updated 8/22/2011 2:33:29 PM ET 2011-08-22T18:33:29

Guests: Michael Eric Dyson, James Peterson, Robert Reich, Chris Larson, Lizz Winstead, Mike
Papantonio

ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW tonight, live from Minneapolis.

Congressman Allen West of Florida compared his House colleague Maxine
Waters to an overseer of a plantation and said he is the modern day Harriet
Tubman. So, what did freedom fighter West tell his unemployed brother to
do? He told him to go to a jobs fair hosted in part by Congresswoman
Maxine Waters.

And tonight, the fight for workers rights in the heartland -- folks,
it is heating up again.

This is THE ED SHOW -- let`s get to work!

(BEGIN VIDEOTAPE)

(MUSIC)

REP. ALLEN WEST (R), FLORIDA: You have established certain black
leaders who are nothing more than overseers of that plantation.

SCHULTZ: Last night, Allen West took a shot at the president and
Congresswoman Maxine Waters. Today, Waters responded.

REP. MAXINE WATERS (D), CALIFORNIA: Mr. West`s brother is here. He
found himself out of a job. And he asked his brother to help him. And his
brother told him to come to me.

SCHULTZ: Now, Allen West`s brother is weighing in. We`ll play you
the tape.

GOV. SCOTT WALKER (R), WISCONSIN: He said that Wisconsin was open for
business. It wasn`t just a slogan.

SCHULTZ: Today, awful job numbers out of the state of Wisconsin.
We`ll see how Scott Walker spins this.

And we have the latest from Ohio.

And then psycho talk. El Rushbaugh just can`t help himself when it
come to race.

RUSH LIMBAUGH, RADIO HOST: The triple double Oreo. It isn`t long
before it`s going to be called the Orbameo.

(END VIDEOTAPE)

SCHULTZ: Great to have you with us tonight, folks. Thanks for
joining us.

As I said on this program last night, I`ve never sustain middle class
in this country so engaged when it come to the issues of labor as I have
seen right now -- whether it is residents of Wisconsin or Ohio or union
members or minority communities. The middle class is getting restless
across this country, waiting for Washington to do something about jobs, and
the rights of American workers.

Take the African-American community, for example. The current
unemployment rate for that community now stands at 16 percent. Members of
the Congressional Black Caucus came face to face with black voters
demanding during an event in Detroit earlier this week.

Congresswoman Maxine Waters said she understood their frustration with
Washington, and with President Obama.

(BEGIN VIDEO CLIP)

WATERS: We want to give them every opportunity. But our people are
hurting. The unemployment is unconscionable. We don`t know what the
strategy is. We don`t know why on this trip that he`s in the United States
now, he is not in a black community. We don`t know that.

But all I`m saying to you is, we`re politicians. We`re elected
officials. We`re trying to do the right thing and the best thing.

When you let us know it is time to let go, we`ll let go.

(END VIDEO CLIP)

SCHULTZ: The congresswoman was sending a clear message to the
president and member of Congress. Elected officials need to take specific
measures to get people back to work before the human toll becomes
overwhelming.

It is a lesson that conservative Congresswoman Allen West learned in
the last 24 hours. Just last night, he was on FOX News calling
Congresswoman Waters and fellow members of the Congressional Black Caucus,
modern day slave masters for their efforts on jobs.

(BEGIN VIDEO CLIP)

WEST: You have this 21st century plantation that has been out there,
where the Democrat Party has forever taken the black vote for granted. You
have established certain black leaders who are nothing more than overseers
of that plantation. And now, the people on that plantation are upset
because they`ve been disregarded, disrespected and their concerns are not
cared about.

I`m here as the modern day Harriet Tubman to lead people on the
underground railroad away from that plantation to a sense of sensibility.

(END VIDEO CLIP)

SCHULTZ: In case you think he misspoke, here was the statement
released by his office today. "Democrat physical enslavement has now
become liberal economic enslavement, which is just as horrible."

So, in Allen West`s mind, liberal economic policies are just as bad as
forced slavery? Which he calls Democrat physical enslavement.

But in private, Congressman West has a very different take on the
Democratic initiatives. You`re looking at hundreds of people in Atlanta,
Georgia, today, lined up at a job fair hosted by the Congressional Black
Caucus. Congresswoman Maxine Waters was there today and pointed out that
Allen West`s political posturing might not match up with his personal
reality.

(BEGIN VIDEO CLIP)

WATERS: We`re using whatever influence and power that we have not
only to connect people but to inspire and motivate them. As a matter of
fact, Mr. West`s brother is here. He found himself out of a job. And he
asked his brother to help him. His brother told him to come to me, to come
to us.

That we`re here in Atlanta where his brother lives and he came up. He
introduced himself. And I want his brother to get a job. And I hope that
his brother gets a job here today.

(END VIDEO CLIP)

SCHULTZ: Allen West`s own brother, Arlan West, has been unemployed,
unfortunately, for more than two months. He`s the father of four living in
Atlanta and he told NBC news, that thing like the jobs fair are exactly
what our leaders should be doing.

(BEGIN VIDEO CLIP)

ARLAN WEST, BROTHER OF REP. ALLEN WEST: The responsibility of our
elected officials is to serve the constituents in any capacity that they
can. And this was a prime example of them doing that. I saw a true,
genuine sincerity from the Congressional Black Caucus to try to get a
community employed that is unemployed.

(END VIDEO CLIP)

SCHULTZ: And what does Allen West think of people like his brother
calling Democrats the overseers of the 21st century plantation?

(BEGIN VIDEO CLIP)

ARLAN WEST: That kind of conversation, that kind of dialogue is not
productive. We need to have productive dialogue in Washington. We need to
all sit at the table together as one and figure the problems of the country
out and come together. That`s what we need to do. We need to stop using
negative rhetoric and negative dialogue because that is not productive.

(END VIDEO CLIP)

SCHULTZ: Very well spoken and on point. The Republican Party and the
Democratic Party, if they don`t understand what`s going on here and if they
keep playing with fire and they think they can politicize joblessness in
America without offering real solutions, they are dead wrong.

There are too many people out of work. And I know the 99ers are upset
because we`ve gotten them off the front page. We really haven`t. We`re
thinking about it. Obviously we want to do the stories.

But too many families across America and it is starting to multiply,
are hurting. And too many excuses are being made.

There will be a breaking point. Even Congressman West had to dial
back his rhetoric after it came out that he told his brother to go to
Atlanta for the job fair.

West`s office sent this statement to THE ED SHOW when we asked him
about it. "Clearly, with my brother out of work, the struggling economy is
very personal to me. I, like millions of Americans, during these difficult
times have stood by a family member, providing suggestions and
encouragement as my brother continues to try to find work. I`m encouraged
by any job conference which helps individuals find a job. However, the
underlying problem remains. The economic policies of President Obama have
not set the conditions for job growth, especially in the black community."

So, Congressman West, what kind of conditions have you set for your
brother to get a job? What have you done?

Congressman West, have you talked to Speaker Boehner about maybe a
jobs package? Correct me if I`m wrong. Correct THE ED SHOW if our
producers are wrong, Congressman -- you have not offered one jobs
initiative. You have not put your name to one effort to get Americans back
to work other than to sit on the side line and heckle the president, heckle
the Democrats and complain about the economy. But you haven`t done a thing
about it.

In fact, you told your brother to go to a jobs fair which was hosted
by the Democrats. So hypocritical, isn`t it?

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

Tonight`s question: is the GOP going to do anything to get Americans
back to work? Text A for yes, text B for no, to 622639. And you can
always go to our blog at Ed.MSNBC.com, and comment there. I`ll bring you
the results of the poll later on in the show.

Joining me now is Michael Eric Dyson, MSNBC political analyst,
Georgetown University Professor and author of the book, "Can You Hear Me
Now?" And Dr. James Peterson, director of Africana Studies and associate
professor of English at Lehigh University. He also blogs for "The
Huffington Post."

Gentlemen, so great to have both have you here with us tonight on this
subject.

There are just a lot of frustrated people in this country. And this
frustration is growing. We see this obstruction taking place in Washington
where both sides came together on a jobs package.

And I have to ask, what is this country going to look like, Michael
Eric Dyson, one year from now if we don`t do anything about jobs. Did you
hear that crowd in Detroit? What are your thoughts on all that?

MICHAEL ERIC DYSON, MSNBC POLITICAL ANALYST: Well, you know, Ed, my
home town is Detroit. So, I hear the cries and the calls of the people. I
hear the blood-curdling screams of desperation for economic recovery and
for a stimulus of their direct area there.

I think that a year from now, we don`t have a jobs package, we don`t
have a jobs legislation put forth, the masses of Americans will be
suffering.

I mean, take for instance, Rick Perry`s own state where one out of
four kids are living in poverty there somewhere near there. I mean,
despite all this Republican rhetoric about cutting spending and denying the
raising of taxes to generate new revenue, we`re in trouble.

We need a jobs package that deals with the direct infrastructure --
infrastructure spending will create millions of job for those who are out
of work and we can also talk about bringing some of those jobs from
overseas back home where people who can do the kind of job that we
outsource. When we come up with creative policies that lend fiscal
integrity to those who are vulnerable, then we will have a revived American
policy that speaks to all people.

SCHULTZ: Yes.

DYSON: In the meantime, this vicious name-calling and epithet-
throwing does nothing to help the fundamental structure of the joblessness
in America, especially in black America.

SCHULTZ: Mr. Peterson, we`ve been told by sources that the
Congressional Black Caucus will make a real effort to have a straight
talking session with the president of the United States to make sure that
he knows the level of frustration within the black community.

What should the president do? What can he do when he gets no help
from Republicans?

DR. JAMES PETERSON, LEHIGH UNIVERSITY: Well, listen. This is a
really tough situation. The political theater has a purpose here. So, the
president has to address the jobs issue the way the president of the United
States needs to address it which is broad swath mainstream America. The
Congressional Black Caucus who is the represent black folk, those districts
they represent. So, some of that political theater has a purpose.

Maxine Waters is right here. They have to draw attention that this is
an excruciating problem within the African-American community. The
president should take notice. And if he addresses it through the African-
American community, by the way, he will also help to reduce the overall
unemployment rate much more quickly.

SCHULTZ: Michael Eric Dyson, why is Allen West, do you think, the
congressman, is saying thing about being a modern day Harriet Tubman in
public? And privately, he is telling his brother to go to a jobs fair
that`s put on by the Democrats. What about that?

DYSON: Well, first of all, he needs to take one of the Professor
Peterson`s classes where he can learn to parse the symbolism of English
better -- and talk about slavery? I mean, that`s ridiculous. It is
hypocritical.

The reality is, is that his own brother is suffering from joblessness.
What did he do? He didn`t call John Boehner. He didn`t tell him tough.
He didn`t say this is the fiscal downturn that is consequence of policies.

He said go see Maxine Waters, go see the Congressional Black Caucus.
If it`s good enough for his brother, it`s good enough for million of
Americans.

And I think Professor Peterson is right. We have to talk about both.
The president has hit the job -- on a jobs bill bus tour. So, he`s out
there trying to hear from mainstream America.

The particular suffering of African-American people must be taken
seriously, so that if we address black unemployment, then American
unemployment will be severely reduced. I think that`s a great kind of
logic to apply to this legislation.

SCHULTZ: Well, gentlemen, I have to broach this sub. I mean, I was
living in this country at a very impressionable age back in the `60s when
civil rights was a major issue and people took to the streets to make a
wrong right.

I mean, are we at this point, Mr. Peterson -- do you think that we
could be at a point where people are going to go to the street and demand
action when it comes to the economic injustice that`s are playing out in
our economy? Could we see some kind of a movement that what we experienced
in the `60s? What do you think?

PETERSON: Absolutely possible. Look at the energy in that Detroit
room where the CBC was at. The CBC is on the ground. They understand.

The president understands that as well but he has taken a different
route.

Ed, listen, the kind of things do you with your show by giving pro-
labor forces in Wisconsin a platform and you saw that contagious overlap in
Ohio, you can see in the Minneapolis, those are the kinds of things that
people have to do.

What Maxine Waters -- Congresswoman Waters means here is we need to
unleash the people, right? She means by saying unleash the
representatives, she means unleash the people. And once the people get an
understanding of what`s really going on, the ways in which a minority Tea
Party is blocking any kind of progress for our country, people will get
angry by that and understand that, listen, we got to step up and be
accountable and be heard in order to have some progress with jobs
development and job creation in this country.

SCHULTZ: Well, I think Maxine Waters and some others were somewhat
taken aback by Detroit and the attitude. They want those congressional
members to push this White House to take action. And it`s going to be
very, very interesting when they come back from recess.

MSNBC political analyst Michael Eric Dyson and Dr. James Peterson,
great to have you both with us tonight. Thank you.

Remember to answer the question at the bottom of the screen. We want
to know what you think.

Robert Reich thinks the president may be ready to propose something
bold in this jobs initiative. That`s next.

And later, Governor Walker`s damaging agenda continues to take a poll
-- a real toll, should I say, on the people across the river in Wisconsin.
Thousands -- thousands of jobs went down the tube last month. State
Senator Chris Larson will be here to add everything up.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Good to have you back with us, folks.

Now, this is my favorite story of the night because it`s just more
falsehoods by the Republicans. President Obama, the guy is going on
vacation. Ten days. Vacation at Martha`s Vineyard. It starts today.

And the vacation criticism, well, it`s out and about and well
underway. RNC Chairman Reince Priebus said the president has been on
vacations and golfing and campaigning nonstop. Sarah Palin and Donald
Trump also got into the act today.

(BEGIN VIDEO CLIPS)

SARAH PALIN (R), FORMER ALASKA GOVERNOR: You know, I wouldn`t if I
were he, especially not to Martha`s Vineyard. I fear what our president is
going to do, and I do predict that he will not be gone the full 10 days. I
think he`s going to hear from enough Americans that he`ll come back early.
I fear he is going to keep his head in the sand.

DONALD TRUMP, BUSINESSMAN: Well, the fact is he takes more vacations
than any human being I`ve ever seen. They used to complain about George
Bush, but I understand he`s already exceeded George Bush and we`re not even
through the year. So, he likes vacation. And we have a president that`s
constantly, whether it is Martha`s Vineyard or someplace else, constantly
on vacation -- I mean, all the time, on vacation.

(END VIDEO CLIPS)

SCHULTZ: Once again, Donald Trump proving there ain`t a whole lot of
brain underneath the hairdo. Of course, the Trumpster, flat out wrong
again.

Now look at this. President Obama has taken, if we can score at home,
38 vacation days away from the White House and 32 days at Camp David.
Folks, that`s a total of 70 days.

By this time in his presidency, George W. Bush had spent 102 days on
his Texas ranch and 123 days at Camp David for a total of 225 days.

So, we`ve got 225 days for President Bush and 70 days for President
Obama.

As Sarah Palin is concerned, what the heck does the quitter from
Alaska really know about a work ethic anyway? Give me a break.

Donald, admit you`re wrong.

You`re right back. Stay with us.

(COMMERCIAL BREAK)

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

President Obama will unveil a new jobs plan before Congress in
September. And although the full details are still to come, here`s what he
had to say yesterday about rebuilding America.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We got a lot of
construction workers that are out of work when the housing bubble went
bust. And interest rates are low and contractors are ready to come in on
time under budget. This is the great time to rebuild our roads and our
bridges, and locks in the Mississippi, and our seaports and our airports.
We could be doing that right now if Congress was willing to act.

(END VIDEO CLIP)

SCHULTZ: It all sounds good about it won`t mean much if the president
can`t get something through Congress -- particularly when all the
Republicans want to cut spending into absolutely nothing else. The
president also said his jobs proposal will be paid for and in September,
he`ll be proposing another grand bargain of deficit reduction for the so
call supercommittee to consider.

So how does this all mesh together? Let`s bring in former labor
secretary under the Clinton administration and author of the book,
"Aftershock," Mr. Robert Reich.

Robert, good to have you with us.

You wrote today that President Obama might be ready to propose
something bold. Why do you think that and what do you think it will be?

ROBERT REICH, FORMER LABOR SECRETARY: I think, Ed, because the
Republicans have been so recalcitrant that anybody in Washington with half
a brain knows that they`re going to say no to anything he proposes. So,
why not propose something that is bold and big enough to deal with the jobs
problem? And then campaign on it. Fight on it. Be the fighter for a
working people.

The president is getting conflicting advice right now. My information
is that some of his advisers are saying don`t do much, don`t try for much.
It will look bad if you try for something big. The Republicans will call
you. It will give them more tinder to call a big government liberal.

But there are lot of people saying to the president, including some
advisers, now is the time. Unemployment -- 25 million Americans
unemployed, the economy is almost dead in the water -- you have got to.
This is the perfect time for you, Mr. President, to get out there and tell
Americans that you are fighting for them. And if the Republicans won`t go
along, you`re going to fight all the way through the election.

SCHULTZ: But, Mr. Reich, isn`t he dealing with a new part of the
equation? You`ve got congressional members that are home, that are getting
an earful. It is emotional.

People are distraught. They need help. They`ve been unemployed for a
long time.

Isn`t this the perfect time to make sure that you get the people`s
attention by offering up something very grand?

Who cares what the Republicans think? Why doesn`t the White House
that position?

REICH: Ed, absolutely. I mean, it`s not just emotional. I mean, it
is actually -- it is economics. It`s economics 101. I mean, when you have
so many -- 25 million -- people working part time or looking for job, when
you have so little consumer demand. And consumers are 70 percent of the
economy. When businesses are not hiring because they`re not customers, you
got to have government there as the spender of last resort.

Even though -- yes, you want the long term debt under control. But
unless you get growth back, the long term debt will be worse and worse and
worse as a percentage of the national economy.

So, it makes absolute economic sense for the president to stand for
something and demand something that is bold in terms of a jobs package.

SCHULTZ: And what would be the most boldest thing in your opinion the
president could do that would be achievable in his term?

REICH: Well, there are a number of things that I think would go into
the job package: exempting the first $20,000 of income from payroll tax
from the next couple years for one thing. Number two, a kind of an
infrastructure bank that would take advantage of the low interest rates out
there right now -- and as you said a moment ago, could pour that into
bridges and ports and all the thing need to be done.

School buildings that are falling apart. And he could employ a huge
number of people doing that. A new WFA, civilian conservation corps. I
mean, there`s a very long list of what could be done to get people working
right now and I think the president should be saying it and demanding it.

SCHULTZ: If he doesn`t get it, when does the president turn to 2012?
Does he continue doing this throughout and not give up on it? Is there
going to come a time, Mr. Reich, where he`s going to turn to the American
people and say, I`ve done everything I can do to work the Republicans.
Here`s the proposal. They`re saying no to everything.

When does that day come if it ever does?

REICH: I`ll tell you, Ed, I think right after Labor Day, he actually
announces his jobs proposal, his jobs plan. It is bold enough to get
people jobs. He goes to the Republicans and says, I want this.

If the Republicans then say no, as I expect they will, then he
energizes, mobilizes, tries to organize the American people. If the
Republicans continue to say no, the president says OK, this will be part of
the election. This is part of the 2012 election.

America, you want your jobs back. You need to have an economy that`s
growing. This is the plan. Let them just say no.

SCHULTZ: So, this would be Harry Truman 1948 run against the
Congress, correct?

REICH: Well, run against the Republicans in Congress -- but expose
the lie that they had continued to tell the American people, the Republican
lie, which is that a smaller government means more jobs. That is
absolutely counter to any kind of logic. But they got to be smoked out on
that.

SCHULTZ: Great you have to with us, Robert Reich, former labor
secretary, with us here on THE ED SHOW.

REICH: Thanks, Ed.

SCHULTZ: He called himself a liberal when it wasn`t popular to do so.
Senator Paul Wellstone was a true fighter for the middle class. Today, I
was absolutely honored to receive an award in his name from the United
Steelworkers. Part of my speech coming up. Stay with us.

And Rush Limbaugh compares President Obama to a new part of Oreo
cookie? I know the Drugster is an expert when it comes to snacking. But
this one is way over the line. He`s going into the zone.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: For over 11 years, Paul Wellstone served the people of
Minnesota in the United States Senate. He was a proud liberal, a voice for
the middle class and an advocate for the poor. He fought for workers until
the day he died.

Earlier today in Las Vegas, I was honored and humbled to receive an
award from the United Steel Workers in Senator Wellstone`s name.

(BEGIN VIDEO CLIP)

SCHULTZ: Paul Wellstone, what an honor. It is an honor for me to get
this award. And I think we can really think back about the kind of fighter
he was for the middle class and how he was always giving unwavering support
to organized labor and collective bargaining and the rights of workers and
the middle class in this country.

So I want to ask you a couple of questions about where we are as a
country right now, with Paul Wellstone in mind. Do you think Paul
Wellstone would have said, yes, let`s extend the Bush tax cuts? Do you
think he would have done that?

CROWD: No.

SCHULTZ: Do you think Paul Wellstone would have been on the front
lines of the people in Madison, Wisconsin, fighting against Governor
Walker`s radical agenda? Do you think he would have been there?

CROWD: Yes.

SCHULTZ: Do you think Paul Wellstone would have been silent with this
attack we have on public education in America? Do you think he would have
stood on the side lines?

CROWD: No.

SCHULTZ: I am honored that my name is on this award. And I am also
honored that you think so highly of your profession, your family, your
community and your country that you are willing to stand up and say no to a
radical agenda that is sweeping this country.

(END VIDEO CLIP)

SCHULTZ: Many thanks to the steel workers. And it has been a bad
couple of week for Wisconsin Governor Scott Walker. He lost a couple his
cronies in the recall elections. And now we find out his state lost more
than 12,000 private sector jobs in the month of July. I think this
validates a Walker recall effort -- a recall election. State Senator Chris
Larson will weigh in next.

And rough day for Governor Rick Perry over in New Hampshire on the
campaign trail. He can`t defend his views on Social Security, because he`s
-- well, he`s too busy eating. We`ll explain. You`re watching THE ED
SHOW. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Wisconsin Governor Scott Walker`s agenda, well, it is
unraveling. Just for the record, so we`re all on the same page, this guy
came in and he cut corporate tax rates, which everybody is screaming about.
He didn`t raise taxes on the job creators, the top income earners.

Well, how is it going? Now his state job numbers are going south. A
new report shows Wisconsin has had a net loss of more than 8,000 jobs in
the month of July. The state lost a whopping 12,500 jobs in the private
sector. And the unemployment rate is up.

Did you hear that, up, 7.8 percent. Now this is more evidence that
Walker is long headed when it come to the economy and creating a jobs. He
took on an old, failed Republican philosophy. The bottom line is it is not
working.

The July losses almost completely wiped out the June job increases
Walker was spouting off about with his buddies over on Fox News as they
were bragging about it earlier this month.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The state of Wisconsin is seeing success in job
growth. Fox News alert.

UNIDENTIFIED AMLE: We are in a pickle when it come to job. What are
you doing there that we might be able to do across the country?

GOV. SCOTT WALKER (R), WISCONSIN: Well, I think the biggest thing is
getting your fiscal house in order and then easing off, getting out of the
way of business.

UNIDENTIFIED MALE: Union busting Governor Scott Walker on "Fox and
Friends" taking a victory lap in his Wisconsin miracle. And miracle it is.

(END VIDEO CLIP)

SCHULTZ: Miracle? Now that is Psycho Talk. Now the miracle has
disappeared. But Governor Walker, he is not taking the blame. Heck no.
His administration, they released the following statement: "Wisconsin is
not immune to the national economic slowdown this summer. And we are
seeing the effects of the national economy in our July numbers."

So when the state adds jobs, it`s because of Governor Walker`s
policies. But, of course, when they lose jobs, it is because of the
national economy and President Obama doesn`t have a clue what`s going on.

I`m not buying it and I don`t think my next guest is going to buy that
either. Let`s bring in Wisconsin Democratic State Senator Chris Larson.
Senator, good to have you with us tonight.

Is this just proof positive that the old Republican theory of reducing
taxes to absolutely everybody you possibly can is going to stimulate the
economy and create jobs?

CHRIS LARSON (D), WISCONSIN STATE SENATOR: This hasn`t worked. This
is pretty obvious. They tried to tote these number last month, in saying
that this was a miracle in Wisconsin. We`re happy when jobs are created in
Wisconsin. We`re happy when we are able to work together to actually do
things in the long term to help our state.

But unfortunately, this month`s job numbers show that that hasn`t
happened. His policies have failed. We`re going the opposite way. And
this -- I mean, he`s having -- Walker`s having a bad week. He lost his two
colleagues, the two Republican senators. They weren`t able to pick off any
of the Democratic senators.

Now these numbers come out. Earlier today, I don`t know if you saw
this, Walker actually endorsed Paul Ryan running for president. So Walker
is really -- I think he is endorsing his plan to recall him if he is going
to last the rest of this year.

SCHULTZ: Just for the record, in the recall effort in Wisconsin, the
numbers five to four, Democrats winning over Republicans. You picked up
two senate seats. And I want to point out, because I had someone in Las
Vegas today say to me, gosh, a tough loss for the Democrats. I said, wait
a minute, all 14 senators who left the state in protest of a radical agenda
are still in the Wisconsin state senate.

They`re all working. None of them were recalled. The Republicans
weren`t able to recall any Democrats whatsoever. So what does this mean
moving forward for Wisconsin? Does this really make it a shoe-in for
recalling Governor Walker?

LARSON: Well, it is going to be tough. It is not going to be easy,
Ed. But you`re right. We have a pretty big victory. The only victory we
didn`t get was in getting the majority. But we won a majority of the seats
that were up for recall. If you take all the votes together, Democrats won
more votes than Republicans.

We were able to hold off from them recalling any of the Democrats. If
you take the numbers, we were able to increase the margins for Democrats
over Republicans from where Walker was just a few months ago. They`re even
going so far as to try to change the way that we have recalls in our state
in order to protect Scott Walker.

But I think that movement is moving forward. Walker is even giving
lip service to working in a bipartisan fashion. We haven`t seen him doing
it. He is just trying to say that because I think his pollster is nudging
him to do that.

But, yes, that effort to recall Walker is definitely going to move
forward.

SCHULTZ: For him to come out and support Paul Ryan to run for
president I think just underscores how radical he actually is. The other
thing I want to bring up is here`s RNC chairman Reince Priebus this morning
on this network, talking about a potential Walker recall effort, which we
were just talking about. Here is how he`s viewing it. Here it is.

(BEGIN VIDEO CLIP)

REINCE PRIEBUS, RNC CHAIRMAN: If the public employee unions want to
flush another 30 million down the toilet and then allow Scott Walker to be
even stronger and win a recall election, and then we`ll pass more reforms
after that, then they should go ahead and do it, because the 30 million
they flushed down the toilet will be 30 million they don`t have for other
races.

So hey, go for it.

(END VIDEO CLIP)

SCHULTZ: Go for it. Chris Larson, what is your response to that?

LARSON: Well, I think it`s great that Reince Priebus is endorsing the
idea of recalling Walker as well. I would encourage him to sign a petition
when we start circulating them in January. I think actually the chairman
actually got beat by one of the candidates, one of the Democratic state
senators who was up for recall on Tuesday, and won with 57 percent of the
vote.

It just shows that he was rejected personally. Republicans have been
rejected. Democrats are standing up. We`re standing up and we`re winning
in Wisconsin. Come January, this is Wisconsin too. Come January, we`re
going to go out and we`re going to collect half a million signatures and
recall the governor of Wisconsin. Because when we stand up, when we fight,
we win.

SCHULTZ: No doubt. Wisconsin state senator Chris Larson, great to
have you with us tonight. I want to tell you that I`ve met some great
people from Ohio today in Las Vegas at the Steel Workers Convention. They
are very motivated to do what they have to do on Senate Bill 5.

Yesterday, Rush Limbaugh had to share the Psycho spotlight with
Hannity. But tonight, the Drugster, he has it all alone. He can`t help
himself with those racial slurs. He`s going in the zone. Stay with us.
We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: So let`s talk Ohio for just a moment. The folk leading the
effort to repeal Ohio Governor John Kasich`s union busting collective
bargaining law have formally rejected the governor`s call for negotiations.
Leaders of the Democratic group We Are Ohio and The Ohio AFL-CIO are
refusing to meet with Kasich until the law is repealed.

Kasich is mad the group rejected his offer. But you see, back in
February, he was singing a different tune during an interview with radical
right wing talker Bill Cunningham.

(BEGIN VIDEO CLIP)

GOV. JOHN KASICH (R), OHIO: I know what they`re concerned about.
I`ve spoken to them.

BILL CUNNINGHAM, RADIO TALK SHOW HOST: Meet with them, governor.

KASICH: Well, Bill, the simple fact of the matter is that a lot of my
people that put this stuff together have spoken to them.

CUNNINGHAM: But the governor -- you have to get in a room with them,
governor.

KASICH: Bill, Bill, let me explain to you. I`m not going to put you
in a position to say that I don`t listen. I`ve listened. I`ve heard.
I`ve made a decision, Bill. We`ve spent a lot of time in Ohio, talk, talk,
talk, talking.

CUNNINGHAM: The governor is done talking. You`re walking.

KASICH: It`s time to do some things.

(END VIDEO CLIP)

SCHULTZ: "Time to do some things." Well, that`s exactly what the
Democrats are saying now, Mr. Kasich. Kasich is right. The time for
talking is over. And millions of Ohio voters will walk into the voting
booth and repeal Senate Bill 5 in November. THE ED SHOW will be in Ohio in
September to stand with middle class workers who are fighting the good
fight.

Next up, Rush Limbaugh turns into the Cookie Monster in Psycho Talk.

(COMMERCIAL BREAK)

SCHULTZ: In Psycho Talk tonight, Rush Limbaugh back for the second
night in a row. It is quite an honor on this show. On this show
yesterday, he was talking about a new Oreo cookie called the Triple Double
Oreo. But the Drugster came up with a different name.

(BEGIN VIDEO CLIP)

SCHULTZ: The Triple Double Oreo. You wait, it isn`t going to be long
before it is going to be called the Orbameo (ph) or something like this.
It`s a biracial cookie here. This story is from the "Chicago Tribune." It
is all about Kraft`s juicing up its investment in the Oreo in recent years.

Every time Michelle Obama goes out there and starts talking about
healthful eating, the food industry responds with oh, yeah, take this. And
Kraft comes up with the Orbameo, the triple double dipper.

(END VIDEO CLIP)

SCHULTZ: Leave it to Rush to come one bogus attacks on President and
Mrs. Obama in one story. But this isn`t the first time Rush has compared
President Obama to an Oreo. You see, he did it back in 2005 at the end of
a rant about how food safety regulations are supposedly putting companies
out of business.

(BEGIN VIDEO CLIP)

LIMBAUGH: They`re going to come for potato chips. And after that,
they`re going to go after wine. And after that, they`re going to go after
Oreos. They might have to put that off until Obama is out of office, but
they`ll eventually go after Oreos.

(END VIDEO CLIP)

SCHULTZ: Rush Limbaugh spews this garbage knowing full well it is a
racial slur. He once hammered Democrats over an unconfirmed report that
people threw Oreos at Michael Steele during a 2002 debate. The Drugster
has no excuse for this one. Using a cookie to take a racially charged shot
at President Obama is double stuffed Psycho Talk.

Rick Perry won`t answer a question about Social Security because he
has, quote, "a mouthful." His words, not mine. Lizz Winstead and Mike
Papantonio will weigh in on that and so much more in the news. Stay with
us. We`re right back on THE ED SHOW.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. You know, folks, you have to
admit that the crazy talk with Michele Bachmann is really starting to add
up. I mean, I tell you, we have a library right now you wouldn`t believe.
Michele Bachmann makes it awfully hard for folks to take her seriously as a
presidential candidate when she come up with stuff like this on the trail.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: The day that the
president became president, gasoline was 1.79 a gallon. Look at what it is
today. Under President Bachmann, you will see gasoline come down below two
dollars a gallon again. That will happen.

(END VIDEO CLIP)

SCHULTZ: How much a gallon? Maybe I should go back to being a
Republican, if it is going to be that good. I doubt it. While she`s at
it, Michele Bachmann might as well promise a golden chicken in every pot
and a unicorn in every garage.

Her campaign website says that she would roll back gas industry
regulations and open more drilling areas. "If we open drilling areas off
the coast, we would produce 500,000 extra barrels of oil a day by the year
2030." That would knock a whopping three cents per gallon off the price of
gas. Reality check, the price of gasoline is driven by the global oil
market.

If we see two dollars a gallon gas any time soon, it probably means
we`re in the middle of a worldwide economic meltdown. I would wonder if
Michele Bachmann would still want to take credit for that.

(COMMERCIAL BREAK)

SCHULTZ: Today, presidential candidate Rick Perry assured New
Hampshire voters that Social Security -- Social Security is staying put for
seniors, which is in direct conflict with what author Rick Perry wrote in
his book just last year. In the book titled, "Fed Up," Perry wrote that
Social Security is a Ponzi Scheme. He compared to it a bad disease, and
said it is, quote, "a crumbling monument of failure of the New Deal."

Even better, he suggested that Social Security violates the
Constitution. Needless to say, author Rick Perry is making it real
difficult for presidential candidate Rick Perry these days on the trail.

Today in New Hampshire, a lady asked him about his stance on Social
Security. And Perry said he couldn`t answer it because his mouth was full.
See, he started eating when that question came up.

Joining me now is comedian and co-author of "the Daily Show" -- co-
creator of "The Daily Show," Lizz Winstead, and host of the nationally
syndicated radio talk show "The Ring of Fire," Mike Papantonio. Great to
have both of you with us tonight.

Lizz, let`s start with you. So Rick Perry can`t answer questions on
Social Security because he`s eating. What`s happening here?

LIZZ WINSTEAD, COMEDIAN: Because his mouth is full. The Republicans
could just make a 500 percent improvement if they would just find a
candidate who didn`t have a photo op with something in their mouth.

SCHULTZ: Here`s one for you, Mike. Perry`s spokesman did tell the
"Wall Street Journal" that Perry`s book is not meant to reflect the
governor`s current views on the issue of Social Security. He just released
the book last year. What does this all mean?

MIKE PAPANTONIO, RADIO TALK SHOW HOST: Well, that`s the problem.
Perry doesn`t understand that he is not at a county fair in Texas anymore,
running for governor, eating funnel cakes and deep fried butter logs. And
now he has to live with all the stupid talk we heard him say when he was
running for governor in Texas, where he could go to a county fair and he
could talk to the people about stupid, idiotic things that might sell in
Texas.

But right now, he can`t talk to the American public and tell them, we
should do away with Medicare. We should do away with Social Security. We
should do away with the 16th and the 17th Amendment to the U.S.
Constitution, where we can`t even have a standing army.

Or that Texas should secede from the United States. The problem they
have with Perry is this, Ed: he is going to be the Republican candidate.
It is going to happen. Because --

SCHULTZ: That`s right.

PAPANTONIO: Their attitude is no Mormon at the top of the ticket, no
matter what we have to live with. They have to live with this guy.

SCHULTZ: Lizz, I want to play this piece of tape. Here is what Perry
had to say about evolution in schools earlier. Here it is.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R), TEXAS: It is a theory that is out there. And it
has some gas in it. But in Texas, we teach both creationism and evolution
in our public schools.

(END VIDEO CLIP)

SCHULTZ: Well, a spokesman for Texas teachers union tells NBC News
that creationism is not part of the official state curriculum. Kind of
puts Michele Bachmann`s Elvis gaffe in perspective. Does it not, Lizz?

WINSTEAD: Sometimes I am really starting to think that the reason
these Tea Party people don`t believe in evolution is because they haven`t
been part of the process -- part of evolution, so it seems.

PAPANTONIO: I have to tell you this -- you know what? What they
missed here -- I can`t top what Lizz just said, because I totally agree
with it.

But I will tell you this, they -- in Texas, that was where we saw the
big fight to actually rewrite the books, rewrite the science books and talk
about the fact -- make it a major part of the science books.

So for Perry -- and Perry was the guy who was pushing that agenda.
For him to sit back and say, I didn`t know about that, we just teach both,
is absurd. They have huge problems with Perry. There is no way to clean
this guy up.

The good news for Democrats, the good news for President Obama is this
is the guy you`re going to be running against. He is George Bush. They
love the -- George Bush minus ten. They love the guy in Texas. And
they`re going to double down with him. That`s the good news for all
Democrats.

WINSTEAD: Do you know what else too? It is going to be pretty hard
to be chanting we`re number 43, we`re number 46. Like Texas isn`t number
one in anything. So good luck, dude.

SCHULTZ: If he flames out, though, if he flame out, what about Paul
Ryan jumping in? What about Chris Christie?

WINSTEAD: This is what I think is so great, is that basically the
media meme is yeah, maybe somebody normal will eventually jump into this
race. And it is just not happening. You saw Huntsman`s Tweet today,
right? He`s like, I believe in science. I believe in evolution.

It is like, dude -- it`s like the one shirt that has the two arm at
the outlet mall. It`s like -- it`s like -- it`s just -- they don`t want
someone sane.

PAPANTONIO: Lizz, if you look at it, they`re throwing spaghetti up
against the wall and hoping something is going to stick. It is really fun
to watch Karl Rove in his desperation.

Karl Rove is in hell right now. He is in hell because understands
what is getting ready to hand to the Republicans. They`ve turned into the
Tea Party. He knows it. They can`t solve it.

And I got to tell you, Rick Perry is their guy. The more we look at
him, the more we`re going to understand what the new Republican really
looks like.

WINSTEAD: I think they`re all praying for the Rapture, because they
can`t even believe it. They`re like, please just have the Rapture come
before November 2012, please.

SCHULTZ: Lizz Winstead, Mike Papantonio, great to work with you.
Great to have you on the program. Thanks, both of you, for being here
tonight.

Tonight in our survey, I asked you, is the GOP going to do anything to
get Americans back to work? Six percent of you said yes; 94 percent of you
said no.

That`s THE ED SHOW. I`m Ed Schultz. You can listen to my radio show
on Sirius SM Radio, channel 127, Monday through Friday, noon to 3:00 pm. A
big thanks to the steel workers. I`m honored to get that award today in
Las Vegas.

You can follow me on Twitter @EdShow and at WeGotEd.com. "THE LAST
WORD" with Lawrence O`Donnell starts right now. We`ll see you Monday
night.

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

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