updated 2/7/2012 11:47:58 AM ET 2012-02-07T16:47:58

Guests: E.J. Dionne, Michael Eric Dyson; Howard Fineman, Bob King, Gary Peters, Joan Walsh

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

Clint Eastwood stars in his best role yet, a voice for the American
worker. Conservatives tried to kill the automobile industry, to quote
Josey Wales: "Dying ain`t much of a living, boy."

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

(BEGIN VIDEOTAPE)

CLINT EASTWOOD, ACTOR: Detroit showing us it can be done. And what`s
true about them is true about all of us.

It`s halftime in America.

SCHULTZ (voice-over): An American icon telling an American success
story, and conservatives aren`t having it.

KARL ROVE, REPUBLICAN STRATEGIST: I was frankly offended by it.

SCHULTZ: Today, reaction to the "Halftime in America" ad with the
United Auto Workers president, Bob King, and Michigan Congressman Gary
Peters.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I deserve a second term
but we`re not done.

SCHULTZ: Brand new poll numbers show the American people agree with
that statement. E.J. Dionne and Joan Walsh on the president`s surge.

Republicans in Congress are about to pass a union-busting bill, and
the Democrats may help them out. We`ll bring you the report.

And racism rears its head in a Republican Super Bowl ad. And the
candidate behind the ad isn`t backing down.

UNIDENTIFIED FEMALE: The economy gets very weak. Ours get very good.
We take your jobs, thank you, Debbie Spend-it-now.

(END VIDEOTAPE)

SCHULTZ: Good to have you with us tonight, folks. Thanks for
watching. We come to you from Minnesota where the caucus is tomorrow.

But this is the big story tonight -- it basically is the ad the entire
country is talking about, for a good reason. The Chrysler commercial with
Clint Eastwood from last night`s Super Bowl I think speaks for itself.

(BEGIN VIDEO CLIP)

EASTWOOD: It`s halftime. Both teams are in their locker room
discussing what they can do to win this game in the second half.

It`s halftime in America, too. People are out of work and they are
hurting, and they are all wondering what they`re going to do to make a
comeback. And we`re all scared because this isn`t a game.

(END VIDEO CLIP)

SCHULTZ: The first 30 seconds of that ad so powerful -- I mean, did
you notice it was shock on film for effect? I mean, the voice, Clint
Eastwood, Mr. True Grit, Mr. Tough Guy, Mr. Dirty Harry, into the city
talking about Detroit and the way American can come back. I mean, it
captivated the audience that I was with yesterday. I mean, it`s a tribute
to the American worker and a success story.

Yes, it`s kind of a locker room pep talk, which is cool, but also
recognized the people in the country who are going through a lot of hurt
right now.

(BEGIN VIDEO CLIP)

EASTWOOD: People of Detroit know a little something about this. They
almost lost everything. But we all pulled together. Now, Motor City is
fighting again.

(END VIDEO CLIP)

SCHULTZ: We all pulled together, the rebirth of the American
automobile industry, certainly is a story worth celebrating.

But let`s not get carried away with saying we all came together. This
was an extremely heavy lift for some in Washington.

A majority of the American people opposed giving loans to Chrysler and
General Motors. Top Republican officials were against the loans, including
the current front-runner for the Republican nomination.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: There`s no question but that
if you just write a check, that you`re going to see these companies go out
of business ultimately, don`t just give them a check, and expect them to
spend it the way they have been spending the last few years.

(END VIDEO CLIP)

SCHULTZ: Well, the American taxpayers saw it differently. Loaning
the automobile industry money was unpopular. A lot of Americans didn`t
want it. The majority of Americans didn`t want it, but it was the right
thing to do, it was the moral thing to do.

The capital markets, well, they were not in a position to rescue the
automobile industry with any loan or capital. Wall Street was in a
meltdown.

So, what did President Obama do? He threw the Hail Mary pass and
ended up on Super Bowl Sunday. His administration turned to a senior
advisor Ron Bloom, who had been down this road before about reorganizing,
and he turned to him and said I got a plan, we can turn this thing around.

The auto loans saved -- I want you to hear this number -- saved more
than a million jobs in 2010 and prevented nearly $97 billion in personal
income losses. The weak economy would have been further damaged by the
losses if we had not have done this.

This commercial, my friends, was the right message, it was at the
right time, it was perfect for America, and I bet it caught the attention
of everybody in every living room in this country. The Super Bowl was the
best possible place for it.

But wait a minute, Karl Rove, I don`t know if you like the outcome,
but he didn`t like -- he and his friends did not like, he didn`t like it a
bit, because it turned into a political football.

(BEGIN VIDEO CLIP)

ROVE: I was frankly offended by it. I`m a huge fan of Clint
Eastwood. I thought it was extremely well-done ad, but it is a sign of
what happens when you have Chicago-style politics and the president of the
United States and his political minions are in essence using our tax
dollars to buy corporate advertising and the best wishes of the management
which is benefited by getting a bunch of our money, that they`ll never pay
back.

(END VIDEO CLIP)

SCHULTZ: See, they`re just a bunch of middle classers in that ad.
See those firefighters in there, and the school teachers -- those are the
kind of folks the conservatives don`t care about.

Chrysler has already paid back the loan and General Motors is on
schedule. But if Karl Rove wants to be offended, let him be offended.
Rove is offended by a great American success story?

Clint Eastwood is right. This is not a game. This is serious
business to a lot of Americans turning this economy around.

The CEO of Chrysler couldn`t be more clear about the intention of the
ad on Super Bowl Sunday. He said, "The message is sufficiently universal
and neutral. That it should be appealing to everybody in this country and
I sincerely hope that it doesn`t get utilized as a political fodder in a
debate."

Well, you know what? It is. That`s the way it is.

Conservatives still believe that the auto loan was the wrong thing to
do. They are on the wrong side of history. And their only hope is to
politicize good news just like when you saw all the political talk last
Friday when the job numbers came out.

But the message of this ad is just too strong.

(BEGIN VIDEO CLIP)

EASTWOOD: How do we come from behind, how do we come together, and
how do we win? Detroit is showing us it can be done. And what`s true
about them is true about all of us.

This country can`t be knocked out in one punch. We get right back up
again and when we do, the world is going to hear the roar of our engines.

Yes, it`s halftime, America. And our second half is about to begin.

(END VIDEO CLIP)

SCHULTZ: Yes, the big question is how do we come together? This ad
was about the strength of the American spirit. But it is also a love
letter to the people who stood behind American workers to make this rescue
possible. The American taxpayer was the people that made this possible.

The questions that were in that commercial are so profound -- where do
we go from here, how do we come together? Isn`t that what we`re asking
Washington?

So what if there is a political under-tone to this ad? The fact is
that`s the ad everybody is talking about. It cuts right to every kitchen
table in this country that was affected by what taxpayers did to help an
industry turnaround. The capital markets couldn`t do it. There was nobody
stepping up to write a check to do it, to go into business. There were
Republicans out there who were saying that this is a dead end, that this is
the wrong road to follow.

Richard Shelby of Alabama, I have the tape, you shouldn`t have said
that you were wrong.

So where do we go from here? We`ll le just use this as a template
that if we believe in American workers, that if we believe in Hollywood,
like Clint Eastwood believes in the American worker, Eastwood`s comment
tonight, he`s not in the Obama crowd.

You don`t have to be in the Obama crowd to be for the American worker.
You don`t have to be in the Republican crowd or the Democratic crowd to be
for the American worker. It plays to our best instincts as Americans to
give somebody a lifeline to do better as a worker and compete and that`s
what this story is all about. It was great stuff.

Get your cell phones out. I want to know what you think. Tonight`s
question: will voters hold Republicans accountable for trying to kill the
American auto industry? Text A for yes, text B for no to 622639. You can
always go to our blog at Ed.MSNBC.com. We`ll bring you results later on in
the show.

I`m joined tonight by Bob King, who is the president of the United
Auto Workers, and also Congressman Gary Peters of Michigan, where Chrysler
is in his district.

Gentlemen, great to have you both with us tonight I know you have been
on the ground floor with this story all along.

Bob, I got to ask you -- when you saw the ad, what were your emotions?

BOB KING, UAW PRESIDENT: I felt great. It was a fantastic ad.

(CROSSTALK)

SCHULTZ: Go ahead.

KING: It really honored our membership. Our membership made a lot of
sacrifices. We worked with management. It was a great example of
management, labor, community and government all working together.

SCHULTZ: Here`s Clint Eastwood`s statement about the ad. "I`m
certainly not politically affiliated with Mr. Obama. It was meant to be a
message about job growth and the spirit of America. I think all
politicians will agree with it."

Congressman, I`m not sure about. I respect Clint Eastwood. But I
remember the days when there was people out there saying that this wasn`t
going to work.

What is it about conservatives and, of course, Karl Rove`s message?
What`s your response to that?

REP. GARY PETERS (D), MICHIGAN: Well, my response is that the ad is
very simple, it`s just a factual ad about what actually happens in Detroit
and with the auto manufacturers that the investment in American workers has
been successful. It`s a great turn around.

Mr. Rove apparently just doesn`t like facts, he`s not a guy that ever
lets facts get in the way of his opinion and we`re seeing that once again
that his opinion is trumping the facts of the situation.

President Obama stepped up, made what was an unpopular decision around
the country but was right for American workers, not just in Michigan, but
all across our country.

SCHULTZ: Congressman, do you think it was the right thing to take
that ad out and do that by Chrysler? Do you think it was the right thing
to do?

PETERS: It is absolutely the right thing to do. The American public
needs to understand that when you bet on American worker you will win, you
will win every time.

And we had a situation, as you mentioned at the top of your program,
where because of the greed on Wall Street that brought our economy to its
knees, we had a situation where we almost lost major manufacturing industry
in our country, had we lost the auto industry. It also would have meant
middle class Americans across this country would have found their
livelihood in danger.

You`ve got to make something in this country. You`ve got to build
something. That`s what the American auto industry is. It`s a
manufacturer. We need to stand up for manufacturing and make sure middle
class families have the opportunity to earn a decent livelihood.

SCHULTZ: Bob King, the United Auto Workers took a haircut. I mean,
you caved in on things you had to help out. And now, there`s employees
that are getting bonuses.

Take us down that road. How tough was that to do?

KING: It was a huge sacrifice for our membership. But our membership
wanted to support the companies. They wanted to turn around. They wanted
to save jobs in America.

And in this last set of bargaining, they put the priority on more
investment, more product in America, to get some of their neighbors hired.
I couldn`t be prouder of our UAW membership. And they are making the
highest quality and most productive -- highest quality products and most
productive plants. It was a huge victory.

And again, President Obama -- Gary is exactly right -- without his
leadership, it would not have happened.

SCHULTZ: I went to my phone right after that commercial and I was
anxious to see how the Twitter world was going to respond to it. It was
overwhelmingly positive, and it was fun to read -- just to see how people
were responding to this.

But, Congressman, Karl Rove says the taxpayers are still on the hook
for the auto loan. Take us down that road.

PETERS: Well, he`s wrong once again. He`s not going to let facts get
in the way of his opinion. There is still a ways to go but the Chrysler
loans are being paid back with interest, certainly all the loans that were
made by President Obama have been paid back with interest. Money from the
General Motors investment is also being paid back, shares have been sold to
the public.

There is still some government money involved but now with the success
of General Motors, which as you reported on your program, has been very
successful. In fact, they are looking at perhaps a multibillion dollar
profit at General Motors. That`s a big turn around from where they were.

And as a result of that, the remaining investment the taxpayers have
in General Motors will certainly be paid back -- hopefully most of it. But
whatever is not paid back, it won`t be that much, you`ve got to put that in
comparison as to what would have happened if you let these companies
disappear.

As you mentioned, a million jobs are impacted by it. Folks who have
jobs now, who were working, who are paying taxes, who were able to provide
for their families and pursue that American Dream, that would have washed
away if it wasn`t for this investment in American manufacturing.

The cost would have been catastrophic for our whole nation to even
think that we would allow a major manufacturing sector in our economy to
disappear, to me is completely irresponsible from any elected official.

We have obligations to the people back home, to hard working people
who are playing by the rules each and every day. All they want is a decent
shot at a decent wage, decent health care, and an opportunity to retire
with dignity.

SCHULTZ: Yes.

PETERS: That`s what manufacturing jobs do, and that`s what this
investment really returned to us.

SCHULTZ: Gary Peters, Bob King, great to have you with us tonight.
Appreciate your time on this story.

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

Mitt Romney says President Obama is in over his head, yet the
president is just smoking Romney with American voters in the polls. E.J.
Dionne and Joan Walsh will also talk about Minnesota with us, coming up.

And Republicans just sabotaged an FAA bill with an anti-union rules.
And Democrats in the Senate let them get away with it. You won`t want to
miss this story. It affects a lot of workers in this country.

We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: Coming up: is it halftime for the Obama presidency? The
latest polls put him ahead of Romney. All the details with Joan Walsh and
E.J. Dionne, next.

And Tom Brady`s supermodel wife`s prayers -- well, they went
unanswered last night as the Patriots fell to the Giants. And we`ll show
you who she`s blaming for the team`s loss.

And Congressman Pete Hoekstra is out in defense of his ad that many
say is racist and I think it is. We`ll show you the ad and talk with
Michael Eric Dyson later on in the hour.

Share your thoughts on Twitter using the #EdShow. We`re right back.
Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OBAMA: I deserve a second term but we`re not done. Look, when you
and I sat down, we were losing 750,000 jobs a month. Now, we`re creating
250,000. We created 3.7 million jobs over the last 23 months. We created
the most jobs since 2005.

MATT LAUER, NBC NEWS: But it`s not done.

OBAMA: The most manufacturing jobs since 1990. But we`re not
finished.

The key right now is just to make sure that we don`t start turning in
a new direction that could throw that progress off.

(END VIDEO CLIP)

SCHULTZ: President Obama made his, I think, best case for second term
during his Super Bowl interview with Matt Lauer yesterday.

And a new poll shows Americans are starting to agree with him. The
latest "Washington Post"/ABC News poll shows that President Obama leading
Mitt Romney by six points. The president was down by two last month. The
biggest swing is among independents.

Today, President Obama leads Romney, 47-46. But three weeks ago, the
Mittster was ahead by 12 points. What a turnaround?

One reason for the shift, people are getting to know Mitt Romney
better. And the more they see, the more they don`t like him. Fifty-two
percent of the people say that the more they hear about Mitt Romney, the
less they like him.

And Romney is failing in his attempt to appeal to the 99 percent. The
president has a 19-point lead on the question of who voters trust to
protect the middle class.

Romney is already in damage control mode. His campaign is attacking
the poll question calling them seriously flawed. But "The Washington Post"
stands by the questionnaire.

Let`s turn to Joan Walsh, editor-at-large for Salon.com, and MSNBC
contributor E.J. Dionne, senior fellow at the Brookings Institution and
columnist for "The Washington Post."

I don`t know about you two, but I tell you what? I loved it when
President Obama came out and said, you know what? These were the numbers,
this is what they are right now. And, oh by the way, I deserve a second
term.

Joan, it`s kind of almost out of character for the president to talk
like that. What do you think -- is he making the turn?

JOAN WALSH, SALON.COM: I think he`s made the turn, Ed. And I think
that that turn is part of why his numbers are going up. I mean, I think
there are several things going on.

We do see unemployment coming down, not as fast as we would like.
It`s still a problem. But it`s coming down. The numbers are going in the
right direction.

And the president`s own rhetoric has been more feisty, much more
populist, and he`s given people the feeling that he`s competent, he`s
confident in them, and that we are on the right track. And I think that in
turn is shoring up his base and also attracting independents.

Then, of course, the third thing we talked about the Republicans are
scaring people.

SCHULTZ: E.J., does he stay the course? Does he keep his tone? Is
this the winning strategy, do you think?

E.J. DIONNE, MSNBC CONTRIBUTOR: Well, it sure much more winning than
what he was pursuing six months ago. I think what you`re seeing -- two
short term things, two long term things.

The long term things are as Joan suggested. Starting in September, he
abandoned seeking bipartisanship with people who didn`t want to pursue
bipartisanship and started making an argument about fairness and shared
prosperity.

I think Occupy Wall Street deserves a hat tip here, because they
really changed the nation`s conversation. We are talking a lot more about
economic inequality than we were six months or a year ago, and that`s not
good for conservatives.

And then, short term, I think Romney has suffered more than he`s
gained in these primaries, particularly it seems when he talks about money.
And lastly, I think what is significant is not just that the economy has
improved, because it started doing that a while ago, but Americans are
starting to believe that it`s improving, they are sensing that this time it
made be for real.

Now some things could go wrong in Europe or in Iran. But for now, I
think Americans think we may have finally turned the corner and that makes
a huge difference.

So, I don`t see why the president would abandon what he started in
September, and he keeps doubling up on Osawatomie and then in the State of
the Union.

WALSH: Right.

SCHULTZ: Joan, why would one of the leading right wing hacks out
there, Karl Rove, come out and even talk about a Super Bowl ad? I mean,
this really must have gotten under their skin. What do you think of the
backlash on the Clint Eastwood ad?

WALSH: You know, I think really it`s fascinating, Ed. I think it
tells us a lot about American politics today because that was not a
political ad. Karl Rove was -- has a hissy fit over nothing. Clint
Eastwood is a conservative, has been a conservative.

But what that told me, Ed, is that they are starting to understand
that they`ve destroyed their brand. Their brand, Ronald Reagan`s brand was
optimism. They were the ones with faith in the country. They were the
ones who believed our brightest days were ahead. And they managed to pick
Democrats off in this kind of nervous nellies and very critical of the
country and not great believers in our spirit.

And what I think you`ve seen now is Karl Rove is terrified. When he
hears that language, it sounds like Barack Obama.

It wasn`t about Barack Obama, but it sounds like it.

That`s not good news for Republicans, and it shows how far that we`ve
turned a corner where the Republicans are the negative, nasty pessimistic
ones and the Democrats are the ones with the optimism.

SCHULTZ: I find it amazing. You know, you think back in the days,
E.J., of Karl Rove running the political machine for George Bush, it must
be a low day for him to have to come out and comment on a Super Bowl ad
that talks about creating jobs, where`s the pro-growth agenda here, big
guy? I mean, I just find it amazing.

DIONNE: Well, you know, he`s got to -- he`s a commentator now. So,
he`s got to talk about all trending items everywhere. So, that may have
had something to do with it.

But I do think that the Republicans, as Joan suggested, have really
put themselves in a box. I mean, FDR cornered optimism in his day. And
Ronald Reagan stole it back --

WALSH: Right.

DIONNE: -- stole it from the Democrats. And the Democrats kind of
played along and they were kind of grumpy and they were worried about the
direction of the country. I think Clinton stole it back from Reagan.

But now, what you have is the Republican completely abandoning
optimistic talk and in a way they have to because their political base
really believes the country is fundamentally on the wrong direction. So,
they have to keep saying these negative things.

SCHULTZ: Sure.

DIONNE: But I think the Chrysler ad really played much more to where
Americans are. We are optimistic and hopeful people.

WALSH: Right.

SCHULTZ: I mean, the voice, you know? I mean, the sternness of Clint
Eastwood, I mean, just taking you right down to the streets where the
people are who want a job and are going to turn it around, how can you give
up on `em, we can`t get knocked down by a punch -- I mean, it was all the
things that President Obama has been believing in since the day he went in
the office. Stick with the American worker and you never will go wrong.

I just -- I thought it was out of the park. And to have them respond
to it is even better.

Joan Walsh, E.J. Dionne, great to have with us tonight. Thanks so
much.

DIONNE: Good to be with you.

SCHULTZ: Chris Christie, Rush Limbaugh and Tom Brady`s supermodel
wife all made headlines at this year`s Super Bowl. That`s next.

And with Mitt Romney cruising to the nomination, Rick Santorum says
not so fast. And he`s got a good chance here to win in Minnesota tomorrow.
We`ll tell you about that. And Howard Fineman joins me for the discussion.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: More than 111 million people across the world watched the
New York Giants defeat the New England Patriots in the Super Bowl last
night. It was the most watched TV show in American history.

But there were a few things maybe you didn`t see. Patriot fans were
heartbroken to see a potential game-winning pass from quarterback Tom Brady
go through the hands of receiver Wes Welker. But Brady`s supermodel wife
caught on camera after the game throwing the receiver under the bus.

(BEGIN VIDEO CLIP)

FAN: Eli rules! Eli owns your husband.

GISELE BUNDCHEN, SUPERMODEL: The receiver didn`t catch the ball when
he was supposed to catch the ball. My husband cannot (EXPLETIVE DELETED)
throw the ball and catch the ball at the same time.

(END VIDEO CLIP)

SCHULTZ: Ouch, Gisele. Holy smokes. I guess she forgot the camera
was on there, huh?

Another person who didn`t realize he was on camera was Rush Limbaugh.
Rush was an invited guest of Patriot owner Bob Kraft and he was caught
digging for gold while the patriots find the end zone. I always knew Rush
had a nose for the football.

To be fair the patriots weren`t the only team with a conservative
blowhard hanging around. Check out the New Jersey governor, Chris Christi,
trying to hog the spotlight while the giants coach who deserve it, Tom
Coughlin, was being interviewed. Maybe Christi was looking for a job as
middle linebacker, I don`t know. It wouldn`t be a super bowl without false
outrage from the out ring. Madonna`s halftime show featured a message
about world peace. One of the performers was singer, M.I.A. who was from
England. Well, Dana Perino of FOX News took issue which foreign
involvement in the super bowl.

(BEGIN VIDEO CLIP)

DANA PERINO, HOST, THE FIVE: She looks an amazing. She is an amazing
performer. We all love the songs from the 80s. And she chooses M.I.A.,
not even an American, come out and to do saying about world peace?

(END VIDEO CLIP)

SCHULTZ: So, according to Dana Perino, you can`t deliver a message
about world peace unless you`re an American. The super bowl set a new
record for viewership, FOX News continues to set the record for the most
ridiculous things ever said on television.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: These are draconian provisions from the point of
view of airline organizing, no compromise here.

SCHULTZ: The war on workers continues in the congress. Will the
Democrats stand up?

UNIDENTIFIED MALE: A lot of people are giving me credit for that I
will accept that credit.

SCHULTZ: Will Donald Trump take the blame if Mitt Romney finishes
third in Minnesota. Howard Fineman has the latest before tomorrow`s big
vote.

And Republican race baiting on full display in this super bowl ad.

UNIDENTIFIED FEMALE: Your economy get very weak, ours get very good.
We take your jobs, thank you Debbie spend it now.

SCHULTZ: Today, the candidate behind the ad is doubling down.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to "The Ed Show." Thanks for watching tonight.

Well, this evening, Senate Democrats caved on union right. The Senate
passed a 64 billion dollar long term FAA funding bill including revision
making it extremely difficult for workers to unionize. The measure
stipulates employees cannot hold a vote on forming a union unless 50
percent of them sign a card agreeing to an election.

The Senate vote was 75-20 with majority of Democrats voting for it. I
don`t get it. The House of Representatives passed the bill on Friday, by a
vote of 248-169 over the passionate objectives -- objections of Democrats
like Congressman George Miller of California.

(BEGIN VIDEO CLIP)

REP. GEORGE MILLER (D), CALIFORNIA: Imagine if a congressional
election was run this way, to get on the ballot you first need majority of
all the voters in your district to sign cards saying they supported but you
opportunity know who they were and you didn`t know where they lived. We
wouldn`t participate in election under these conditions and yet we`re
insisting that American workers have their elections rigged in this
fashion.

I cannot support this bill. It undermines the rights of American
workers for no purpose. Other than to satisfy the demands of the
Republicans and their special interests backers.

(END VIDEO CLIP)

SCHULTZ: The anti-union provision is completely unnecessary to the
reauthorization bill for the FAA. The Republicans used it as an excuse to
bust unions and Senate Democrats let them get away with it.

Joining me tonight is Veda Shook. She is the international president
of the association of flight attendants.

Veda, nice to have you with us tonight. Harry Reid is selling this
bill and then voted for it as a compromise that creates jobs. How do you
see it?

VEDA SHOOK, PRESIDENT, ASSOCIATION OF FLIGHT ATTENDANTS: The anti-
union unnecessary insertion in this bill, there is no compromise, no
compromise at all. It`s a, you know, sending that into the FAA re-
authorization bill that is about funding, our nation`s aviation
infrastructure so it can be first class, world class, best in the world to
shove in this anti-union attack is no compromise, it`s a total victory for
the Republicans.

SCHULTZ: So, explain how this is a particular problem for workers
that are involved in mergers. I mean, we have seen takeovers in the
airline industry that affects actually hundreds of thousands of workers,
how does this change the dichotomy of all that?

SHOOK: Well, it`s incredibly dangerous for collective bargaining, for
in the case of a merger, because when this put into law is that it requires
50 percent of the workforce in order to have a union. And right now, with
the national mediation board you have to have 35 percent to file for an
election or election to be called.

So, if there is a merger and it`s on or about 35 percent or more,
there would be an election for union representation. You know if there was
one group was union and one group was non-union. In this case, one is 55
percent; one is 45 percent, 55 percent no union, say maybe delta airlines,
45 percent union, say like American airlines, collective bargaining
contracts, wiped out.

SCHULTZ: So this of course is going to let the big get bigger and
come in, keep organized labor out, so they can go after your pensions.
They can go after your health care. They can dictate your wages and make
it harder on the middle chase workers. I mean, that is how I read it.

But here is another thing. Barbara Boxer, John Kerry, Ron Widen,
Chuck Schumer, Jay Rockefeller and Harry Reid. You lost some real good
Democrats on this one, what happened?

SHOOK: Well, what happened was there was a sneak attack in the middle
of the night. So, we know that this congress right now has really a bunch
of do-nothings. But it`s amazing what deals they can crack in the middle
of the night behind closed doors. And that is exactly what happened here.

A secret deal was cooked up with Boehner and Reid, with where they
inserted and wrote this new language in the law that attacks our ability to
organize. And they didn`t involve labor sitting at the table. The workers
like myself that actually would be working under the railway labor act.
Now, they just, you know, did a secret deal. And what happened was then
when it was exposed when we came out and said look at what you`ve done.
They say, you know, it`s too late. This is the jobs bill. When you say
it` the jobs bill, it`s really anti-worker.

SCHULTZ: Yes, it is anti-worker, there is no doubt. This FAA re-
authorization bill has been going on for years and years, and basically it
looks like the Republicans wore down the Democrats to get exactly what they
wanted. They got that percentage, they know how hard it will be to
organize now especially after takeovers. It`s really unfortunate.

Veda Shook, appreciate your time tonight. Thanks so much for joining
us here on "the Ed Show." Keep up the fight.

SHOOK: Thank you, Ed.

SCHULTZ: Rick`s event. Rick Santorum is making a play here in
Minnesota ahead tomorrow`s caucus. Could it be his last chance to shake up
the race?

Newt Gingrich is in town, too. He says he will be in the race to the
bitter end.

Howard Fineman joins me for analysis, stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Rick Santorum revives the death panel myth. Will it help
him take the contest here in Minnesota? I tell you, he`s working the
Christian turf big time. The latest from the campaign trail and news with
Howard Fineman, next.

And the big finish tonight, Congressman Peter Hoekstra`s latest
campaign ad has even Republicans speaking out against it. Michael Eric
Dyson will join me for the discussion.

Don`t forget to tweet us using #edshow. Stay tuned. We will be right
back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to "the Ed Show" from Minneapolis tonight.
This is the state where Rick Santorum has a chance to walk away with
bragging rights in tomorrow`s non-binding caucus. Of course, Colorado and
Missouri have also got GOP contest tomorrow. There are big three that will
be taking place.

Rick Santorum leads in the latest Minnesota poll but not by much, but
he leads. Santorum has been campaigning among Minnesotans in the faith
community. It was a big mega church in Eden Prairie.

And of course, the agenda of the state matches up with Santorum.
There are four conservative ballot issues coming up in the state
legislature. Republicans are trying to pass the constitutional amendments
to outlaw gay marriage. They want a pass voter I.D. requirement and also
requirement of two-thirds majority for any kind of tax increase and of
course make Minnesota a right to work state. They are trying to bypass the
governor and get this through, which they could do.

Santorum has even revived Sarah Palin`s talk of death panel saying the
health care plans of both President Obama and Mitt Romney have similar kind
of cost containments.

(BEGIN VIDEO CLIP)

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: They are referred to these
types aboard as death panels. Why? Because they ultimately decide to
ration care to those procedures and people who they don`t believe these
procedures are effective.

So you have, again, government making decisions in rationing and
apportioning care based on research that shows what outcomes should be or
dictated by, you know, by the research that is out there.

(END VIDEO CLIP)

SCHULTZ: Of course there is no cost containment in the affordable
health care act, which amounts to a death panel. National GOP front-runner
is Mitt Romney. He isn`t campaigning here in Minnesota today, leaving it
to his surrogate, Tim Pawlenty.

But Romney`s other surrogate, Donald Trump, is happy to take credit
for the size of Romney`s Nevada win.

(BEGIN VIDEO CLIP)

DONALD TRUMP, MITT ROMNEY`S SUPPORTER: It was a lot riding on that
particular race and in Nevada, and it was interesting because the numbers
were much, much greater than he thought and a lot of people are giving me
credit for that and I will accept that credit.

(END VIDEO CLIP)

SCHULTZ: Romney has a strong lead in the latest Colorado poll, with
the voters.

Let`s bring in NBC News political analyst and editor and director of
"Huffington Post" media group, Howard Fineman.

Howard, great to have you with us tonight on "the Ed Show." One thing
about this, with these candidates, nobody looks good everywhere. Somebody
looks good somewhere, and this is the land of Michele Bachmann and Rick
Santorum, looks pretty good right now. But, say he wins tomorrow night,
what does it mean, if anything?

HOWARD FINEMAN, HUFFINGTON POST: Well, he has to win somewhere
tomorrow. Otherwise, it`s his last rodeo on a maybe his last rodeo anyway,
Ed.

I was talking to staff today, one of his top advisers, who say, you
know, they are running a lean, mean campaign, with low burn rate. Meaning,
they are not spending a lot of money on ads and whatever. But he has to
win again. So far the high point of his campaign was 34 vote recount
victory in Iowa after he spent two years in Iowa basically cultivating a
lot of the same kind of voters and in institutions that he is now doing in
Minnesota. And there`s a sort of relationship between those two states.

The Republican Party in Minnesota, as you know, Ed, is it very heavily
dominated by or certainly infused with evangelical Christians, conservative
Catholics who respond to the kind of appeals that Rick Santorum is an
expert at making. And so this is his spot. He`s got to win Minnesota. He
has got to do well in the beauty pageant in Missouri, which has no votes
attached to it, but Newt Gingrich is not on the ballot in Missouri.

So, Santorum`s people are saying it`s a beauty contest. But it`s one
when we have a straight shot at Mitt Romney. If he doesn`t win one of
these, and preferably for him one that has delegates attached to it, then
it is going to be very hard for him to continue after this week.

SCHULTZ: Can Newt Gingrich`s southern strategy take him all the way
to the convention? I mean, he`s a heck of a salesman, I watched him on
Saturday night after the results unfolded in Nevada. I mean, he sells
hard. I mean, this guy is believing that it will end up at the convention,
what do you think?

FINEMAN: Well, the thing about Newt Gingrich is he sells hard, until
the very moment that he folds. He has done both and did both as speaker
which of one the things that infuriated all his former friends from the
leadership on the Republican side. He`s utterly convinced of his
correctness and his historical significance until the moment he folds.

I think he has got no reason not to continue. First of all it`s
personal as we all know with Mitt Romney. Second, as long as he can
scrounge up money, to keep traveling, and by the way his campaign is in
debt. Actually Rick Santorum has got more money in the black than Newt
Gingrich does in his actual campaign coffers. If he can find the money to
keep traveling, Newt will keep doing it and he certainly going to keep
things going until Super Tuesday, until those big states that include
Georgia, his home state, and some other states where he has a chance to do
well.

Don`t forget, he did -- everybody knows he did well in the northern
that is southern part of Florida. He has a southern appeal. He`s not a
native of the south, as you know. But spent 20 years getting elected in
suburban Atlanta so, he knows how to talk the talk and walk the walk. And
there is no certainly no reason for him to fold as long as he can scrounge
the money together between now and Super Tuesday in early March.

SCHULTZ: Howard, great to have you with us tonight. Thanks so much.

FINEMAN: You`re welcome.

SCHULTZ: Howard Fineman, Huffington Post.

Next Republican Pete Hoekstra wants to be Michigan`s next senator.
Yet, his latest attack ad outraged members of his own party. Michael Eric
Dyson will weigh in on that. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Tonight in our survey, I asked will voters hold Republicans
accountable for trying to kill the American automobile industry. Eighty
eight percent of you said yes, 12 percent said no.

Coming up, Congressman Peter Hoekstra claims Democrats are playing the
race card after his new ad draws complaint. MSNBC political analyst,
Michael Eric Dyson, gives his take on an ad which I think is racist.

(COMMERCIAL BREAK)

SCHULTZ: And the big finish tonight, well, former Republican
Congressman Peter Hoekstra is in hot water over an attack ad he is sticking
by the ad as well. Hoekstra is running for Senate in Michigan. In his
latest campaign ad, hit democratic Senator Debbie Stabenow, it aired during
the super bowl. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Thank you, Michigan Senator, Debbie Stabenow.
Debbie spent so much American money. You buy more and more from us. Your
economy get very weak, ours get very good. We take your jobs. Thank you,
Debbie spent it now.

PETE HOEKSTRA, SENATE CANDIDATE: I think the race for U.S. Senate is
between Debbie spent it now, and Pete spent it not. I`m Pete spend it not
Hoekstra, and I approve this message.

(END VIDEO CLIP)

SCHULTZ: Needless to say folks on both sides of the aisle are calling
the ad racist, xenophobic and quote, "really, really dumb." The ad was
actually shot in California and produced by Fred Davis, the same Republican
media strategist behind Carly Friona`s demon sheep ads as well as this
modern classic.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I`m not a witch.

(END VIDEO CLIP)

SCHULTZ: To make sure all of the stereotypes and hooks for his ad
really sink in, Hoekstra`s campaign has set up a Web site featuring the ad
along with pictures of Chinese money, lanterns, parade dragon and
Stabenow`s face, the senator for Michigan, on a Chinese fan. Earlier,
Hoekstra was out defending the ad, telling the Detroit free press there is
nothing racist about it. Here is Hoekstra explaining the ad to WDIV.

(END VIDEO CLIP)

UNIDENTIFIED MALE REPORTER: Why show a woman in a rice paddy, why not
a factory worker in China?

HOEKSTRA: Well, these are all kinds of options. You could you show a
young woman we chose a young woman in China. Sure, we could have taken,
you know, someone working in a factory, an apple supply factory and in
China as well. You know, it`s a creative element.

(END VIDEO CLIP)

SCHULTZ: Creative element he calls it. Let`s turn to Michael Eric
Dyson, MSNBC political analyst, Georgetown University professor and the
author of "Can You Here Me Now."

Well professor, let`s just say it`s in poor taste for sure. I think
its racist, maybe there are a lot of Americans who don`t think it is. But
are you buying his comment that it`s a creative element, a woman in a rice
paddy, what do you think?

MICHAEL ERIC DYSON, MSNBC POLITICAL ANALYST: It is very creative.
It`s creative bigotry. It`s creative intolerance. It is creative
hostility and indifference to those who most vulnerable and poor. And
since he likes to play with names, Mr., if you will, Hoekstra, is out here
talking about Debbie Stabenow. He`s stabbing her now and stabbing us now
with the vicious epithets.

I think this is ridiculous, Ed. It`s another display that so many on
the right and far right are tone deaf to how their own insensitivity and
bigotry hurts and harms other people and then when they are called on it,
they try to give this plausible deniability. I didn`t mean that way.
You`re the one who is racist. You are hypersensitive. And as result of
that, they put the emphasis on everybody else but themselves.

SCHULTZ: A coalition of African-American pastors in Detroit, have
joined forces in condemning the ad. Here is a statement from Reverend
Charles Williams, pastor of the King Solomon Baptist church.

"The imagery in the ad is no different than the folks that had to put
black faced paint on and tap dance. This whole thing makes me so sad
because Hoekstra really doesn`t get it."

Is that an accurate assessment of what is going on here?

DYSON: I think so, Pastor Williams is from a church the King Solomon
Baptist church that hosted Malcolm x back in the 1960`s. He`s from a
tremendous tradition and heritage of social resistance. I think he`s
absolutely right.

Tone deaf, insensitive doesn`t get it, don`t understand. And not only
do they not get it, they don`t want to get it. The problem here is that by
using this broken English speaking Asian woman it not only reinforces
stereotypes about Asian people to begin with in isolation, but in
relationship to the arguments about China. It misportrays China as a land
of such vast ignorance that people don`t know how to master their craft.
The problem he`s having with China is because they have been superior.
They have master what they claimed to do. And so, I think that is part of
the misrepresentation here.

SCHULTZ: Senator Stabenow weighed in on the ad today releasing this
statement, "we had a super bowl with a lot of creativity and fun ads and we
had another ad from Chrysler about how we`re coming back and Pete Hoekstra
took us in the exact opposite direction."

Yet here`s what Hoekstra had to say on FOX News earlier. Here it is.

(BEGIN VIDEO CLIP)

HOEKSTRA: The bottom line is when Debbie Stabenow can`t defend their
record. Well, they will typically move to is they will to the race cards.

(END VIDEO CLIP)

SCHULTZ: What about that, professor? Are the Democrats playing the
race card every opportunity they get?

DYSON: Not at all. I mean to see race as a card is misleading
anyway. But if you see it as a card then the Republicans have been dealing
from the bottom of the deck from the very beginning. So to them, again,
claimed that Debbie Stabenow and those who defend her and those who find
offense this ad as playing the race card is to really shuffle along a
trajectory of ignorance and really object stupidity about what is racist
and what isn`t. We all get it. We know the signifiers are out there. The
symbolism is out there. You might be moving your mouth that we understand
what you`re saying.

SCHULTZ: Michael Eric Dyson, professor. Good to have you with us
tonight. I appreciate your time. And we should - we should say that
Hoekstra is in a primary fight and some of the Republicans in Michigan
certainly don`t think he is fit as a candidate.

That is "the Ed Show." I`m Ed Schultz. You can listen to me on
Sirius XM radio channel 127, Monday through Friday, noon to 3:00 p.m. You
can follow me on twitter, @edshow and like "the Ed Show" on facebook. We
love it when you do that.

Chris Hayes is in for Rachel Maddow tonight. Good evening Chris. Did
you enjoy the super bowl? Did you have a dog in the fight?

CHRIS HAYES, MSNBC HOST: You know, I was raised in the Bronx but I
was raised by a dad from Chicago and group of aero stand. So, I was
wishing the giants well, but I didn`t have my heart in it the same way my
fellow New Yorkers did.

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

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