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PoliticsNation, Tuesday, November 15, 2011

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Guests: Jan Schakowsky, Melissa Harris-Perry, Jon Erpenbach, Mike Tate,
Jonathan Capehart, Alan Grayson

REV. AL SHARPTON, HOST: Hey, Republicans. The conversation`s
changing. Can you hear it now?

(BEGIN VIDEOTAPE)

SHARPTON (voice-over): Hundreds evicted and arrested at Occupy Wall
Street, the heart of the worldwide protests for fairness.

Tonight, a ruling against the protesters. But the fight against
corporate greed is already spreading, and Republicans just don`t get the
message.

REP. JOHN BOEHNER (RR-OH), SPEAKER OF THE HOUSE: I don`t think I
would describe class warfare as leadership.

SHARPTON: Tonight, Congresswoman Jan Schakowsky and Melissa Harris-
Perry on the real class warfare.

ELIZABETH WARREN (D), MASSACHUSETTS SENATORIAL CANDIDATE: I stood up
to the big banks and their army of Washington lobbyists.

SHARPTON: Here comes Elizabeth Warren. Alan Grayson on how a warrior
and the fight for fairness has Republican Scott Brown running scared.

And Wisconsin showdown. Democrats launch their battle to take down
union-busting Governor Scott Walker. We`ll go there live.

Plus, another Herman Cain moment.

UNIDENTIFIED MALE: Would you favor collective bargaining for federal
employees?

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: They already have it, don`t
they?

SHARPTON: Oh, brother.

POLITICS NATION starts right now.

(END VIDEOTAPE)

SHARPTON: Welcome to POLITICS NATION. I`m Al Sharpton.

Tonight`s lead, in just 59 days something has changed in this country.
Before dawn this morning, police officers in riot gear raided Occupy Wall
Street, evicting and arresting hundreds of protesters. A judge ruled late
today that the protesters may not bring their tents and gear back into the
park.

It`s a shrewd move by Mayor Bloomberg, but I disagree with it.
Protest is allowed, but staying in the park is not? But no matter what
happens in that park, this movement against corporate greed is not only not
over, it`s only just beginning.

Thanks to what Occupy Wall Street has done, there`s a new focus on
injustice in our economy, like the fact that the top one percent has seen
their earnings grow by 275 percent over the past 30 years, but the middle
class, they have only saw 40 percent growth. And the poor, they have only
seen an 18 percent increase.

This is not America. I don`t care if you`re Democrat or Republican,
we should not be a country where the top one percent controls 40 percent of
the wealth. This conversation should not be written off as Republicans
have done.

(BEGIN VIDEO CLIP)

BOEHNER: I don`t think I would describe class warfare as leadership.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: When you pick one area of
the economy and you say we`re going to tax those people, because most
people are not those people, that`s class warfare.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. PAUL RYAN (R), WISCONSIN: Since when do we in America accept
this alien and discredited theory of social and class warfare?

(END VIDEO CLIP)

SHARPTON: This is not about class warfare. It`s about leveling the
playing field, something Republicans like Mitch McConnell still aren`t
willing to do.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: Let`s acknowledge the fact
that we live in a two-party system, and that if we`re going to make
progress, we need to do it on a bipartisan basis. This is how divided
government works, through real cooperation and a search for common ground
and solutions.

(END VIDEO CLIP)

SHARPTON: Common ground? Common ground? His idea of common ground
is taking up 10 House bills aimed at deregulating and five aimed at helping
oil companies. That`s not common ground.

And this party`s presidential candidates, they see the world the same
way.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Corporations are people, my
friend. We can raise taxes -- of course they are

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you saying (INAUDIBLE) Wall Street protesters?

CAIN: Yes, go home and get a job!

(APPLAUSE)

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Who on this stage would walk away from that deal?
Would you raise your hand if you feel so strongly about not raising taxes,
you`d walk away on the 10-1 deal.

(END VIDEO CLIP)

SHARPTON: For those GOP candidates, these protests over inequality
simply don`t matter, and that`s why President Obama`s message has been
resonating so much.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It`s time for folks
running around spending all their time talking about what`s wrong with
America to spend some time rolling up their sleeves to help us make it
right.

Somebody is fighting for them. Somebody is looking out for them.
Somebody is rooting for them.

We are going to make the dream that all Americans share real once
again, and that starts right now. It starts with you.

(APPLAUSE)

(END VIDEO CLIP)

SHARPTON: Joining me now is Congresswoman Jan Schakowsky, Democrat
from Illinois, and MSNBC contributor Melissa Harris-Perry, a professor at
Tulane and a columnist for "The Nation."

Congresswoman, I`ve said I disagree with what has gone on today. I`ve
worked with some of these mayors around the country. I`ve stood with them.
To some of my friends in the progressive community disagreeing with me, I
stand against them now when I disagree with them.

Is there a new movement for fairness in this country that Republicans
just don`t get, Congresswoman?

REP. JAN SCHAKOWSKY (D), ILLINOIS: There`s no question about it, and
I believe that movement is unstoppable, regardless of what mayors may do.
And you said it right. The conversation has changed, and the Occupy Wall
Street and Occupy around the country has made a real difference.

Now they are talking about, even on the House floor, 99 percent versus
the one percent, and, of course, the Republicans are relentlessly defending
that one percent. "It`s the inequality, stupid," is really the message of
the Occupy movement, and I think most Americans -- I know most Americans
get it. Eight-one percent and sometimes more think that we should be
taxing millionaires and billionaire because it`s fair.

SHARPTON: Well, Congresswoman, let me just put a point right there,
and I`ll let you finish, to show that you`re right that they have changed
the conversation, and that`s what protest is all about, changing the
climate, changing the conversation. Look at this full screen where there
are signs the GOP could cave on taxes, even diehards like Tom Coburn.

Now it says -- Senator Coburn has said this, "From tax write-offs, for
gambling losses, vacation homes, and luxury yachts, to subsidies for their
ranches and estates, the government is subsidizing the lifestyles of the
rich and the famous. Multimillionaires are even receiving government
checks for not working."

This is Senator Tom Coburn. Now, this is certainly not you or me, but
this is clearly because the climate is changing --

SCHAKOWSKY: But, wait. Let me add a note of caution here.

I congratulate Senator Coburn, who I was on the Simpson-Bowles
Commission with, for saying that. But I fear that the Republicans now are
trying to lure Democrats into putting proposals on the table by saying
that, yes, we will put taxes and we will, you know, go after the rich, to
put that on the table. But at the end of the day, Grover Norquist has
already said they have agreed privately that they are not going to raise
taxes.

So I want Democrats to be very careful not to say, OK, well, then
we`ll do something about entitlements, which I don`t think should be on the
table anyway, and then the Republicans say, oh, never mind, we didn`t
really mean it about going after the wealthy in our country.

SHARPTON: So, Professor Perry, we shouldn`t trust them? There may be
some switch and bait here.

PROF. MELISSA HARRIS-PERRY, TULANE UNIVERSITY: Well, sure. I mean,
the fact that all of this is occurring in the context of the super
committee and their deadline, their constantly moving deadline, should
worry us. But look, what I really appreciate about how you frame this is
that this is about some fundamental American principles, and I think this
is where the GOP is really getting it wrong when they talk about this class
warfare notion.

You know, when I teach my intro American politics classes, there are
two things that consistently come up. One is that Americans don`t mind
economic inequality when that economic inequality seems to be based on
positions of merit. So it`s not class warfare in the sense that, you know,
the Occupy movements or anyone else is claiming everyone should have
exactly the same income or drive exactly the same car or any of those kinds
of scary notions that we hear the GOP trying to push back on.

It`s rather that the current inequality is so extreme, and class
mobility is such a dream at this point, the idea that someone could work
hard from poverty and move into the middle class, or from the middle class
and into wealth, that that has disintegrated so fully, that we know that
this inequality is in the merit-based. This inequality is about
fundamentally entrenched interests protecting themselves.

And then the second big thing is that in a democracy, the key element
of what makes a democracy not an autocracy, not a totalitarian system, is
that winners don`t take all. Just because you win in a democracy, you
still have to share with the so-called losers in the democracy.

SHARPTON: Right.

HARRIS-PERRY: Right? If you think you`re always going to be a
winner, then you should prefer a totalitarian system.

Democracy is for those who have fewer resources, less voice, less
opportunity, because in a democracy, we are all meant to be sharing not
only our resources, but our power. That`s how this system is meant to
work.

SHARPTON: And see, you know, Congresswoman, that`s why I love having
Melissa Harris-Perry on. She`s so smart. But bringing it right down where
common guys like you and me are, where are the jobs? How are we going to
get these people to get up off of this no tax pledge and provide us with
some economic balance where people can get jobs?

SCHAKOWSKY: Again, I think that the conversation has gone way past
this obsession that we had before, the country had before with deficit
reduction. I always thought that was pretty fake anyway, because people
don`t want to see their Medicare or their Social Security cut.

We`ve moved on to jobs now. That`s the proper obsession right now
with the American people, because they get it.

If there are jobs, then our economy grows. But you`ve seen it. The
Republicans have just said no. No, no, and more no.

They are betting against the economy. They want the economy to fail
so that they can defeat Barack Obama. And that`s the sorry state that the
Republicans are in right now. And so we just need to make it clear that
we`re going to continue to fight to put America back to work, and if they
keep pushing against us, it`s at their own peril.

SHARPTON: Now let me go back to you, Professor Perry. Let me ask you
this, Melissa.

When you look at this poll where you see income inequality is a problem, 87
percent Democrats say it is, 74 percent likely voters, 64 percent
Republicans say it`s a problem.

HARRIS-PERRY: Yes.

SHARPTON: The politics of it -- I understand the framework, and
you`re right, that we`ve got to understand the broad context of democracy
versus totalitarianism, but the politics of it that we`re dealing with on
Election Day of 2012 is, how can the Republicans run against the fact that
even just about two-thirds of their own party is saying that this
inequality is a serious issue to them?

HARRIS-PERRY: Right. Well, look, and this is the stunning sort of
just juncture in their heads.

So, you have on the one hand, Mitt Romney saying corporations are
people because they are made up of people who have jobs. Well, I`m not
sure if they have noticed, but, in fact, all of these government agencies
that they are going to cut -- you know, we had Governor Perry saying he was
going to cut Education, Commerce and -- something else.
Right?

I mean, the fact is that there are people who work in each of those.
And, in fact, when we look at what`s happened in terms of unemployment in
the past couple of years, since the Republicans have come into control in
the House, and in so many state legislatures, what`s happened is that
private sector jobs have been offset by the loss of public sector jobs --

SHARPTON: That`s right.

HARRIS-PERRY: -- because they have been cutting these so-called
wasteful government spending. Wasteful government spending, my friends,
that`s jobs. Those are working people.

And so, you know, the congresswoman is right. Part of this is about
entitlements and the creation of our safety net, but the other critical
part of it here is to recognize that when you start talking about, for
example, eliminating the Department of Education, you are talking about
eliminating thousands of jobs.

SHARPTON: Oh, absolutely.

HARRIS-PERRY: And we have to say it that way.

SHARPTON: Well, and it`s reverse Robin Hood.

I want to thank both of you. And that is why -- let me say this,
Congresswoman and Professor Perry -- that is why protesters have made a big
difference. They have changed the conversation.

I said when I started this show, when you walk in 30 Rockefeller
Center, there are two hours now. On the NBC side, there`s Al Roker. He
gives you the climate. On the MSNBC side, there`s Al Sharpton. I`m with
those that change the climate.

Congresswoman Jan Schakowksy and Melissa Harris-Perry, thanks for
coming on the show tonight.

HARRIS-PERRY: Thanks, Reverend.

SCHAKOWSKY: Thank you, Reverend Sharpton.

SHARPTON: Ahead, Herman Cain`s latest implosion. It should be great
news for Willard, right? Not so fast. They are just not that into him.

Plus, it`s on. The fight to recall Wisconsin Governor Walker is under
way. We`ll go there live.

And the alleged Penn State molester speaks out as more suspected
victims come forward. We`ll talk to someone who worked very closely with
the coach.

You`re watching POLITICS NATION on MSNBC.

(COMMERCIAL BREAK)

SHARPTON: As we`ve been reporting, there`s a movement brewing in this
country. It is a backlash against the right wing`s extremist agenda, an
agenda fueled in Wisconsin back in February, when Governor Scott Walker
waged war on the middle class, signing his law to ban collective bargaining
for public workers.

Wisconsinites vowed to fight back. They vowed to stand up for what`s
right, and they vowed to recall Walker.

Governor Walker, your day has come.

Just after midnight this morning, Wisconsinites officially launched
their campaign to make good on that vow. A manufacturing worker filed the
official petition in Madison this morning.

(BEGIN VIDEO CLIP)

JULIE WELLS, WISCONSIN RESIDENT: Hi. I want to take on a petition to
recall Governor Walker.

It`s just surreal. It feels like a dream. Like I said before, this
is something I`ve waited all year to do, never knowing that it was actually
going to be me that got to do it. And that`s a real proud moment.

(END VIDEO CLIP)

SHARPTON: Rallies continued today all over the state to collect more
than half a million signatures in 60 days and force an election next year.
The goal, kick Scott Walker back into private life.

Joining me now, two men who are both key to the recall efforts, state
senator Jon Erpenbach, a Democrat from Madison, and Mike Tate, chairman of
the Wisconsin Democratic Party.

Thank you both for joining me tonight.

JON ERPENBACH, WISCONSIN STATE SENATOR: Thanks, Reverend.

MIKE TATE, CHAIRMAN, WISCONSIN DEMOCRATS: Thank you.

SHARPTON: Mike, you helped organize the recall effort. Let`s start
with you. How confident are you?

TATE: Well, I am as confident as confident can be. We do have a big
task in front of us. I don`t want to overstate how much work it is to
gather at least 550,000 signatures, more likely 600,000 to 650,000
signatures.

But let me just say we`ve had over 10,000 individuals download the
petitions off our Web site today. We`ve had over 100 events in just the
last 24 hours, since midnight, to gather signatures. And we`ve seen people
signing from places like Baraboo and Black River Falls, and really all
corners around this state.

SHARPTON: Now, let me ask you, Mike -- this is an awesome task. I`ve
been an organizer all my life, still head National Action Network. So,
when the rubber meets the road and you`ve got to deliver numbers, let me
show people around the country the task that you have taken on yourselves
in Wisconsin.

You need 540,208 signatures, valid signatures, by January 13th, 9,000
signatures a day.

TATE: Yes.

SHARPTON: But with the outpouring of support, and being able to
assign them, break them down, and organize them properly, it can be done.

TATE: It absolutely can be done, and the Democratic Party, working in
conjunction with groups like United Wisconsin, are going to get that done.
We`ve got 30 field offices around the state.

And I know as an organizer, Reverend, you would appreciate the very
good work that`s being done to make sure that we are gathering the data we
need, analyzing the signatures, making sure we`re handing in valid
signatures. And I believe that in 60 days, we`re going to hand in more
than enough signatures to trigger the recall of Governor Walker.

And frankly, it`s very exciting. It`s exciting times and it`s
historic.

SHARPTON: Now, Jon, one of the reasons that people around the country
take this effort seriously and believe the organizing ability is there is
what you`ve already done. You have successfully recalled two state
senators earlier this year.

State senator Randy Hopper, and state senator Dan Kapanke have already
been successfully recalled. So you are not just guys out there just
shooting in the wind. You`ve shown your ability to go up against people
that just won last year. You were able to penetrate them, two in the state
senate, and now we`re going after the governor next year.

ERPENBACH: Right. And the simple point, Reverend, is this is not an
artificial movement. This is as grassroots as grassroots can possibly be.

Thousands of volunteers throughout the state of Wisconsin, as Mike has
pointed out, have hit the road with petitions, and it doesn`t matter. Up
in Baraboo, there was a line to sign this morning at 10:00 a.m. On the way
out from the capitol out here, to the west side of Madison, I saw five or
six places with people holding up signs saying, "Sign the recall petition
here."

And these are all just volunteers. So there`s no doubt in my mind
that, yes, this is a tough task, a lot of signatures. But at the same
time, I do think -- I think we`ll be successful.

SHARPTON: Now, let me -- for people around the country that may not
remember just a couple of months ago, Mike, the reason why it is so
important that Walker be recalled is explain what his bill actually called
for in Wisconsin, what he immediately did. He was elected, and he
immediately declared war on the middle class by pushing through what in the
senate, in the state senate there?

TATE: Well, are you asking me, Reverend? I`m sorry.

SHARPTON: Yes. I`m talking to you, Mike.

TATE: OK. He proposed Act 10, which effectively eliminated
collective bargaining rights for all of our public employees, our school
teachers, and our public service workers. And beyond that, he slashed
their pension and benefits.

But even -- you know, that`s why this movement started. I`m sure
Senator Erpenbach could even go into more detail than me. That`s how this
movement started.

But we have seen over $1 billion cuts to public education. We have
seen health care slashed. We just found out this last week that he`s going
to be kicking 30,000 children off their state-run health insurance at the
end of this year. There have been just actual travesties that are going to
be happening in our natural environment.

There are a host of reasons why Scott Walker should be recalled from
office, and I think the most important point here, Reverend, is he didn`t
campaign on any of these things.

SHARPTON: No, he did not get elected saying that, that`s correct.

TATE: He didn`t talk about it.

SHARPTON: That`s the important point.

TATE: And that`s a really critical point.

SHARPTON: That`s the key point here.

Jon, let me ask you real quickly -- he`s trying to give a different
spin on this. The Koch brothers group Americans for Prosperity, they are
running this ad of misinformation. Let me show you quickly.

(BEGIN VIDEO CLIP)

NARRATOR: They told us the sky would fall and Wisconsin would end as
we know it, but the sky is still there and Wisconsin is stronger than ever.
We cut spending by asking government employees to contribute to their own
pensions and benefits, like everyone else, and reining in abuses of
collective bargaining privileges to put taxpayers back in control.

(END VIDEO CLIP)

SHARPTON: This is funded by the billionaire Koch brothers, Jon.
Misinformation? Is it misinformation?

ERPENBACH: Well, yes, it`s misinformation, first of all. But more
importantly, the Koch brothers don`t live in Wisconsin. They do not live
here, but what they want to do is they want to come in and they want to
take over our schools, and they want to take over all the public sector
jobs that are out there.

So, yes, it`s misinformation. There was never abuses of collective
bargaining like the ad said.

But, again, what Scott Walker is going to do is hide behind hundreds
of millions of dollars of money coming in from outside the state of
Wisconsin to try and influence this. But in the end, we`ll get the
signatures, and in the end, I do believe we`ll beat Governor Walker in a
recall election.

SHARPTON: Well, the reason they invest from the outside, the same
reason why people support you from the outside, is if it -- they get away
with it in Wisconsin, it has national ramifications. So we`ve got to do
what we`ve got to do.

ERPENBACH: Absolutely.

SHARPTON: State Senator Jon Erpenbach --

ERPENBACH: Absolutely. It has to stop here.

SHARPTON: -- and Mike Tate, thank you both for your time tonight.

Ahead, speaking of unpopular governors, in Ohio John Kasich allows
dangerous and unhealthy drilling in public parks. We`ll tell you why he`s
for it.

And the latest Republican video to go viral has everyone talking, but
we`re actually learning more about Willard Mitt Romney because of it.
We`ll explain ahead.

(COMMERCIAL BREAK)

SHARPTON: We know ex-Fox News host and Ohio Governor John Kasich for
his budget-slashing and union-busting, but he`s also a crony of the oil and
gas industry. And it turns out the feeling is mutual. This summer,
Governor Kasich signed a law to allow oil and gas drilling in Ohio`s public
parks. Companies can now use a process called fracking to extract natural
gas under Ohio parkland. Environmental and consumer groups say, fracking
is a major health risk that contaminates ground water and air. Check out
what happens in the documentary "grassland."

(BEGIN VIDEO CLIP)

UNIDENTIFIED MAN: Wow. Jesus Christ.

(END VIDEO CLIP)

SHARPTON: And just last week, a Pro Publica investigation turned up
some scary news about fracking in Wyoming. Water wells near fracking sites
have turned up, quote, "High levels of cancer-causing compounds and at
least one chemical commonly used in fracking."

So, in Wyoming fracking is linked to cancer-causing chemicals in water
supply. But in Ohio, it`s still speed ahead for fracking. In public
parks, thanks to Governor Kasich. Kasich has received more than $200,000
from the oil and gas industry in the last decade, more than any other Ohio
politician. In fact, Kasich`s gotten more money from big oil and gas than
even House Speaker John Boehner, even if fracking`s dangerous for Ohio
residents, it sure is good for Governor Kasich. Did he think we wouldn`t
notice his ridiculously misplaced priorities? Nice try, Governor, but we
got you.

(COMMERCIAL BREAK)

SHARPTON: Welcome back to "Politics Nation." The middle class
movement sweeping America put the idea of fairness on the front page, but
before the crowds began their nationwide protests against the one percent
who control all the wealth in this country, there was just one woman
leading that fight. Elizabeth Warren, the Harvard Law School professor had
the guts to stand up to Wall Street`s corporate greed and fight for the
middle class.

(BEGIN VIDEO CLIP)

ELIZABETH WARREN, PROFESSOR, HARVARD LAW SCHOOL: Let`s face it.
Something`s badly broken in America right now. Washington really is wired
for the big corporations, for those with power.

There needs to be at least one person in the room who asks the
question, how will this affect Americans families?

My life`s work has been fighting for middle class families. It has
been about standing up to powerful interests.

(END VIDEO CLIP)

SHARPTON: She`s taking that message to rally the base in her
Massachusetts Senate race drawing massive crowds. The GOP is scared so
they are trying to smear her.

(BEGIN VIDEO CLIP)

UNIDENTIFIED WOMAN: Elizabeth Warren sides with extreme left
protests. At Occupy Wall Street, protesters attack police, do drugs and
trash public parks. They support radical redistribution of wealth and
violence.

(END VIDEO CLIP)

SHARPTON: But Elizabeth Warren isn`t backing down. She`s ready for a
fight. Democrats, are you taking notes, because this is how you win an
election.

Joining me now someone who knows how to fight for the middle class,
former congressman from Florida, Alan Grayson, and Jonathan Capehart,
columnist for the "Washington Post" and an MSNBC contributor. Congressman,
let me start with you. Are Republicans feeling the heat from Warren and
the middle class movement?

FMR. REP. ALAN GRAYSON (D), FLORIDA: Yes, and so are their backers
and the people who control them, Wall Street, because Elizabeth Warren is
the kind of person that Wall Street just doesn`t know how to deal with.
She doesn`t have a price tag on her. She can`t be bought. She spent her
whole life doing good things for the middle class, and they can`t buy her
off so they just don`t know what to do.

SHARPTON: Now, when you see distorted ads like that and then you see
the support that we`re seeing with the crowds coming out to rallies,
Jonathan, it`s no wonder that Scott Brown has become kind of in many ways
overly aggressive with his ads or his supporters with their ads. And he`s
even said now he`s going to vote interestingly enough for the nominee for
consumer affairs in the Senate, something that he was not going to do or no
one thought he was going to do. Is this him trying to have it both ways,
trying to condemn her and move to the center at the same time because he
senses the climate changing?

JONATHAN CAPEHART, THE WASHINGTON POST: The short answer is yes.
Senator Brown has done this thing several times since getting to
Washington of -- of bucking the republican leadership on key issues, he`s
very mindful, Senator Brown that is, is very mindful that he`s holding a
seat that was held by a democrat for decades. The late Senator Ted
Kennedy that he won in a special election and that to win that seat
outright for a full six-year term, he`s really going to fight really hard
to win that seat himself. So his attacking to the center, if you will, is
something that he`s been doing for a while. Now going aggressively against
Elizabeth Warren, I mean, he has to do that if he wants to keep that seat
because Elizabeth Warren, unlike the person he ran against last time, the
Massachusetts Attorney General, Elizabeth Warren is showing that she`s --
she doesn`t view this race as a cakewalk. She is fighting tooth-and-nail
to take that seat from Scott Brown.

SHARPTON: Now, congressman, when you look at the campaign funds, Mr.
Senator Brown has gotten money from Wall Street, Goldman Sachs, $60,500,
Barclays, $39,499, Paulson & Company, Morgan Stanley and others, then when
you look on the other side where Elizabeth Warren has received -- her
campaign has raised $3.15 million, but most of them donations of $100 or
less, many of them which is 96 percent of those that contributed and many
of them from around the country, does this put the senator in the position
he`s in where he can`t really fight those that are financing his campaign?

GRAYSON: Well, I think that he, like most of the Republicans, and
frankly some of the Democrats, has been completely compromised by the fact
that they take money from special interests and then sell off the law in
pieces and give these special interests bailouts and government contracts
and tax breaks, and you compare that to Elizabeth Warren`s contribution
base and frankly my contribution base as well. We had 100,000 people come
to our Web site, congressmanwithguts.com and make contributions that
averaged $38. Now you see the same phenomenon with Elizabeth Warren`s
campaign, and the good thing about that it`s all clean money. She owes
nothing to anybody but the voters and all these people contributing to her
campaign and to my campaign understand that what they are getting for that
is simply good government, not tax breaks, not bailouts, not special
favors, not regulatory relief, but just good government. And it represents
a whole new paradigm in American politics that can dramatically change
American politics. I`m very happy to see her doing it.

SHARPTON: Now Jonathan.

CAPEHART: Yes.

SHARPTON: Is this the way that Democrats need to run an election, by
fighting, by standing their ground, by not equivocating, by not looking to
go to the center but by standing where they are for the American people?

CAPEHART: Well, as the saying goes, all politics is local, and when
it comes to that Massachusetts Senate seat, what`s happening there and the
two people involved, you know, the fighting is -- you know, just the right
way to go. And on the presidential level, as we`re seeing, as President
Obama has, you know, taken a more aggressive stance, both to Congress and
to the republican leadership in Congress, the American people are
responding because they have -- the president is doing what he -- what they
would have been asking him to do all along which is to fight.

Again, on the ground in particular races, taking that fight directly
to Republicans and to republican candidates, there well might work, and
given the mood of the country, whether the person is someone who is in
favor of Occupy Wall Street or the person is in favor of, you know, what
the Tea Party has been trying to do over the last three years, clearly the
American people are angry. They want solutions, and they want to send
people to Washington who they believe will fight for their interests once
they get here and not put their own personal interests ahead of theirs.

SHARPTON: Congressman Grayson, usually when you see success, you see
there is reaction from the other side. I said before and showed before how
it seems that Mr. Brown`s supporters have overreacted. Let me show you one
heckler that went after Miss Warren and how she handled it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MAN: I think I saw you on television taking credit for
the Occupy Wall Street movement.

WARREN: I`m very sorry to hear that you got out of work. I`m also
very sorry that the recent jobs bill that would have brought 22,000 jobs to
Massachusetts did not pass in the Senate. I`m so sorry.

(APPLAUSE)

I`ve been protesting what`s been going on on Wall Street for a very
long time.

UNIDENTIFIED MAN: Well, if you`re the intellectual creator of that
so-called party, you`re a socialist whore. You`re a socialist whore and I
don`t want anything to do with you.

(END VIDEO CLIP)

SHARPTON: This kind of language, this kind of outrage only shows in
many ways that maybe somebody is being successful up there, Congressman,
wouldn`t you think?

GRAYSON: Well, sure. In fact, her whole campaign is a reaction to
stupidity and selfishness on the part of the right wing because she
wouldn`t be running for Senate right now if they had given her the job she
so richly deserved which is head of the agency that she went and the
created. She had the concept for a consumer financial protection bureau
and had it incorporated in the legislation, Dodd/Frank legislation that my
committee passed last year.

SHARPTON: Yes.

GRAYSON: And they wouldn`t let her have that job because she would be
too good for it and that`s why she`s running for the Senate now, because
the Republicans blocked her and her candidacy is now going to cost them a
Senate seat.

SHARPTON: Well, I can tell you this Congressman on two light notes,
one, when that young man after using that insult to her walked out. He
walked to her door that was closed, as an old protester, you always check
your exit and I happen to know this week, it`s Jonathan Capehart mother`s
birthday, I`m glad to see he shaved for the occasion.

(LAUGHTER)

Former Congressman Alan Grayson and Jonathan Capehart. Thank you both
for your time.

GRAYSON: Thanks, Rev.

SHARPTON: Ahead, there`s more to Herman Cain`s awkward interview.
You won`t believe what he said about collective bargaining. Plus, the
alleged Penn State molester speaks out and more suspected victims come
forward. We`ll talk to someone who worked very closely with the coach,
next.

(COMMERCIAL BREAK)

SHARPTON: We want to get your take on the stories of the day, every
day. If you haven`t already, like us on Facebook to join "Politics Nation"
family and tell us what you think, and be sure to follow us on twitter,
too, that`s @politicsnation.

(COMMERCIAL BREAK)

SHARPTON: The reality show that is the republican race continues to
give us more unforgettable moments. The big water cooler talk today was
all about Herman Cain.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: So you agreed with President Obama on Libya, or
not?

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: OK, Libya. Got all this
stuff twirling around in my head. Specifically what are you asking me, did
I agree or not disagree?

UNIDENTIFIED REPORTER: Would you favor collective bargaining for
federal employees?

CAIN: They already have it, don`t they? Yes, the already have it.

UNIDENTIFIED REPORTER: No, they don`t.

(END VIDEO CLIP)

SHARPTON: So, with Cain`s complete lack of knowledge on the issues
and the sexual harassment scandal hovering, it should be good news for
Willard, right? After all, Bachmann`s had her time in the spotlight and so
did Perry, so Willard should be running away with it, right? Wrong. Newt
Gingrich is surging. A new poll out today has Newt with a ten-point lead
over Romney. So, the guy whose spent his life campaigning is losing to a
guy who was written off months ago. We remember the headlines. Gingrich
staff resigns. Gingrich campaign implodes. Newt Gingrich on a lovely
cruise. He`s out cruising over campaigning. Gingrich owed six figures to
Tiffany`s. We all made a mockery of that one. They are looking to anyone
but Willard, but who will that be? Paging Ron Paul. Paging Rick Santorum.
Your party needs you. And I`m rooting for you guys. I really am.

(COMMERCIAL BREAK)

SHARPTON: Welcome back to "Politics Nation." The man at the center
of the Penn State scandal is speaking out. Former Penn State assistant
Coach Jerry Sandusky, charged with 40 counts of sexual abuse, on minors,
spoke with NBC`s Bob Costas last night.

(BEGIN VIDEO CLIP)

BOB COSTAS, NBC ANCHOR: A grand jury report contains specific detail.
There are multiple accusers, multiple eyewitnesses to various aspects of
the abuse. A reasonable person says where there`s this much smoke, there
must be plenty of fire. What do you say?

JERRY SANDUSKY, FORMER PENN STATE ASSISTANT COACH: I say that I am
innocent of those charges.

COSTAS: Innocent, completely innocent and falsely accused in every
aspect?

SANDUSKY: Well, I could say that, you know, I have done some of those
things. I have horsed around with kids. I have showered after workouts.
I have hugged them and I have -- I have touched their leg, without intent
of sexual contact, but -- so if you look at it that way, there are things
that wouldn`t, you know, would be accurate.

COSTAS: What did happen in the shower the night that Mike McQueary
happened upon you and the young boy?

SANDUSKY: OK. We were showering, and horsing around, and he actually
turned all the showers on and was actually sliding across the -- the floor,
and we were -- as I recall possibly, like snapping a towel, horse play.

COSTAS: What are you willing to concede that you`ve done that was
wrong and you wish you had not done it?

SANDUSKY: Well, in retrospect, I, you know, I shouldn`t have showered
with those kids, you know.

COSTAS: That`s it?

SANDUSKY: Well, that -- yes, that`s what hits me the most.

COSTAS: Are you sexually attracted to young boys, to underage boys?

SANDUSKY: Am I sexually attracted to underage boys?

COSTAS: Yes.

SANDUSKY: Sexually attracted. You know, I enjoy young people. I
love to be around them, I -- but, no, I`m not sexually attracted to young
boys.

(END VIDEO CLIP)

SHARPTON: Today we`re learning close to ten additional suspected
victims have come forward to authorities. This scandal has dominated the
headlines. It`s all anyone can talk about, but the ugly truth is it
happens every day all over the country. Let this be a teachable moment to
help victims, especially under-aged victims of sexual abuse. If you`re a
victim, you can come forward. No victim should ever suffer in silence.
Questions come out of the interview we saw with Sandusky. The night of
McQueary I question. Why were you in the shower with a 10-year-old in the
first place out there at Penn State? The kids don`t play ball there. Why
were you all working out there? Why only one kid? There`s a lot of
questions. Maybe the courts will give us the answers.

Joining me now is Patty Coble. For ten years she`s volunteered with
Sandusky`s children`s charity, the second mile. She left the organization
the day the story broke. Patty, thank you very much for joining me. Tell
us about Sandusky. What was he like, and how did the children react to
him?

PATTY COBLE, FORMER SANDUSKY COLLEAGUE: He was a very, very nice
personable man. All of the kids would look up to him. They would be so
excited that they would be standing beside Jerry Sandusky and have an
opportunity to meet football players, NFL players and someone was actually
taking an interest in these children so they.

SHARPTON: So, in many ways, what attracted them is that he could
introduce them to some of their heroes. He could bring them into a life
that they don`t ordinarily have and there are holes in their life, and
their environment.

COBLE: Absolutely, absolutely. They were getting an opportunity of a
lifetime.

SHARPTON: And it was because of that they looked up to him and in
many ways went along with other things and the parents felt they were
giving their child, and the reason I`m going through this is I grew up like
that. My mother gave me mentors. Sometimes people that come from
different backgrounds are glad to have someone that will do for your
children what you can`t do.

COBLE: Right, right.

SHARPTON: Now, you didn`t know of any of his improper behavior, but
you could attest to the admiration that the children had for him and the
kind of affinity that he tried to develop with some of them?

COBLE: Absolutely. It was -- it was crystal clear, you know. These
-- these young people, you know, they were -- they were very, very happy
and excited to be in that position of being with, you know, Jerry Sandusky.

SHARPTON: Well, I can say that it is certainly something
understandable for the children but more egregious if in fact he is guilty
as charged by all of these people. Let me show you one more thing that he
said as we prepare to leave.

(BEGIN VIDEO CLIP)

COSTAS: There were hundreds, if not thousands, of young boys you came
into contact, but there are allegations that at least eight of them were
victimized.

SANDUSKY: I would guess that there are many young people who would
come forward, many more young people who would come forward and say that my
methods and what I had done for them made a very positive impact on their
life. And I didn`t go around seeking out every young person for sexual
needs that I`ve helped. There were many that I didn`t -- I hardly had any
contact with who I have helped in many, many ways.

(END VIDEO CLIP)

SHARPTON: Patty Coble, you and many that were involved there saw
children that needed help. It would be one of the most shameless acts if
what they got was what he is now charged with, but I thank you for coming
on tonight. Patty Coble, thanks.

COBLE: You`re welcome. Thank you for the opportunity.

SHARPTON: Thank you for watching. I`m Al Sharpton. "HARDBALL"
starts right now.

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

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