updated 2/6/2012 10:02:32 AM ET 2012-02-06T15:02:32

Guests: Ezra Klein, Robert Reich, Bob Shrum, Terry O`Neill, Goldie Taylor, Mike Papantonio, Josh Fox


ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW.

President Obama is on the roll. American jobs are roaring back. And
wouldn`t you know, Republicans they don`t have anything to do with it.

This is THE ED SHOW -- I got a lot to say tonight. Let`s get to work.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The economy is growing
stronger. The recovery is speeding up.

SCHULTZ (voice-over): Good news for the country means bad news for
the Republicans.

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: And while
unemployment rate is down slightly, the American people are still asking
the question, where are the jobs?

SCHULTZ: We`ll go inside the numbers and the politics with Ezra Klein
and Robert Reich.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I`m not concerned about the
very poor. I misspoke. I wish I wouldn`t have said it that way.

SCHULTZ: Mitt Romney is trying to cover his tracks. But he`s only
making it worse. Bob Shrum on Romney`s downward spiral.

The Komen Foundation reverses course on funding for Planned
Parenthood. Or was it a head fake? Terry O`Neill of the National
Organization for Women is back with the latest.

And "Gasland" director Josh Fox got arrested Tuesday.

JOSH FOX, FILM DIRECTOR: This is a public hearing I`m within my First
Amendment rights.

SCHULTZ: Today, Josh Fox returns, to talk about breaking news from
the Obama administration on fracking regulations.

(END VIDEOTAPE)

SCHULTZ: Good to have you with us tonight folks. Thank for watching.
I want to tell you of the top, there are some things happening in Wisconsin
we`ll get to later on in the show.

All right. First tonight, we show this chart a lot. I love charts.
It really tells a story, gives you a snapshot and tells you what the trend
is. We show it a lot, because the private sector job growth under
President Obama and President Bush tell a completely different story.

Now, you may notice something different about it tonight. There is --
oh, yet another blue bar there at the end of the chart.

You see, January was the 23rd consecutive month of private sector job
growth. This is where it went. It started right here after the stimulus
package and for 23 straight months, what have we seen? Private sector job
growth.

The job force added 243,000 jobs in the month of January.
Unemployment dropped to 8.3 percent. May I tell you that this is the
lowest unemployment number since President Obama`s first month in office?

Now I`m just asking, you know, I haven`t given any commentary yet --
is this good news? These are facts now. These are hard numbers -- numbers
put out by the Bureau of Labor Statistics.

Manufacturing, we got another good piece of news for you -- 50,000
jobs were added in January, 50,000 jobs.

I want to go on record point out to you tonight that today, when the
Republicans on Capitol Hill responded to these numbers that were coming
out, no where and we`ve checked the script twice, nowhere did they say
anything about manufacturing, nowhere did they say anything about 50,000
jobs being created. Why? Well, heck, President Obama talked about it in
the State of the Union. They can`t give him any back-up.

That is the highest monthly gain in manufacturing jobs since August of
1998. This is good news for America, isn`t it? Good news for America is
usually translating to good news on Wall Street.

Well, how about this? The Dow closed at the highest level since May
of 2008. Look at that, 12,862.23. That is a dandy of a number.

President Obama sees the economy on the rebound and he should. Today,
he told Congress, don`t mess it up.

(BEGIN VIDEO CLIP)

OBAMA: The recovery is speeding up. And we`ve got to do everything
in our power to keep it going. So I want to send a clear message to
Congress: do not slow down the recovery that we`re on. Don`t muck it up.
Keep it moving in the right direction.

(END VIDEO CLIP)

SCHULTZ: Keep it moving in the right direction. The recovery is
happening.

Just think about this, there are 243,000 families that didn`t have
this happen to them in December. I wonder what kind of Christmas and
holiday they had? I wonder what kind of New Year they had?

Well, in January of 2012, they got a job. Isn`t that great?

Republicans in Congress can`t take credit for it because they`ve done
everything they can to obstruct economic progress for the past three years.
They want President Obama`s policies to fail so that they can win in
November and he will lose.

His policies, well, they are succeeding and the only thing Republicans
can do is pretend the good economic news -- well, it just doesn`t exist.

(BEGIN VIDEO CLIP)

REP. BILL FLORES (R), TEXAS: The president`s policies have failed.
They are holding back this economic recovery.

REP. JEB HENSARLING (R), TEXAS: Again, the president`s policies have
failed. It`s one of the reasons that regrettably we see the politics of
division, but the American people don`t want a division. They want more
jobs.

BOEHNER: What I`m suggesting to you today is that we can do better.
You know, the American people are still asking the question, where are the
jobs?

(END VIDEO CLIP)

SCHULTZ: Do they wake up every morning and wonder what negative thing
they can say today about America? I mean, the Republicans as of late are
starting to sound like Baghdad Bob. I mean, they are in total denial of
numbers that are put up on the board, and they can`t say doggone it, we are
going in the right direction, this is good for America, this is good for
243,000 families out there. And we can do more.

But they just can`t do it. It`s not in their DNA.

There are more jobs in America today than at any point in the last
three years. Boehner couldn`t bring himself to saying that. He does bring
himself to say that`s just not good enough.

(BEGIN VIDEO CLIP)

BOEHNER: There`s certainly some positive news here. But the point
we`re making is that we could do a lot better. If the president will work
with us on the bills that have passed the House, that are waiting action in
the Senate, the American economy could do better.

(END VIDEO CLIP)

SCHULTZ: Yes, really? Is that a fact? Those bills passed?

How what about the ones you obstructed?

This is going to be the standard Republican talking point from now
until the election. We can do better.

Well, Mitt Romney he got the memo, he said in a statement today,
unfortunately these numbers cannot hide the fact that the President Obama`s
policies have prevented a true economic recovery, we can do better.

But even Newt Gingrich was forced to admit that we are doing better.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I think he will get some
limited credit and depends how much the economy recovers, and what the rest
of the year looks like.

WOLF BLITZER, CNN: But you don`t think as of now he deserves any
credit, is that what you`re saying?

GINGRICH: No, Wolf, it`s irrelevant. Give him credit. If it makes
you happy, give him some credit.

(END VIDEO CLIP)

SCHULTZ: It`s irrelevant the 243,000 people got a job last month.
All they do is throw at us, he can`t raise taxes on the jobs creators.
Guess what? Let`s take a look at corporate boys here.

Look at the corporate taxes last year, you know what they did? They
amounted to just over 12 percent of profit for U.S. corporations. My
friends, this is the lowest level in 40 years!

The Republicans ought to be just dancing in the street over this.
Unemployment is down. Private sector job growth is growing. Public sector
jobs are going down. That`s what they really want.

Corporate taxes are at record lows. Republicans you ought to be
loving this stuff.

But they can`t say anything positive about the president of the United
States. They can only root for the economy to fail. It`s really kind of
sad, isn`t it?

And you know what? We`re going to get positive numbers next month and
this number right here is probably going to be the same proportionately for
the whole year, why? Because President Obama has not raised your taxes.
In fact, he went along with the Bush tax cuts, didn`t he? And some
Democrats did it too.

Just team up for once, will you? You can`t do it. It`s election
year.

Get your cell phones out. I want to know what you think. Tonight`s
question, will Republicans ever give President Obama the credit he deserves
for the economy? Text A for yes, text B for no to 622639. And you can
always go to our blog at Ed.MSNBC.com. We got the results coming up later
on in the show.

I`m joined tonight by Robert Reich, former secretary of labor on the
Clinton administration and now professor at U.C.-Berkeley and author of the
book "Aftershock."

Actually, the Republicans are shocked at these numbers, are they not,
Mr. Reich? How much longer can the Republicans get away with just taking
good economic news and spinning it negatively? What do you think?

ROBERT REICH, FORMER LABOR SECRETARY: Well, they`re going to try to
do it, Ed, and they`re going to continue to try to do it right up through
Election Day.

Look, 8.3 percent unemployment in an ordinary economy, in an economy
not through what we went through, would be bad. But the trend, and the
important thing is the trend is in the right direction. And this is going
to be tremendously helpful to President Obama.

At the same time, though, it could go because these numbers are
variable, could go up in a month. I think Republicans are more likely now
to sign up for and vote for an extension of unemployment benefits and also
for an extension of the payroll tax cut, because they don`t want to be
blamed if the economy just one month, maybe in February or March, doesn`t
do as well as it has been doing.

They are setting themselves up right now to be blamed if the economy
doesn`t continue this trend. They don`t want that.

SCHULTZ: Robert, what about manufacturing? Fifty thousand jobs, the
highest number in a single month since 1998. Is this a trend do you think,
and this is exactly what the president talked about in the State of the
Union address. What do you make of it?

REICH: Well, look, it`s great news -- manufacturing jobs in general
tend to be better jobs than service jobs. They also are linked to all kind
of other jobs, we need strong manufacturing base in this country.

But the long term trend, I mean, quite apart from what we`re seeing
over the past six months, long term trend is more and more manufacturing is
getting automated. Look inside a big factory today and you see robots, and
you see computerized machine tools.

So, that`s not where a lot of our long term strength is going to be.
Nevertheless, it is enormously helpful, and it`s positive. It`s at the
right direction. It`s good news.

SCHULTZ: What are the Democrats with the president need to do? We
all know the Republicans, I hope they come along but they have been
obstructionist throughout it all. What do the president and Democrats need
to do right now? What`s the best play moving forward?

REICH: Well, besides the extension of the payroll tax cut and also
extending unemployment benefits, both terribly important. And one thing we
did learned today, Ed, is that the long term unemployed as a percentage of
the total unemployed, keep on rising. That is more and more people who are
unemployed are unemployed for more than six months.

They do need extended unemployment benefits.

SCHULTZ: Yes.

REICH: And if they get it, they can turnaround and buy stuff and keep
other people employed. So, it makes a lot of senses. So, they have to --
the Democrats can continue to push for this.

I think the Democrats ought to also say no budget cuts until
unemployment drops down to 5 percent. That`s our trigger. And that
essentially means, we are not going to sit back and allow deficit cutting
to take precedence over job creation, until we get the unemployment rate
down to what it should be, until it`s down to what is essentially near full
employment.

SCHULTZ: Robert Reich, always a pressure. Great to have you with us
on this Friday evening. Thanks for your time.

Now, let`s turn to Ezra Klein, MSNBC policy analyst and columnist for
"The Washington Post."

Ezra, you wrote today that these are good numbers. What stands out
the most to you?

EZRA KLEIN, MSNBC POLICY ANALYST: Actually that there`s nothing bad
in them. Almost every month, Ed, we had some gloomy cloud in the numbers.
So, take December, pretty good month, 200,000 jobs, but 45,000 of them were
messengers and couriers. That looked like seasonal employment, that looked
like employment for Christmas, people carrying gifts around.

There was nothing bad here. One thing we haven`t mentioned,
revisions, we went back in the last couple months, and said, on, actually,
November, we added 55,000 more jobs than we originally thought. In
December, we added 3,000 more jobs than we originally thought.

You talked about the manufacturing jobs, the other big winners this
month, 70,000 jobs in professional and business services, another 35,000 in
health care.

This was a good number through and through. It`s really -- as I said
in "The Post" today, it was a recovery jobs number. Not just an OK number.

SCHULTZ: And so, is it a problem that we keep losing public sector
jobs? I mean, we`ve seen these radical governors across America attacking
firefighters, police officers and teachers, their war on public education
is just almost unprecedented in American history.

Figure that in -- if we had gone full bore on the stimulus package,
would all of those governors not fighting it, who knows what the numbers
would be.

KLEIN: Yes, it`s not helping. So the number of public sector jobs we
have lost in the last year is about 270,000.

So, if you had not lost those jobs, it would have been like adding
another month in which we had more job creation than this month. So, that
would be big. It would bring unemployed by 0.2 percent, 0.3 percent, 0.4
percent. It wouldn`t be nothing.

On the other hand, it`s not that big of a drag. The full number this
month was 257 in the private sector. We lost 13,000 public sector jobs.
What is most galling about it isn`t that it`s so big, but it`s so needless
of all the things government can do, the one it can certainly insure is
that it does not fire anybody.

But we have chosen to not take that route.

SCHULTZ: Good news around.

Ezra Klein, good do have you with us tonight. Thanks so much.

KLEIN: Thank you.

SCHULTZ: Remember to answer tonight`s question there at the bottom of
the screen. Share thoughts on Twitter @EdShow. We want to know what you
think.

Mitt Romney keeps trying to explain what he really meant when he said
"I`m not concerned about the very poor." Bob Shrum joins me for the Romney
train wreck

And last night, the president of the National Organization for Women
told me on the program that five years from now, the Susan G. Komen
Foundation will not exist. After today`s stunning development, does she
stand by the statement? She`ll join me later on on the program.

And more developments out of Wisconsin.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Coming up, Mitt Romney`s awful week got even worse today.
Bob Shrum is next.

Yesterday, Ellen DeGeneres stepped up for our Pennsylvania teacher
friend. Today, Ellen is being attacked by a right wing group because of
her sexuality. That story ahead.

And Josh Fox, brought attention to the dangers of fracking in his
movie "Gasland." Tonight, the Obama administration is taking steps to make
the process safer. If you care about the environment, you want to see the
story. This is breaking news and Josh Fox is here.

Share thoughts on Twitter with us tonight using #EdShow.

We`re right back.

(COMMERCIAL BREAK)

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

Here`s the thing about Mitt Romney which I think is kind of funny.
He`s kind of short on personality but this dude is full of material. Now,
he`s gone on record twice to say he misspoke when he said "I`m not
concerned about the very poor."

(BEGIN VIDEO CLIP)

ROMNEY: And I misspoke. I wish I wouldn`t have said it that way. I
made the same thought, part of my speeches over the last year or two, which
is I`m really concerned about middle income Americans. I want to help
middle income Americans. I want to get people out of poverty in the middle
income category. But, of course, I`m concerned and worried about all
Americans.

(END VIDEO CLIP)

SCHULTZ: And, of course, he tried out a similar line in another
interview.

(BEGIN VIDEO CLIP)

ROMNEY: Jon, it was a misstatement. I misspoke. I`ve said something
that is similar to that but quite acceptable for a long time. And, you
know, when you do I don`t know how many thousands of interviews, now and
then, you may get it wrong. And I misspoke.

(END VIDEO CLIP)

SCHULTZ: Romney isn`t exactly brimming with the political savvy that
a national candidate needs. But I guess he`s getting by. He engages the
mouth before he engages the mind quite often.

This is a man running for president of the United States if he gets
the nomination? But we`re not seeing a public servant here. What we`re
seeing here is a corporate suit, and sometimes an empty suit. He needs to
think before he talks. It`s constant backtracking with Romney.

Maybe Romney should do -- I don`t know, a little community organizing
first.

Let`s turn to Bob Shrum, Democratic strategist and professor at NYU.

Bob, good to have you with us tonight.

I want to play another bit of sound first. Here it is.

(BEGIN VIDEO CLIP)

ROMNEY: We ought to provide help to the people who have been hurt
most by the Obama economy. And that`s the middle class. It`s not those at
the very low end. It`s certainly not those at the very high end.

I`m not worried about rich people. They`re doing just fine. The very
poor have a safety net. They are taken care of.

In our country, the people that need the help most are not the poor
who have a safety net, not the rich who are doing just fine. But the
middle class.

(END VIDEO CLIP)

SCHULTZ: And the rich are doing just fine. Corporate tax levels are
at 40 year low at 12.1 percent.

This guy, I mean what he means to say and what he says he keeps
tripping over himself. How can he get through it or is this just going to
be their guy?

BOB SHRUM, DEMOCRATIC STRATEGIST: Oh, I think it`s a big problem for
him. he is going to be the Republican nominee, even the best candidates,
if I can use Romney`s word, misspeak, or have a misstatement. But for most
of them, it`s an episode. For him, it`s an epidemic for him.

I mean, I`m unemployed, I worried about getting a pink slip, $400,000
isn`t much money. I don`t care about the very poor, and on and on and on.
And he even bollixed up the whole issue of his income tax returns.

So, what he`s doing is creating a portrait of himself as someone who
comes from the 1 percent and cares only about the 1 percent. He doesn`t
even seem to realize that a lot of middle class people in this country have
been pushed down in the poverty during this recession. And now as jobs get
created, we`re going to have to make sure that they have the skills they
need to get back out.

SCHULTZ: Well, he`s got a brand new surrogate. His name is Donald
Trump. And, of course, we all know Trump did the endorsement yesterday.
Today, he tweeted that President Obama looked uncomfortable at the National
Prayer Breakfast.

And all I can say is really? I mean, I thought President Obama was
fabulous yesterday. He spoke from the heart, he talked about the time with
Billy Graham and how they prayed together.

I mean, you can`t script that kind of stuff. There`s such a realness
about President Obama and they`re such a stiffness about Mitt Romney

But back to Trump for a moment. Is Trump going to hurt him? I mean,
would you have advised Romney, you know, maybe you shouldn`t go up on stage
with this guy, he`s no big asset. What do you think?

SHRUM: Well, the only reason they did it is they were afraid that he
might actually go out and run as a third party candidate. I kind of agree
with Mark McKinnon, who worked for George W. Bush, who said this should
have been a Sister Soulja moment for Romney. He should have said, I don`t
want the endorsement, I`m not taking the endorsement, I`m not showing up.

Instead, he stood stiffly on the stage. It was one of the most
awkward events I`ve seen in a very long time in politics. And Trump just
adds to this whole impression that here`s a guy who stands up to -- it was
the billionaires club. There was two stiff guys in the billionaires club.
That`s where Romney comes from and that`s what he looks like he`s fighting
for.

He`s in the process of creating an indelible portrait of himself and
he`s on the verge of getting to a place you don`t want to be in American
politics where people don`t like you very much.

SCHULTZ: Well, I hope the American people make the connection of what
happened yesterday. You`ve got Donald Trump standing there with Mitt
Romney in Las Vegas, you know, a couple of very, very wealthy men, and
you`ve got the president of the United States at a prayer breakfast, with
spiritual leaders talking about the poor, self sacrifice and putting it to
Scripture. I mean, it`s just -- the contrast is just perfect.

Now, let`s talk about the economy.

SHRUM: Yes.

SCHULTZ: What`s good for the economy is bad for Mitt Romney, fair
enough?

SHRUM: Well, yes, because his whole campaign has been premised on the
notion that we`re in a recession, we`re in a downturn. I think he`s
rooting for recession like the Republicans and he`s running as a kind of
bio-candidate. Karl Rove has said this. He doesn`t have a real message
beyond saying I`m a CEO and I can fix the country.

Well, what`s happened today is very similar to what was happening with
Ronald Reagan in 1984 at the beginning of that year, when unemployment in
the month of January also went to 8.3 percent. Kept going down, people
thought it was 7.4 percent on Election Day. At that point, you know,
Walter Mondale was complaining about the deficit. The truth is, all that
got him was a deficit of votes.

SCHULTZ: Yes.

SHRUM: So, people are going to be very reluctant to change horses in
the middle of the recovery. If these numbers keep coming, that will be the
other bad thing that happens to Romney this week. He not only painted
himself as the portrait of a 1 percent. He also got some bad economic news
which almost shatters his message.

SCHULTZ: Bob Shrum, always a pleasure. Great to have you with us
tonight. Thanks so much. Have a great weekend.

SHRUM: Thanks, Ed.

SCHULTZ: JCPenney and Ellen DeGeneres teamed up to help out an
impoverished school district. Nothing more American than that. Now, a
radical group thinks that the partnership goes against American values?

And later, a major development in the secret investigation surrounding
Wisconsin Governor Scott Walker. He`s talking to the district attorney.
Attorney Mike Papantonio is here to tell us what that all means.

(COMMERCIAL BREAK)

SCHULTZ: Ellen DeGeneres is a celebrity who uses her status to help
others. Last night, we showed you how Ellen helped out Pennsylvania
Chester Upland School District, where teachers volunteered to work for free
when the district ran out of money.

(BEGIN VIDEO CLIP)

ELLEN DEGENERES, TV HOST: JCPenney believes in doing the right thing
and they want to make sure kids realize their full potential. So, they`re
going to give you a little bit of help to help your school out. You`re
going to get a check for $100,000 for your school.

(APPLAUSE)

UNIDENTIFIED FEMALE: Oh, thank you so much!

DEGENERES: Thank you so much.

UNIDSENTIFIED FEMALE: It`s unbelievable.

DEGENERES: We believe in you kids. Don`t ever give up.

(END VIDEO CLIP)

SCHULTZ: The audience sure liked it. Part of the reason Ellen was
able to give such a generous gift was because she is the new spokesperson
for JCPenney.

But one group isn`t happy Ellen is the face of the company.

The anti-gay group One Million Moms, which is part of the
ultraconservative American Family Association, released the following
statement: "Funny that JCPenney thinks hiring an open homosexual
spokesperson will help business when most of their customers are
traditional families. More sales will be lost than gained unless they
replace their spokesperson quickly. DeGeneres is not a true representation
of the type of families that shop at their store. The majority of JCPenney
shoppers will be offended and choose to do no longer shop there."

Fortunately, JCPenney disagrees. The company confirms it stands
behind its partnership with Ellen DeGeneres.

I applaud JCPenney for refusing to cave in to the pressure from the
intolerant few in our society. This represents an important victory for
the folks who are fighting to move this country forward, not back.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: I don`t know what got the
Komen Foundation to make their decision. I`m glad they reversed it.

(END VIDEO CLIP)

SCHULTZ: The Komen reversal story is evolving yet again. Planned
Parenthood may still get shut out. The president of the National
Organization for Women is back for the latest.

Major news out of Wisconsin. Governor Scott Walker has lawyered up
and is talking to the DA investigating his staff. We`ll have a full
report.

Breaking news from the white house on fracking regulations.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Health problems.

UNIDENTIFIED FEMALE: I am never healthy.

UNIDENTIFIED MALE: Hazardous explosive conditions inside the house.

(END VIDEO CLIP)

SCHULTZ: "Gasland" director Josh Fox is here with reaction.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW and thanks for watching tonight.
After a massive public outcry, this morning, the Susan G. Komen Foundation
made a stunning announcement.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Welcome back, everybody. Some major breaking news
right now on MSNBC, regarding Komen. It is now apologizing for pulling
grant funding from Planned Parenthood.

(END VIDEO CLIP)

SCHULTZ: The decision by Komen to apologize and amend the charity`s
policy regarding groups under investigation was greeted enthusiastically by
Planned Parenthood supporters and elected officials.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), MINORITY LEADER: The decision by the Susan G.
Komen Foundation to reverse their decision about Planned Parenthood just
goes to show you, when women speak out, women win. And women`s health has
a big victory this morning.

BLOOMBERG: I have no idea why the Susan Komen Foundation did what
they did, or why they reversed it. I`m just glad that, in the end, they
came to the right decision. They will continue to fund Planned Parenthood.

(END VIDEO CLIP)

SCHULTZ: But a closer look at the statement released by Komen founder
Nancy Brinker has some wondering, was this really a reversal? Komen says
its decision to stop funding cancer screenings at Planned Parenthood was
not political. Komen also states it will continue Planned Parenthood`s
current funding, but current funding was never the issue.

Komen maintained all along existing grants would remain untouched.
The issue and outrage was over next year`s funding. The statement does not
clarify matters. "We will continue to fund existing grants, including
those of Planned Parenthood, and preserve their eligibility to apply for
future grants."

A Komen board member confirms with "Plum Line`s" Greg Sergeant the
announcement does not mean Planned Parenthood is guaranteed future grants.
Predictably, the right wing is outraged over Komen`s non-reversal.

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH, RADIO TALK SHOW HOST: The Susan G. Komen bunch, the
Race for the Cure, they have caved big time to the Femininazis at Planned
Parenthood.

UNIDENTIFIED FEMALE: This is quintessential feminine confusion. This
is the part of my gender I`m ashamed of.

GRETCHEN CARLSON, FOX NEWS ANCHOR: Who is providing abortions? That
is really what this is coming down to.

Yes. And the pro-choice militant lobby did a smear campaign against
the Komen Foundation.

UNIDENTIFIED FEMALE: It worked.

CARLSON: It worked.

UNIDENTIFIED MALE: At least when you pay, you know, the Mob for
protection, they actually offer the protection. Here, they are
intimidating a group and they are not actually doing what they are
promising to do, which is the mammogram.

(END VIDEO CLIP)

SCHULTZ: I`m joined tonight by Terry O`Neill, president of the
National Organization For Women. Terry, good to have you back with us
tonight. Thanks for joining us last night. But there is a pretty
interesting development in all of this.

Was this a head fake, a PR stunt or is it for real? What do you
think?

TERRY O`NEILL, NATIONAL ORGANIZATION FOR WOMEN: You know, I think it
could be a first step toward Komen doing what it needs to do. But clearly,
I don`t view their statement as an unequivocal reversal.

Komen has deeply compromised its credibility, certainly among women
and certainly among those who support women`s health. And it needs to do
an awful lot more to re-establish its credibility, having gone back and
forth as to what its rationale was for trying to defund Planned Parenthood.
First they said it was because of the investigation.

Then they said, no, it wasn`t the investigation. It was because
Planned Parenthood makes referrals for mammograms, doesn`t actually perform
them. Then they said, oh no, it was really about the investigation. So
you are kind of getting whiplash trying to figure out what it is that is
actually motivating them.

And their statement did not clarify that at all.

SCHULTZ: Well, will this problem continue? Will this story stay
alive until they are making a definitive statement on where they stand for
future funding? Looking back at it, the funding that Planned Parenthood
has never really been in question until this came up? Or am I wrong on
that?

O`NEILL: Well, the current funding they always said they would --
they would honor the grants that they had made for current funding.

(CROSS TALK)

SCHULTZ: But in past years, this has never been a big issue, has it?

O`NEILL: No. You know, this is the thing. This is why I said
yesterday that Komen has fundamentally transformed what it is. It used to
be an organization that would bring women together. You could be -- you
could consider yourself pro-life, you could consider yourself pro-choice,
but you could agree on the need to cure breast cancer. Just breast cancer.

Now, what Komen has done -- yes, until this morning, it had firmly
jumped into political attacks on Planned Parenthood. Now, backing off of
that does not get Komen out of politics, because, in fact, now what it`s
doing -- and now that a spotlight is being shown on it, people are going to
find out. It has defunded some 12 million dollars of grants to
organizations like Johns Hopkins University, because Johns Hopkins does
stem cell research.

So what Komen is doing is engaging in that same scorched Earth
politics of the sort that Karen Handle, the extremist politician who is the
senior vice president for policy --

SCHULTZ: Do you think she is the problem in all of this?

O`NEILL: You know, I think she is one of the problems. I have read -
- I have been trying to read as much as I can about this. My understanding
is that there are a number of very extreme anti-abortion people on the
board of Komen or have been on the board. And certainly Komen is feeling
enormous pressure.

But they are feeling pressure from people who also are disingenuous in
the way they advocate about this. So Komen really needs to come clean.

SCHULTZ: Coming clean, let`s talk about that. A Komen board member
says Komen CEO Nancy Brinker`s job is safe. Should it be?

O`NEILL: Not as long as Komen continues to be a political
organization. So far, it is and continues to be a political organization.
I think they have taken a step towards going back to being a health
organization. They`re not there yet.

If they don`t get there, she shouldn`t stay on.

SCHULTZ: Why don`t choice groups go on the offensive and call for
Karen Handle to be removed?

O`NEILL: Actually, we did today. We put out a statement saying, yes,
at the very least, Karen Handle needs to either resign or be fired.

Komen`s statement itself said we don`t want our work to be marred by
politics. Then take the politician out of your senior policy position.
That is the first thing you need to do.

SCHULTZ: Terry O`Neill, good to have you with us tonight. Thanks so
much. I think it`s a pretty good head fake.

Next, the investigation surrounding Governor Scott Walker`s days as
Milwaukee county executive have already taken down at least four of his top
aides. Finally, Walker is talking. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: In our political panel tonight, we have a major development
in Wisconsin with Governor Scott Walker and the secret investigation
surrounding his time as Milwaukee county executive. Today, Walker
announced that he will finally meet with the district attorney leading the
investigation, John Chisholm.

He has also lawyered up. He`s hired a pair of attorneys. Walker, the
governor says -- released this following statement saying that "I will
voluntarily meet with Mr. Chisholm to assemble additional background
information. I hired counsel to ensure that I am in the best position
possible to continue aiding the inquiry."

The news is the latest in a series of legal developments surrounding
Walker and several of his former aides. Two of Walker`s former associates,
including the former deputy chief of staff, has been arrested and charged
with embezzling 60,000 dollars from a veterans charity event.

Another former deputy chief of staff, Kelly Reinfleish (ph), was
charged with four felony counts of misconduct in office. She is accused of
using a secret e-mail system to do campaign work while being paid by
Milwaukee County taxpayers.

A fourth Walker associate is facing two misdemeanors for using county
resources to raise money for Walker`s gubernatorial campaign. Scott Walker
has yet to publicly comment on his innocence.

I`m joined tonight by Goldie Taylor, managing editor of "the Goldie
Taylor Project," and also attorney Mike Papantonio, and host of the "Ring
of Fire" radio show.

Mike, I`m intrigued. He`s lawyered up. What does that say? Why, all
of a sudden, would he voluntarily want to come forward and meet with the
district attorney? What does it say?

MIKE PAPANTONIO, RADIO TALK SHOW HOST: Ed, there is not a prosecutor
in this business who at one time in their career hasn`t had a target in an
investigation come to their office and want to talk. Here`s what that
target usually believes: they usually believes they are there to get more
information about where the prosecution is going.

They want to get some direction about what the prosecutor is up to.
They typically think that they can out-hussle the prosecution, and they can
get more information from the prosecutor than the prosecutor gets from
them.

Ed, they`re always wrong. Right now, what I`ve seen in this situation
is you have very, very methodical, textbook investigation taking place.
These are very talented prosecutors. This is extremely risky for him to go
in there and act like he is going to hustle them, because he`s the guy who
is at risk in this big thing.

SCHULTZ: Why wouldn`t Walker just speak to his innocence, say I have
nothing to do with this; I`ll help you out any way I can? Why won`t he
publicly say he`s innocent?

PAPANTONIO: Ed, the e-mails that are coming out right now point to
just the opposite of that. There are e-mails that are pointing to meetings
that are taking place with people from outside the state. Goes all the way
up to the RNC, where you have his people meeting with the RNC right before
the election.

It goes that far. It goes to Tim Russell. Listen, can you imagine
having to rely on Tim Russell as the guy who is going to keep you out of
trouble? This is the guy, I can promise you, is telling the prosecutors
everything. He`s a guy, 60,000 dollar embezzlement charge against him.
This is the guy that Scott Walker has to count on to come through for him.

There is no honor among thieves. This story has just started. FBI
raids, resignation, immunity for John Doe witnesses. This is a classic
investigation.

I`m going to tell you something, these investigators are talented. He
better be very careful when he walks in that office.

SCHULTZ: Goldie Taylor, what do you think this means for the recall?
Where do you think this goes as far as the recall is concerned? Why
wouldn`t Republicans step up in the state of Wisconsin and say, you know
what, you have way too many problems? What about that?

GOLDIE TAYLOR, "THE GOLDIE TAYLOR PROJECT": I think it only
strengthens the recall. And at the end of the day, the national
Republicans have put their arms around Scott Walker and they just can`t
seem to let him go. But they are going to have to let him go by force when
he is able to take a perp walk.

SCHULTZ: Well, I`ve noticed that other Republican governors are
coming out. I`ve never seen Mitch Daniels so visible. Jan Brewer is
visible as of late. So it looks Walker is getting knocked off his perch
and other governors are stepping up to keep the narrative alive.

Turning to other politics, today, the head of the Congressional Black
Caucus, Emanuel Cleaver, said this.

(BEGIN VIDEO CLIP)

REP. EMANUEL CLEAVER (D), MISSOURI: One of the things we have to do
is quit trying to send subliminal racial messages during the campaigns.
Governor Romney and Speaker Gingrich have been guilty of saying things that
are not helpful to a society begging for racial inclusion.

UNIDENTIFIED FEMALE: The Food Stamp was accused of being a racial --
is that what you were referring to, congressman?

CLEAVER: Yes, yes. That and other comments about appearing before
the NAACP. I also think that when you say that you`re not, you know,
interested in the poor, that creates a problem.

(END VIDEO CLIP)

SCHULTZ: How big a problem is this going to be for the Republicans,
when you`ve got members of Congress who are holding them accountable in the
sound chamber?

TAYLOR: I think it`s absolutely a problem for a party who contends
that they are out to reach out to African Americans across the country.
They`ve been unsuccessful at that. Here`s the reason why, because they
just can`t get it right. It isn`t about reaching out. It`s about getting
in touch and understanding what people`s daily challenges are on a day-to-
day basis, about quality health care, access to, you know, quality basic
education, you know, meaningful jobs, meaningful wages.

All of those are in the mix. But when you are referring to the first
African American president as the Food Stamp president, when you are
referring to their parents as criminals or wanting to put school children
to work as janitors, those kind of things won`t ring well with African
Americans across the country. And they haven`t.

So they are going to have real problems this fall as those statements
come back to haunt them.

SCHULTZ: Quick comment on the job numbers. Mike Papantonio, what
does it mean for President Obama? Does it make it politically easier for
him?

PAPANTONIO: Well, it does. But you know what, listen, these are the
Republicans who wouldn`t give Obama credit for the success of the bailout
of the auto industry. They wouldn`t give him success -- the success of
Libya.

They wouldn`t give him success for the bin Laden -- bin Laden story.
So it`s important to the American people because they keep hearing positive
things, regardless of the fact that the Republicans, at every turn, want to
turn it in to something negative.

They are the most negative, do-nothing Congress that we have had in
the United States in a very long time, Ed.

SCHULTZ: Goldie Taylor, Mike Papantonio, always a pleasure. Great to
have you with us tonight. Thank you for your time.

The practice of hydraulic fracking is having a serious impact on the
environment. And it`s making some folks in this country sick. That is
what they believe.

Tonight, President Obama`s Interior Department is drafting rules to
combat the practice. The director of "Gasland," Josh Fox, joins me next.
Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: ED SHOW survey tonight, I asked will Republicans ever give
President Obama the credit he deserves for the economy? Three percent of
you think they will; 97 percent of you said no.

Coming up, director Josh Fox is here to preview the follow-up to
"Gasland," and reaction to the Interior Department`s new proposed
guidelines for fracking. The Big Finish is next. Stay tuned.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. Many Americans believe
fracking is an unsafe drilling practice that is ruining the environment and
making American people sick. Today, breaking news, the Obama
administration`s Interior Department is drafting rules requiring companies
to disclose the chemical make up of fracking fluids.

The proposed rules would also require drillers to make sure waste
water does not leak into the environment, according to Reuters. Josh Fox
is the journalist who brought this to the world`s attention with the movie
"Gasland" We showed you how he was arrested at a public hearing on Capital
Hill on fracking because Republicans simply didn`t want him there.

Here is a clip from "Gasland".

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was the same story, water trouble.

UNIDENTIFIED MALE: We never had a problem with the water. After they
drilled, the water was bad.

UNIDENTIFIED MALE: Oh, man.

UNIDENTIFIED MALE: Health problems.

UNIDENTIFIED MALE: I am never healthy.

UNIDENTIFIED MALE: Hazardous explosive conditions inside the house.

UNIDENTIFIED MALE: Whoa! Whoa! Jesus Christ.

(END VIDEO CLIP)

SCHULTZ: Let`s bring in Josh Fox, Academy Award nominated film maker,
director of "Gasland," and currently working on "Gasland II."

First of all, I want to thank you for joining us the other night,
first, after you were arrested and out and being able to talk. Thank you
so much for that.

The new regulations, what do you know about them and will it help?

JOSH FOX, DOCUMENTARY FILM MAKER: From what I understand -- this is
the Interior Department. And what I think they are saying is that this is
only about public lands. So certainly we need the disclosure of chemicals
all across the United States.

In 2005, the Energy Act of -- Energy Policy Act of 2005 exempted
fracking companies from reporting the chemicals that they were injecting
into the ground. That was an exemption to the Federal Safe Drinking Water
Act.

So that exemption needs to be overturned. There was a bill in
Congress called the Frack Act, and that needs to be supported by the
president. It`s not adequate to just have this on public lands, because
that is a very, very small fraction of this activity.

The gas companies have to disclose all across the United States.

SCHULTZ: What are they using? And how damaging is it?

FOX: Well, there are about 600 different chemicals that we know about
that they use in fracking. They are -- so many of them have health
effects, from Benzene to Formaldehyde, carcinogens, neuro-toxins, things
that are extremely dangerous to human health.

And in very small quantities, if they get into water supplies, they
can contaminate those water supplies forever, as was the case -- is the
case in Pavilion, Wyoming, and Dimmick (ph), Pennsylvania and thousands of
cases reported across the country.

SCHULTZ: Josh, I had a gentleman call my radio show the other day.
He said that he was living in Colorado. These surveyors came on his land.
They started doing all kinds of stuff to get ready. He went over and said,
who are you. They told him this is where we`re drilling.

He says, no, these are my minerals. They said, no, it`s not. and he
couldn`t stop them. Not long after that, he had a liver transplant,
because, of course, he was subjected to the aftermath of all the fracking
and it got into the drinking water. That is what he claims.

Is this a common story? Do you hear this a lot?

FOX: All the time.

SCHULTZ: All the time.

FOX: Well, we have drilling in 34 states. We a huge --, this is the
largest domestic natural gas drilling campaign in history. And for the --
the other part of the rules here is that they are suggesting that somehow
there is a way to fix the casing problems. That is a fiction. It`s an
impossibility.

If the Interior -- this is not a controversial thing to say, by the
way. The industry has been trying to fix these problems of well casing for
decades. And they have concluded that there is no way to fix it.

Over the life of the gas well, 50 percent of those well casings will
fail. That is the industry`s number. I mean, it`s an inch worth of
concrete that`s protecting the ground water from all those hazardous
chemicals, from the volatile organic compounds that come up with the well,
from the radioactive material that`s in the waste water, an inch worth --
I`m sorry, not concrete, an inch worth of cement.

Cement fails over time. If you drill a well right next to the well
that you just drilled, you can crack that cement. Industry has said there
is no way to solve a cement casing problem. Obama administration rules are
saying we want to you fix that problem. That doesn`t add up to me.

SCHULTZ: When does "Gasland II" come out? And what new content will
you have?

FOX: This summer. And ironically, after being arrested not just in
Congress, but by Congress, the film focuses on the level of contamination
that we missed in the first movie, which is the contamination to our
political system. Every fracking dollar that is in Congress -- and they
make enormous campaign contributions and lobbying -- is a contaminant in
our political system, toxic to our democracy.

SCHULTZ: They are protecting their activities.

FOX: I have no doubt that if oil and gas was not contributing huge
amounts of money to Congress, I wouldn`t have been arrested by the
Republican chair on Wednesday morning.

SCHULTZ: Josh Fox, thanks for your time. We look forward to visiting
with you again. Thanks so much.

FOX: It`s great to be here.

SCHULTZ: That`s THE ED SHOW. I`m Ed Schultz. You can listen to me
on Sirius XM channel 127, Monday through Friday, noon to 3:00 PM. Follow
me on Twitter @EdShow, and like THE ED SHOW on Facebook.

"THE RACHEL MADDOW SHOW," starting the New England Patriots, starts
right now. I suppose I better go for the Giants, just so we can have fun
on Monday?

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

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