:  Welcome back to THE ED SHOW and thanks for watching tonight. 

The Democrats are going to need every vote they can get in November.  Can we agree on that?  But they‘re going to face a political reckoning if they don‘t do something to help the unemployed folks in this country. 

The people who have been out of work the longest are fired up and ready to do something about it in the midterms.  But they‘re not going to vote for a lawmaker or a party who‘s not going to be working for them on the Hill.  They‘re going to become disenfranchised or they‘re going to vote the bums out. 

Now, last month, Senator Debbie Stabenow did the honorable thing, introduced a bill to help the 99ers.  It would extend unemployment and provide tax incentives for businesses to hire long-term unemployed workers. 

It makes sense, right?  Doesn‘t it?  Oh gosh, we can‘t do that, it might be socialist. 

Democratic incumbents should sign this bill and get this thing passed.  This is the right thing to do morally, and it would prove to the right wing that we are the people that care about people after they‘re born. 

Here‘s the bottom line: you have got people out there in America who are unemployed and have been unemployed for a long time.  They don‘t have any loyalty to any party right now.  They‘re down to their underwear.  They‘re down to their T-shirt.  They‘ve lost their homes. 

The only thing that hasn‘t been taken from them is their vote.  And if these people see that the Democrats don‘t want to do anything to help the unemployed, what do you think they‘re going to do?  They‘re either going to stay home, Democrats—I‘m talking to the leadership—or they‘re going to vote for you out because they‘re mad. 

We‘re talking millions of people here.  Now, if I‘m wrong, then I must be getting thousands of fake e-mails every day. 

No, we get the phone calls from these people who are organizing.  They are passionate Americans who have been hung up in this outsourced economy, and they‘re going to show up. 

So I have a suggestion to Harry Reid.  I know everybody‘s going home because they‘ve got to get home and get reelected, but do something—put it on the table.  Make the Republicans say no again.  Bring up the Stabenow bill for the 99ers. 

Joining me now is Democratic strategist Bob Shrum, professor at New York University. 

Bob, great to have you with us tonight. 

BOB SHRUM, DEMOCRATIC STRATEGIST:  Glad to be here. 

SCHULTZ:  Is this a voting bloc that the Democrats should be paying attention to?  Because these are unusual circumstances.  We haven‘t had numbers like this for decades. 

What do you think? 

SHRUM:  Well, first I think it‘s great that you paid attention to them.  They walked up to you at an event and talked to you, because too much of the media focus has been on the Tea Party and its phony grievances.  These are real human beings suffering real hurt, and their families are in real trouble. 

Obviously, Democrats ought to fight on this.  There‘s a natural terrain here. 

The Republican Party, they can say with total truth, wants to give tax cuts to people who make more than $1 million a year.  But they don‘t want to do anything for the hard-core unemployed. 

Now, you can‘t make that argument unless you bring the bill up and unless you fight for the bill.  And even if the bill falls short, you‘ve at least made the effort.  It‘s really something Democrats ought to do right now. 

SCHULTZ:  Now, when you take a look at the way the Democrats are playing this thing out right now, health care, they‘re running away from it.  Bush tax cuts, they‘re caving in on it. 

How does that play out with the base?  What do you think? 

SHRUM:  Oh, I think it‘s a disaster with the base.  Look, we ought to say—I mean, we can pay for extending unemployment compensation for the 99ers in a pretty simple way. 

Let‘s get rid of the Bush tax cuts for people who make over a million bucks a year.  Let‘s not have the government keep that money right now, but use it to help these unemployed people, and to provide a tax cut for the middle class, temporary tax cut for the next two years to spur the economy.  That‘s a fight we can make, and that‘s a fight that can minimize and mitigate losses in this election. 

We‘re supposed to be Democrats.  We‘re supposed to be out there fighting for ordinary people. 

Today is the 223rd anniversary of the signing of the U.S.  Constitution.  In its Preamble, it says the purpose—one of the great purposes is to promote the general welfare. 

The only people that the Republicans want to promote the welfare of are the rich.  The Democrats have to stand up for ordinary people.  And if they don‘t do that, how can they expect these folks to vote for them? 

SCHULTZ:  Bob, would you go so far as to say that the Democrats just do not have an offense right now? 

SHRUM:  Well, I think they‘re getting one.  I think the president is pushing and I think Nancy Pelosi is pushing to try to make a big issue out of this tax cut argument.  And I think we have to do that. 

Then there are some of these Blue Dogs, who, by the way, will be the first people to pay the price in the election.  They think they can go home and run as pretend Republicans.  That won‘t work. 

There are some of these Blue Dogs who want to sit there and say, oh, we can‘t do this because of the deficit.  And we can‘t raise—or take away the tax breaks for the wealthy because we‘re in the middle of a recession. 

You know what?  I think there‘s something morally wrong about people with six-figure incomes and, in most cases, much larger net worths than that, telling people who have lost their homes, lost their jobs, can‘t send their kids to college, are having trouble feeding their families, I‘m going to sacrifice you on the altar of my political expediency. 

SCHULTZ:  Bob Shrum, always a pleasure. 

SHRUM:  Thanks, Ed. 

SCHULTZ:  Great to with you with us tonight. 

And my one final comment on this to the Democratic leadership and to the White House, there‘s no downside in trying to help somebody.  No downside at all.  Introduce the bill, have the debate, put the Republicans in the corner as those who are heartless, because that‘s what they are. 

Coming up, “The Huckster” thinks providing health insurance to someone is like insuring a burned down house.  Just a piece of material. 

I‘ll light him up in the “Zone” next.  Stay with us.

(COMMERCIAL BREAK)

SCHULTZ:  And in “Psycho Talk” tonight, Fox news host and failed presidential candidate Mike Huckabee. 

“The Huckster” spoke at the Values Voter Summit here in Washington today, and he beat up on the righties‘ favorite punching bag, the health care bill. 

Now, Mike has a particular problem with covering pre-existing conditions. 

(BEGIN VIDEO CLIP)

MIKE HUCKABEE ®, FMR. ARKANSAS GOVERNOR:  It‘s such a warm message to say, and we‘re not going to deny anyone from a pre-existing condition.  OK.  Fine.  Then let‘s do that with our property insurance. 

And you can call your insurance agent and say, “I‘d like to buy some insurance for my house.”  He‘d say, “Tell me about your house.”  “Well, sir, it burned down yesterday, but I‘d like to insure it today.”

(LAUGHTER)

HUCKABEE:  And he‘ll say, “I‘m sorry, but we can‘t insure it after it‘s already burned.”  Well, no pre-existing conditions. 

(END VIDEO CLIP)

SCHULTZ:  I mean, I can‘t believe this guy was a preacher.  Values Voters are sure selective about which values to defend, aren‘t they? 

Huckabee is comfortable with leaving for dead anyone with a pre-existing condition?  So if you have asthma or diabetes, or if you‘ve had a C-section, Mike Huckabee thinks that you don‘t deserve health insurance. 

Pre-existing condition coverage will change the lives of millions of Americans. 

Mr. Huckabee, do you get that? 

But Huckabee only cares about his own pocketbook.  Comparing a patient with a pre-existing condition to a house that burned down?  This is the Republican Party, and they are “Psycho Talkers.” 

Coming up, the Republicans are so hard up for ideas, they‘re recycling The Newtster‘s garbage now.  I‘ll get “Rapid Fire Response” on that. 

And the Tea Party nut jobs are dead set on repealing President Obama‘s health care reform.  Democrats have tucked their tail between their legs and they are making me sick.  They are running from a great bill, a great start. 

All that, plus Christine O‘Donnell‘s skeletons, boy they‘re coming out of the closet.  Lady Gaga takes a shot at “The Maverick.”  Can you believe it?  And I‘ll tell you why Michael Vick is my pick in the “Playbook” tonight. 

You‘re watching THE ED SHOW on MSNBC.  Stay with us.

(COMMERCIAL BREAK)

SCHULTZ:  Welcome back to THE ED SHOW.  The Battleground story tonight, well, the democrats, OK, so they have the guts to pass what they called historic health care reform, but they‘re too scared of the Tea Party and the republicans to go out there and sell hard to the American people in this election cycle.  One in seven Americans is now living in poverty in this country.  Fifty one million people almost one in six Americans, they have no health insurance. 

Americans that have insurance, well, they‘re vulnerable too.  Insurers are proposing double-digit rate hikes while middle-class income, where is it going?  It‘s going down.  Median income in households in this country in America dropped 4.2 percent since the recession started.  We‘re going in the wrong direction.  The health care reform, democrats passed this year, is a direct response to the problems that these families are facing.  It provides a lifeline to get people covered.  It will stop insurance companies from jacking up rates.  To inflate their bottom lines, but of course, democrats aren‘t selling it to the voters. 

Rand Paul, Sharron Angle, Christine O‘Donnell, they will stop at nothing to repeal the reform if they win and get the majority in November.  Now, the presidents of the democrats who voted for this reform have literally saved lives with this bill and it‘s going to get better.  They should be out there shouting from the rooftops, but because there‘s this poll out there that says that people just don‘t like it that much, they‘re running away from it.  Folks, the bottom line here is that we‘re saving lives.  That‘s a great campaign slogan, isn‘t it?

Joining me now is Margaret Flowers, Physicians for a National Health Program.  Doctor, good to have you with us tonight.  I appreciate your time.  This is all political at this point.  I know you‘re for universal health care.  I‘m a single payer guy.  This bill isn‘t what we wanted but it was something.  But now we see the democrats running from it.  Isn‘t that somewhat disheartening in your opinion?

MARGARET FLOWERS, PHYSICIANS FOR A NATIONAL HEALTH PROGRAM:  It is disheartening.  It‘s disappointing because as you well know, Ed, the situation in this country is so serious and we need the democrats to be out there saying, and all of our legislators saying that this legislation is maybe a start but we have a long way to go and we need them out there advocating for greater reform actually.  

SCHULTZ:  Are the number of people in this country that want universal health care, is that number growing?

FLOWERS:  That number is growing.  I mean, we know that two-thirds of Americans want a national health insurance system that‘s lifelong, comprehensive, publicly funded, and gives them their choice of doctor and treatment.  And the majority of physicians support this approach as well.  Fifty nine percent of physicians polled three years ago support this approach and that was an increase of 10 percent in a five-year period. 

SCHULTZ:  What is the political climate of those who want universal health care?  Are they motivated to make sure that the democrats keep the majority when they seem to be running away from something that is pretty important to a lot of people with a pre-existing condition?  

FLOWERS:  Well, this legislation that we propose, HR-676 is important for people.  And our organization, as you know, is a nonpartisan organization.  We support candidates that support a national health insurance Medicare for all-like system.  And our members are active, they‘re active, they‘re voters, they‘re educated, and they‘re willing to watch, you know, their legislators to see how they behave on this issue.  

SCHULTZ:  This is—this is Senator Bernie Sanders on this program last night.  Somewhat critical of the leadership on how they‘ve handled the first two years.  Here it is. 

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I), VERMONT:  What Obama has done too much and the democratic leadership in my view has done too much, they keep reaching out to republicans, oh let‘s work in a bipartisan way and every single day they got slapped in the hand.  Filibuster after filibuster. 

(END VIDEO CLIP)

SCHULTZ:  So the bottom line here is, as if the democrats lose the majority, your organization and  those who want single payer some day are going to suffer a massive setback, is that fair statement?

FLOWERS:  Well, that‘s a tough question, Ed, because this year, we had a democratic president and a democratic majority and we still were not able to get the reform that we needed.  What it‘s really going to take is for the people to be educated and active and to be demanding that we do what is necessary for the needs of our people. 

SCHULTZ:  OK.  Dr. Margaret Flowers, good to have you with us tonight. 

Keep up the fight.  You‘re on the right trail.  

FLOWERS:  Thank you.  

SCHULTZ:  For sure, no doubt.  

Now, let‘s get some rapid-fire response from our panel on these stories tonight. 

Senator Jim DeMint of South Carolina says, the thing business wants most is republican gridlock? House republicans are ready to roll out their midterm publicity stunt. 

Hey, a brand-new contract with America.  The only problem is, they still don‘t have and they still don‘t know what is in it. 

And a new commercial from Harry Reid‘s campaign hit Sharron Angle for psycho talking. 

And with us tonight, Bill Press, nationally syndicated radio talk show host and Karen Hanretty, republican strategist.  It‘s great to have both of you with us tonight. 

All right.  Let‘s talk about Mr. DeMint first, Bill.  He says that businesses want gridlock.  Where does he come on with that one?

BILL PRESS, RADIO TALK SHOW HOST:  Look, I think we‘ve got to be honest with what‘s going on here.  Jim DeMint is part is the leader of the Tea Party.  His real objective right now is to take over the Republican Party.  And by the way, he‘s done a pretty damn good job of it.  

SCHULTZ:  The best politician in the last year and no doubt.  

PRESS:  Absolutely.  And I think his objective is to knock off Mitch McConnell and become the next leader—minority leader I think of the United States Senate, that‘s what this is all about and so he‘s giving lip-service to the business community.  The business community doesn‘t want gridlock, they want everything to go there way but this is Jim DeMint I think is just taking a stand to satisfy the Tea Party people.  

SCHULTZ:  What do you think, Karen?

KAREN HANRETTY, REPUBLICAN STRATEGIST:  I think that business community would probably prefer that the Republican Party be the party of no right now, if it means no to cap and trade, no to health care, no to policies that are going to make it more difficult for them to create jobs.  More difficult for them to plan into the future, more difficult for them because they‘re going to be paying more taxes.  Look, the job of the business community is to make money.  And that is a different job than the job of politics and the job of looking after communities.  They have—that‘s what their bottom line is the bottom line.  

PRESS:  And the truth is the business community has never been fatter than it is today, and they‘re sitting on $200 billion in capital that‘s not going out to Main Street, they‘re not investing it, they‘re not making loans.  They have learned to—and they‘re not hiring.  They have learned how to make money today out of this Obama administration and all of the TARP fund they got and they‘re putting nothing back and they‘re whining?  Give me a break. 

SCHULTZ:  Contract with America, what is it going to be?  What‘s your prediction?

HANRETTY:  Well, I predict that just as in 2008 when the democrats came out with their—you know, I‘m sorry, 2006, six for ‘06, right?  You know, look, this is what happens this time of year.  Political parties, caucuses come out with these catchy little phrases.  You know, this is going to be, I think, more short term in you know in perspective.  It‘s not going to be this long term, here‘s what we‘re going to do over the next four to eight years.  It‘s going to be some short-term things that they can do in Congress between now and the end of session.  You know to actually I think corner democrats.  Look, one of the things is transparency.  Everyone likes transparency, right?  Put bills online for three days.  Who‘s going to argue with that?  It just gives them a few more things to go out there and tout.  It‘s going to give them a couple of good news cycles and a.

PRESS:  I go a little farther back, it reminds me in 1994 and Newt Gingrich‘s contract on America, ten planks, when he left four years later, he was forced to resign.  Not one of those things have been enacted and I say beware of all of these promises.  

HANRETTY:  Well, look.

PRESS:  And also, let me just make this other point as well as, I‘m looking forward to his and I‘ll tell you why, because they‘ve been against everything.  Everything for the last two years.  I‘d like to know what they‘re for.  I have no idea what they‘re for. 

HANRETTY:  My guess is, whatever is in this proposal is going to have very broad support, particularly among independent voters and that‘s what you guys are bleeding.  You‘re bleeding independent voters and that‘s why democrats are running ads against the health care bill.  

PRESS:  Bottom line, this is meaningless because Boehner‘s never going to be speaker.  So, none of this is going to be implemented. 

SCHULTZ:  All right.  I want to play this sound bite from Jim DeMint on businesses because I think that the first two subjects we‘re talking about tonight play into one another.  Here‘s DeMint on business.  Oh, it‘s a full screen?  All right, here we go.  “I‘ve been told by businesses that if we would stop the tax increases the best thing that could happen for businesses after that is complete gridlock.  At least, gridlock is predictable.”

Now, why would they want to stop a bill of $30 billion of lending money to community—getting money to community banks, to open up the credit for small businesses?  I don‘t get what—I mean, Senator DeMint today goes over there and just throws stuff out there and see if it will going to stick up on the wall.  Karen, if you‘re running a small business and you needed a loan, can you tell me that you would really want the Congress not to move on that?

HANRETTY:  No, as with everything, the devil‘s in the details.  And every time Congress has a big spending package like this, it always has all of these strings attached.  So we‘re going to give money to small businesses.  You know if you‘re a one-armed gypsy, we‘re going to give you money if you‘re creating jobs for alternative energy.  Forget it if you‘re creating equipment manufacturing that‘s actually going to get this economy moving again, and I think that is the same thing that‘s happening right now.  You have so many strings attached with so many ideological preferences that the money is not really going to get out there anyway.  

PRESS:  No.  

HANRETTY:  Anymore than the stimulus money got out there.  

(CROSSTALK)

SCHULTZ:  So, the community banks and the small business administration is not going to get this $30 billion that they‘re talking about right now?  That the money‘s is not going to get out there?

HANRETTY:  I would be willing to bet that the money doesn‘t get out there anymore than the stimulus money has gotten out there.  Look at how much stimulus money has not been spent.  

(CROSSTALK)

SCHULTZ:  Senator Warner told us he thinks it‘s going to be out in the fourth quarter this year and it will effect—and get upwards of half a million to 700, 000.

HANRETTY:  You can‘t get $30 billion out there, they‘re not capable of doing it.  

PRESS:  Look at what‘s going on.  This is a republican bill.  This is a bill that any republican would have voted for if a republican were in the White House.  But because it‘s Barack Obama‘s bill they‘re against it and here‘s the hypocrisy—if I just could finish my point.  Here‘s the hypocrisy.  They‘re saying, on the tax cuts for the wealthy, we really need them because it‘s going to help small business and they had a bill in front of them to help small business and give them the tax breaks and only two republicans voted for it.  Now you cannot explain that.  

SCHULTZ:  All right.  Let‘s go to Harry Reid.  Harry Reid‘s got a commercial out slamming the crazy Sharron Angle.  Here it is. 

(BEGIN VIDEO CLIP)

ANNOUNCER:  Sharron Angle‘s new attack ad, more crazy talk and out right lies.  This fence, it‘s Harry Reid who got 400 miles of new barriers, 4,000 new border agents, drones, even the National Guard, and Reid never has and never will support Social Security for illegal immigrants.  He wrote the bill opposing it.  Remember, it‘s Sharron Angle who says, she‘d wipe out Social Security and Medicare and Harry Reid who‘s protecting it for Americans. 

(END VIDEO CLIP)

SCHULTZ:  Is that true, Karen?  Does Sharron Angle want to wipe out Social Security?

HANRETTY:  I don‘t think that she wants to wipe out Social Security, and I also think that‘s an effective ad.  I think it‘s a very good ad.  I think you could do a whole psycho babble segment just on Harry Reid‘s gaffes calling President Obama a light-skinned African-American with no Negro dialect.  I think, you could do your own psycho babble on what Harry Reid has said and what he‘s supported.  I think that‘s an effective ad. 

SCHULTZ:  She‘s not going to get rid of Social Security, is that right?

HANRETTY:  Sharron Angle does not have the ability to single-handedly wipe out Social Security.  

PRESS:  Why did she vote on it?  What‘s her vote?  I mean, she stated that she wants to get rid of it.  

HANRETTY:  Do you think there‘s going to be a bill that comes before this Senate to wipe out Social Security?  Of course not.  

SCHULTZ:  I think so, privatizing it front in the market. 

PRESS:  Absolutely.

HANRETTY:  Oh come on!  You know that‘s not going to happen because it will not go over well.  

PRESS:  Hold on, but on the record, she‘s said, and she‘s repeated the fact that she wanted to phase out Medicare and Social Security, among other crazy things.  Look, I think, by the way, Ed, this is a very effective ad.  Harry Reid has to call her out.  It‘s like Christine O‘Donnell accused Mike Castle for voting for the impeachment of George W. Bush.  These Tea Partiers will say anything.  And you got to expose their lives.  Good for Harry Reid.  

HANRETTY:  Harry Reid needs to do everything to take the attention off of Harry Reid.  He‘s so unlikable in that state that he has to do everything that he can.  

SCHULTZ:  Let me ask you.  Who you think talks crazier, Harry Reid or Sharron Angle? 

HANRETTY:  I think, Harry Reid and the gaffes he‘s made over the course of his career.

PRESS:  Karen, Sharron Angle, Christine O‘Donnell, give me a break. 

SCHULTZ:  Oh.  Great to have you with us tonight.  I can‘t believe that admission.  

Coming up, Christine O‘Donnell‘s former aides.  They are just spilling the beans with some juicy secrets from her dark past.  Folks, you‘re not going to believe how psycho she is.  That‘s up next in the Playbook.  Stay with us.

(COMMERCIAL BREAK)

SCHULTZ:  And it‘s not too late to let us know what you think.  Tonight‘s text question survey is, do you think the Tea Party shares your values?  Text A for yes, text B to no to 622639.  We got the results coming up.  Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CHRISTINE O‘DONNELL ®, DELAWARE SENATE NOMINEE:  Bureaucrats and politicians in Washington think they should decide what kind of light bulb we use.  What kind of toilets we flush, what kind of car we drive.  They even want unelected panels of bureaucrats to decide who gets what life-saving medical care, and who just too old or it‘s too expensive to be worth saving.  

(END VIDEO CLIP)

SCHULTZ:  And in my Playbook tonight, Tea Party darling Christine O‘Donnell spoke with the voter value summit today.  And she‘s got those righty talking points now, doesn‘t she?  But skeletons are flying out of her closets, staffers from her failed 2008 Senate campaign are exposing all her dirty laundry.  One aide said, she was more interested in getting a lucrative TV contract than she was in winning the election.  Another said, O‘Donnell thought she was important enough to be the keynote speech deliverer at the National Republican Convention. 

Now, I think O‘Donnell is pretty much delusional.  She‘s done a pretty good job of exposing it herself, don‘t you think?  On “O‘Reilly Show” back in 2007, she was criticizing monkey cloning and came up with this gem.  The quote is this.  “American scientific companies are cross-breeding humans and animals and coming up with mice with fully functioning human brains.”  Whew. 

For more, let me bring in talk radio consultant, Holland Cooke. 

(LAUGHTER)

HOLLAND COOKE, TALK RADIO CONSULTANT:  What can I say? 

SCHULTZ:  You know what?  We‘re supposed to be entertaining in talk radio.  Do we just turn over the microphone to this gal and just constantly play sound bites?  Where do we draw the line on this?

COOKE:  This is a gift from the talk radio Gods.  And I don‘t have to tell you.  You do three hours of talk radio every day.  I listen to talk radio for a living.  And for the better part of 15 years, I‘ve been working with some talk stations in Delaware.  I just heard a caller say, I didn‘t vote on Tuesday.  Now I wish I did.  And I spoke with the guys at WDEL in Wilmington which is the big local talk station in Delaware.  All of the stuff that‘s coming out now, the stuff that you‘ll see in the Politico piece today, I am told from the folks at WDEL that people in Delaware knew about this and they were stunned when she won the election.  So I think this is just another painful reminder of what Al Gore found out the hard way is that every single vote counts.  This was 3,500, 40 some votes that tipped the balance in Delaware.  So will this motivate the base on the other side to show up on Election Day?

SCHULTZ:  Well, Holland, we know that everybody on the right side of the dial and on the left side of the dial, we‘ve got an agenda.  I‘ve got an agenda.  I‘m a liberal.  I‘m a progressive talker.  How are the right-wing talkers going to embrace a candidate like this, which she makes a comment like that, and she made the comment just about light bulbs.  Well, guess what?  Get up with the program.  There are light bulbs out there that are energy-saving.  Hello!

COOKE:  And save you money!

(LAUGHTER)

SCHULTZ:  So how are they going to handle this gem?

COOKE:  Well, obviously, it‘s less than level playing field.  Because it was fine for her to smear Mike Castle with half-truths and outright lies during the campaign.  But she‘s already laying the groundwork that when her resume comes up now in the general, that we‘ll be picking on girls.  So I think there‘s a double standard you‘re about to see play out. 

SCHULTZ:  All right, here‘s another dandy comment she made today at the vote values conference here in Washington.  Here it is. 

(BEGIN VIDEO CLIP)

O‘DONNELL:  As the Berlin wall came down, we sat in front of our televisions and saw the hunger for freedom from the heavy boot of government coming from East Europe.  The golden arches went up in Moscow and here on our own land, family businesses became national chains, Wal-Mart, Home Depot, only in America could that happen.  My generation saw American economic genius and glory on display in our store shelves.  We saw what freedom can do. 

(END VIDEO CLIP)

SCHULTZ:  All right, we know this, she was reading that.  So somebody‘s feeding her this material or maybe she‘s writing her own stuff.  What do you think?

COOK:  Yes, let‘s hear a little less about the president using a teleprompter but I‘ll give her her due.  She‘s a better speaker than Rand Paul or Sharron Angle, and that acceptance speech on primary night, she knocked it out of the park.  She was pitched perfect that night.  What we‘re learning in the revelations that are coming out now, and you mentioned this when you began this segment, she wants a TV job.  Clearly, Sarah Palin doesn‘t want to be president.  She‘d have to take a cut in pay.  She‘s got a better deal now.  Christine O‘Donnell may have what she wants right now.  Notoriety.  Obvious FOX News want to be.  And it‘s like the old gag about W. running for president, to build his resume, he really wanted to be baseball commissioner, and something funny happened.  He became president. 

(LAUGHTER)

SCHULTZ:  All right.  Holland Cooke, talk radio consultant.  Great to have you with us tonight.  

COOKE:  You bet, pal.  

SCHULTZ:  Thanks so much.  

Final page of the Playbook tonight.  For the first time in nearly four years, Michael Vick will be starting at quarterback in the National Football League.  Vick missed two seasons serving an 18-month sentence in a federal prison for taking part in a dog-fighting ring.  Now, folks, I believe in rehabilitation.  Let me just point out that this man went to prison.  He did a lot of community service.  And he is paying his bills.  He‘s trying to make a comeback.  I think this is a great American story. 

And no, I am not in any way, shape, or form defending what this man did.  No one can.  The fact is, if you believe in rehabilitation, I think that you should probably look at this football game this weekend a little bit differently because there‘s a guy putting his life back together.  Isn‘t that what America is all about?  Or are we against rehabilitation, too?

Coming up, a hilarious new movie document—the documents “The Rise of Conservative Women” like Sarah Barracuda and her psycho sister Michele Bachmann.  They call it “Fire from the Heartland.”  Radio talk show host Stephanie Miller will put the flames out, next on THE ED SHOW.  Stay with us.       

(COMMERCIAL BREAK)

SCHULTZ:  Welcome back.  If it‘s Friday, it‘s time for “Club Ed” with nationally syndicated radio talk show host, Stephanie Miller.  Stephanie, great to have you with us tonight.  I‘ll just throw it that you hear the last comment in the last segment, Christine O‘Donnell, mice with human brains, what do you make of it?

STEPHANIE MILLER, RADIO TALK SHOW HOST:  Fully functioning human brains, Ed, here‘s what I think scientists need to work on next.  I think they need to see if we can find the Tea Party candidate that has a fully functioning brain.  That could that be a longer quest.  Here‘s the one issue that I can get excited about is her anti masturbation platform, Ed.  I‘m going to be leading the million masturbation march in Washington.  Will you give me a hand with that?  Will you give me a hand, Ed?  

(LAUGHTER)

SCHULTZ:  No, I‘m all tied up on that one.  All right.  Let‘s talk about, if we can, the GOP, Karl Rove getting thrown under the bus and then being brought back in the family and I guess he‘s going to endorse this psycho talker O‘Donnell.  What do you make of all of the riff?

MILLER:  Isn‘t it the best edition the republicans eating their own, ever?  They throw Karl Rove under the bus, Ed, for telling the truth one time in his whole life.  I mean, it‘s getting to be like “Lord of the Flies” over there, he‘s like that fat kid with the glasses, they‘re going to kill with a rock soon.  It‘s just getting entertaining as all get out.  I love that if Karl Rove tells you, you turn too dirty in a campaigner, you really might be kind of a dirty campaigner, don‘t you think?

SCHULTZ:  All right.  There‘s a new documentary out, “Citizens United Video.”  It‘s a fire from the Heartland.  Here it is.  Awakening of the conservative women.  Here it is. 

(BEGIN VIDEO CLIP)

UNIDENTIFIED WOMAN:  From—Margaret Thatcher, right up to Sarah Palin, Michele Bachmann today, it really is stunning how much of the passion of the conservative movement comes from the women. 

UNIDENTIFIED WOMAN:  President Obama, he has awakened people because of the policies that he is pushing down our throats.  

UNIDENTIFIED WOMAN:  And the culture has tried to take everything that makes women so strong away from their femininity, their morality.  The assault is so arrogant, just so extreme, that facts when you get the angry mama grizzly. 

UNIDENTIFIED WOMAN:  Women are the last line of defense.  

UNIDENTIFIED WOMAN:  So it starts now.  It starts here. 

(END VIDEO CLIP)

SCHULTZ:  Oh, I‘ll tell you what, can you make a movie, Stephanie, can you counter that one?

MILLER:  First of all, Ann Coulter is a woman? 

(LAUGHTER)

MILLER:  Oh, I kid.  You know, did you see there‘s a part in this movie, Ed, where Michele Bachmann, they try to make her look like—she makes some completely you know blunder while she‘s questioning Tim Geithner.  She has no understanding of constitutional ideologue, whatsoever.  I mean, well she‘s a better constitutional scholar than Christine O‘Donnell is a scientist.  I mean.

SCHULTZ:  Stephanie, great to have you with us tonight.  I appreciate you being in Club Ed.

MILLER:  Thanks, Ed.  

SCHULTZ:  Tonight our text survey question, I asked you, do you think that the Tea Party shares your values?  Eight percent of you said, 92 percent of you said, no.  Have a great weekend.  That‘s THE ED SHOW. Chris Matthews and “HARDBALL” is next.  We‘ll see you Monday.    

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

END   

Copyright 2010 CQ-Roll Call, Inc.  All materials herein are protected by

United States copyright law and may not be reproduced, distributed,

transmitted, displayed, published or broadcast without the prior written

permission of CQ-Roll Call. You may not alter or remove any trademark,

copyright or other notice from copies of the content.>

PASTE THE TRANSCRIPT HERE