updated 6/3/2013 12:30:42 PM ET 2013-06-03T16:30:42

THE ED SHOW
June 2, 2013

Guests: John Yarmuth, Jim McDermott, Bernie Sanders, Scott Prouty


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

If it`s Sunday, John McCain is running his mouth about Syria.

Turd blossom, he`s whining about the IRS.

And Congresswoman Marsha Blackburn thinks the best way to create jobs is to
repeal Obamacare? Ooh, we`ve got a dandy.

This is THE ED SHOW. Let`s get to work.

(BEGIN VIDEOTAPE)

(MUSIC)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We`re seeing progress.

REINCE PRIEBUS, RNC CHAIRMAN: The economy is going to go up and down.

OBAMA: The gears are starting to turn again and we`re getting some
traction.

REP. MARSHA BLACKBURN (R), TENNESSEE: Government can`t be the driver.

UNIDENTIFIED FEMALE: I think, absolutely, he`s got to focus on jobs.

OBAMA: The good news is today our businesses have created nearly 7 million
new jobs over the past 38 months.

UNIDENTIFIED FEMALE: Can Washington chew gum and walk at the same time?

OBAMA: Washington is not broken. It`s broken right now for a particular
reason.

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: There are 47 percent.

KARL ROVE, REPUBLICAN STRATEGIST: These memories will dissipate and new
memories will be created.

PRIEBUS: We`ve got to be the party for the 100 percent.

ARIANNA HUFFINGTON, HUFFINGTON POST: Seventy-three percent of people want
to focus on the economy, rather than on these scandals.

UNIDENTIFIED MALE: I must break you.

OBAMA: It`s not permanently broken. It can -- it can be fixed.

(END VIDEOTAPE)

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

I want to start tonight by showing you a very important number: 73 percent.
That`s right. A new poll shows that 73 percent of Americans think that job
creation is the most important thing, rather than investigating these
alleged Obama administration scandals. And if you`ve been watching this
show over the past month, you know, that you`re in the alleged 73 percent.
Only 23 percent think they should focus on Benghazi, the IRS or "The
Associated Press". And, of course, there are all members of the Grand Old
Party.

But I want to give you another number here this evening. Here`s the other
number: four, collectively. The major Sunday morning talk shows spent 4
percent of their time on jobs and the economy. Think about that. Out of
193 minutes of air time, the American people get seven minutes and 55
seconds. That is the number that was spent on issues of what matters most
to American workers and the American middle class that we`re trying to
save?

The majority of their time was spent talking about issues like scandals.
Only 22 percent of American people even care about that. Thankfully,
President Obama`s former senior adviser was standing by to kind of just
point this out.

(BEGIN VIDEO CLIP)

DAVID PLOUFFE, FORMER WHITE HOUSE SENIOR ADVISOR: The question is, is that
all Congress is going to do? Are we just going to be obsessed with scandal
and trying to score political points? Or the American people cannot be
screaming anymore loudly, "Worry about us, work on the economy." You`re
sent by us to do the job, to help us, to help the economy. The economy
continues to strengthen and grow. So, we ought to look at all of these
issues and look at them thoroughly.

But in the coming months, George, this is very important, because my
suspicion is the Republicans in Congress will stay too obsessed trying to
repeal Obamacare for the 40th time and less on the economy.

(END VIDEO CLIP)

SCHULTZ: Suspicion? There is suspicion that the Republicans might focus
on something else other than jobs?

Let`s not be so coy about this. Isn`t it time for the Democrats to go for
the jugular? There is no doubt Republicans will continue to tear down the
president by whatever means they possibly can. Republicans will continue
to ignore what the American people are focused on, saving the great
American middle class, 73 percent of Americans.

Congresswoman Marsha Blackburn wasted no time just laying out the
Republican Party`s master plan for job creation.

(BEGIN VIDEO CLIP)

BLACKBURN: The biggest impediment to job growth in this country right now
is the implementation of Obama care. The 29 1/2 hours, getting under 50
employees, health care becoming too expensive to afford. This program is
too expensive to afford.

(END VIDEO CLIP)

SCHULTZ: There you have it. It`s clear. The Republican agenda will be
focused on basically stealing health care from 30 million Americans. Let
me give you some more numbers tonight, folks. Since 1999, health care
costs in this country have gone up three times the rate of inflation. The
Republicans have done absolutely nothing to turn that number around.
Health care costs in this country make up roughly 18 percent of our GDP.

Obamacare addresses this. You can`t get dropped if you get sick by your
insurance company. Your coverage can`t be capped. Seniors are going to
get discounts. Seventeen million kids are protected because of pre-
existing condition clauses now and there. And 2.5 million students are now
on their parent`s plan.

These are all good things. Americans recognize that. That`s why 73
percent of the American people think the most important thing is to focus
on jobs.

But once again, here`s what we`re seeing. Exhibit A, the Republican Party
is ignoring what the people want and following their failed ideology. They
are lost in the wilderness.

You see, the numbers I`m giving you, this is evidence. This isn`t some
theory.

Let me give you some other numbers: 38 months of private sector job growth,
6.8 million jobs, 73 percent of the American people want us to continue
down that road of enhancing these numbers.

Now, if these were Bush numbers or Republican numbers, do you think we`d
hear the end of it? Hell, no.

I`m asking you the question tonight, liberals, when do we start touting
this as, we`re kicking ass? When do we start touting this as, the Obama
economy is working? Look at the market, look at these numbers.
Something`s working that`s very positive. This is where the country is.

The country`s not on Benghazi. We`ve had nine hearings. The country
doesn`t care about the Internal Revenue Service, because everybody that
gets audited feels like they`re being targeted. And the country just
doesn`t care what reporters do.

Now, I understand that there`s a fine line about protecting the freedom of
the press and all that kind of stuff. But the point is, if it`s about
security, aren`t we re-hashing the same conversation we had back in the
Bush years on the Patriot Act? Conservatives, what side are you on? Do
you want to protect the country at all costs or do you just want to get
Obama?

The Republicans now, with these numbers of 73 percent and 6.8 million jobs
created over 38 months. They won`t talk about these numbers. They will
turn it around and they will try to connect the IRS to kill Obamacare.
They will turn it around and even go so far as to say that we have to
repeal Obamacare to create jobs in America.

You know what creates jobs in America -- is when we, as Americans, make
sure that we have our lawmakers focused and they invest in American
workers. Buy American, good trade agreements, support American workers,
and most of all, investing in our infrastructure.

How many more bridges are going to fall down before Congress goes back and
says, you know what, maybe we ought to do something about this. And I will
offer to you tonight that this is not a Democratic problem. You will not
find one Democrat in the House or one Democrat in the Senate that is going
to stand up and say, you know what, we are really spending too much money
on road construction and bridges and infrastructure and water projects in
this country. We`re just spending too much money on it.

Once again, it is the Republicans obstructing the progress of this country.
It is the Republicans who are standing in the way of making us a better
country. They want to take from the poor. They want to give to the rich.
They want to make the tax code better for corporations, because they say
it`s not good enough as it is right now, even though a lot of them aren`t
even paying their fair share.

In the meantime, we crumple from within. And we`re told that we have to
take health care away from people to create jobs in America.

I find it utterly amazing, but I also believe in my heart that the
Republicans have never been so ripe for the taking. They have never been
so politically ripe for the taking. And now this, 2013, is going to be a
far more important year than 2014. We need to continue to build our
progressive infrastructure and don`t be talked down and realize that we
can`t be coy about great numbers, 38 months, 6.8 million jobs, when can we
say we`ve won?

When can the Democrats not be so shy about numbers that are great?

Get your cell phones out. I want to know what you think. Tonight`s
question, are you sick of Republicans cooking up scandals? Text "A" for
yes, text "B" for no to 67622.

You can always leave a comment at our blog at Ed.MSNBC.com. We love your
tweets as well. We`ll get you the results of all this because we get out
of here tonight.

I`m joined by Congressman John Yarmuth of Kentucky, Congressman Jim
McDermott of Washington, and E.J. Dionne of "The Washington Post."

Gentlemen, good to have you with us tonight.

E.J. DIONNE, WASHINGTON POST: Good to be with you, Ed.

UNIDENTIFIED MALE: Good to be here.

SCHULTZ: Congressman McDermott, what`s your reaction to Marsha Blackburn
saying that repealing Obamacare will create jobs?

REP. JIM MCDERMOTT (D), WASHINGTON: In fact, it`s been one of the places
that jobs have been created in the last, since the Obama care went in
place. Americans want this change, and what is driving the Republicans
crazy at this point is the fact that Obamacare is actually going into
effect and the American people are seeing the positives of it and are
saying, gee, they never told us that.

Well, they are now being exposed for the deception that they`ve tried to
run on the American people, and repealing health care simply is not what
the people want. They saw all that before the last election. And the
people said, we don`t want it repealed, we want more of Obama. And they
gave him a bigger election this last time. So the Republicans are just in
the wrong track.

SCHULTZ: Well, they speak in generic terms. They talk about regulations,
but they never identify exactly what is going to happen that is going to
hurt the job market. Most of Obamacare has already been implemented, and
yet we`re still headed in the right direction when it comes to creating
jobs in this country.

Congressman Yarmuth, to do Republicans care more about bringing down the
president with scandals than they do creating jobs?

REP. JOHN YARMUTH (D), KENTUCKY: Well, I don`t think there`s any question
about that, Ed. And basically, their problem is that the one thing that
they think that will create jobs, which is cut people`s taxes, cut the
taxes for the very wealthiest Americans, they tried for ten years. It
didn`t work in creating jobs, and now they`re without any ideas.

And you know, when you talk about health care, you have to remember, going
back to 2009 before, or while we were debating the Affordable Care Act,
premiums in this country were going up 38 percent. They were almost -- a
year. There were almost a million bankruptcies a year. Those bankruptcies
will now be eliminated under the Affordable Care Act. Rates are now rising
at a very, very slow rate. We`ve held costs down in Medicare to less than
half of the growth rate that we had before.

So, those things all strengthen the economy. And just one anecdotal piece
of evidence from my district, Humana Insurance Company is based here.
There are now 2,000 more employees at Humana than there were before the
Affordable Care Act.

SCHULTZ: Well, that`s because they`ve got more customers, I would imagine.
They`ve got 30 million more people who are coming in, that are getting
insured. We`re having better outcomes. We`ve got more on this on how it`s
expanding Medicare, its years of existence and solidifying that. We`ll get
to that later.

E.J. Dionne, do you think Republicans are going to be able to ignore
numbers like this? Seventy-three percent of Americans want them to work on
the economy and they simply will not do it. What`s the political downfall,
if any?

DIONNE: Well, I think they`re going to try, but what I think you`re seeing
in the numbers on President Obama`s approval is just as Americans care more
about the economy than the so-called scandals, so is the president holding
up his popularity in most of the polls, because Americans can feel this.
You see it in the numbers about economic confidence, looking forward.

And I think it`s really important to talk about health care. I think
Democrats and liberals have shied away from talking about it --

SCHULTZ: Yes, they have.

DIONNE: -- because they look at polls and say, gee, this is unpopular. So
the only people left talking about it are on the other side.

And I think Congressman Yarmuth made a very important point. We are
finally beginning to get a handle on health care costs, which in turn is
going to help our budget problem. It`s helping it on Medicare.

It`s not all Obamacare. No one`s saying that. But Obamacare so far has
played a positive role on an issue that conservatives keep telling us is a
very important issue.

SCHULTZ: Congressman McDermott, what are the chancing of getting the
Republicans to work with you to pass some kind of jobs package between now
and the midterm? Or is that a bridge too far? No pun intended.

MCDERMOTT: I think, Ed, we`ve had evidence already that it`s a bridge too
far.

Newt Gingrich said in 19 4, if we`re going to take the House over, we`re
going to have to attack the Democrats. And it took him ten years to get
the House and that same thing is going on now, as scandal after scandal,
that is their only strategy. They cover it with a kind of ideology, but
basically, their political maneuvers are all personal attacks on people.

SCHULTZ: Congressman Yarmuth --

MCDERMOTT: The IRS, Benghazi --

SCHULTZ: Congressman Yarmuth, it`s --

MCDERMOTT: It`s all there.

SCHULTZ: It is all there. And that`s all they have right now. And for
them to go so far as to say that we`re going to create jobs by repealing
Obamacare is just beyond the pale. I mean, they`re willing to take health
care away from millions of Americans to get their political power back.

Congressman Yarmuth, what about a disaster relief package? Is there going
to be a big fight over that?

YARMUTH: Well, it`s going to be interesting, because you now have the most
recent disaster in a very red, Republican state of Oklahoma. But, you
know, the real key here is, we`ve got evidence from around the world, we
look at what`s happened in Europe with an unemployment rate of 12 percent,
when the government`s backed out of helping to support the economy.

We`ve got lots of great things, what we can do in this country, building
infrastructure. I know we`re going to talk about that later. And disaster
relief does stimulate the economy. No question about that.

SCHULTZ: Austerity is not working in Europe. They have got all kinds of
economic problems, further than what we have ever imagined.

YARMUTH: Exactly.

SCHULTZ: E.J. Dionne, Congressman Yarmuth, Congressman McDermott, stay
with us. We`ve got a lot more to talk about tonight.

Remember to answer tonight`s question at the bottom of the screen. Share
your thoughts with us on Twitter @EdShow and on Facebook. We always want
to know what you think.

John Boehner takes a break from working on his tan this week and I`ll tell
you what he`s not working on.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: Hell, no, you can`t!

(END VIDEO CLIP)

SCHULTZ: And later, the Affordable Care Act lives up to its name. Senator
Bernie Sanders, independent from Vermont, joins me to discuss the good news
for Medicare.

Stay with us. We`re right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SCHULTZ: America doesn`t have a spending problem, Republicans, it has an
infrastructure problem. You know, we`re so worried about kids getting shot
up at schools, but we`re not too worried about their buses crossing
bridges, are we?

This is unacceptable, and it`s a result of Republican austerity and their
absolute attitude towards what infrastructure is all about in America.

(END VIDEO CLIP)

SCHULTZ: Yes, yes, yes, that was last week. We talked about
infrastructure. We pointed out the need for Congress to step forward and
do something about crumbling bridges in this country to create jobs. Well,
our infrastructure is crumbling in America, followed by a lack of
commitment to fix our roads and our bridges.

Well, the weather just continues to tear out portions of the country.
Lawmakers were on vacation this week when they had a chance to go home and
see firsthand what Americans are concerned about.

Republicans were conveniently out of the office, while another deadly
string of tornadoes struck the Midwest. Even as the severe weather tears
up our nation`s roads and homes, Republicans prevent states from getting
the help that they desperately need. How can they fight over that? But
they do.

The bridge that collapsed in Washington state a couple of weeks ago I going
to cost more to repair and the temporary bridge isn`t going to be ready for
the next few weeks to come. Although the conversation of infrastructure
seems to escape this Sunday morning talk shows, you know? Instead,
Republicans want to talk about the same-old two-word slogans, like spending
addiction, tax cuts, government takeover, repeal Obamacare.

I`d rather focus on a two-word phrase, "rebuild America." Rebuild America
is where we need to be in this country. That`s where we are.

But right now, standing in the way of rebuilding America is an ideology
coming from the Republicans that, basically, has the country stuck in the
mud.

I`m joined again tonight by Congressman John Yarmuth, Jim McDermott, and
E.J. Dionne.

E.J., you first on this statement. Can we make a declarative statement
that Democrats are not the problem when it comes to infrastructure
spending. That there is one party that does recognize and is willing to
make a strong commitment in this area. It is the Republicans that`s
holding everything up.

Your thoughts?

DIONNE: Well, I don`t think Democrats are raising this issue enough or
reminding people that there was a day when Republicans were as committed to
this sort of investment as Democrats were. You know, sometimes, I think we
just got the wrong word. Infrastructure is such a boring word.

Henry Clay --

SCHULTZ: It`s hard to rally around a bridge, I admit it. There`s not a
whole lot of emotions in there.

DIONNE: At least a bridge is concrete. Henry Clay, the 19th century
politician used to talk about internal improvements -- I like that a lot
better.

And there`s another term we could use, which is, capital investment. You
know, we`ve heard the term "job killers" from conservatives. Well, what
kills jobs is when people can`t get their goods to market when the roads
aren`t good. What kills jobs is when our railways don`t work the way they
could.

We could be investing in things that are good for the long-term of the
country and actually help the private economy. And we ought to talk about
it a lot more than we do.

SCHULTZ: Well, let me tell you about the results of this bridge falling
down. According to "The New York Times," sales are down 50 percent to 80
percent in the areas surrounding the collapsed bridge.

Congressman McDermott, can we fix this problem in your state? And this is
lost business, this is going to affect families. Many small businesses
operate, maybe, month-to-month. You know, this business interruption is a
big deal. Where do we go?

MCDERMOTT: Well, you know, Ed, we have not raised the gas tax since 1963.
Now, gasoline consumption has gone down, so the amount per gallon isn`t
bringing in the money. We have to have more money in our road fund and the
bridge that went down is the link between Canada, which is our number one
trading partner, and California. Everything that goes from California
north goes up I-5. And here you take out a bridge right the in the middle
of it, and you are going to have impacts from that.

That`s happening all over the country. There is no excuse for it. We know
where the bridges are. We simply don`t have enough money to do it.

And it`s only political will that stands in the way of us creating jobs
that pay decent wages, that will get the economy going, and also give us a
return to Eisenhower, for heaven`s sakes -- when you have to think about
Eisenhower as the great infrastructure guy.

SCHULTZ: That`s going back a long, long time. There`s no doubt about
that. Of course, that`s how they fund bridges in Minnesota as well, is
through the gas tax. And a lot of states do that.

But, Congressman Yarmuth, looking at this fight that`s coming up over
disasters, if we can`t fund disasters and we can`t fund bridges, if we`re
stuck in the ideological hedge row country where nobody can move, what
happens? What is it going to take to move the other side, to get them to
recognize that we are playing with people`s lives and this is important
stuff, it is hard to emotionally rally around a bridge being built.

But have we lost the sight of what`s important and what is needed in this
country, because we`re so politically bent?

YARMUTH: Well, I think that`s right. And when you have Republicans, for
just the last 20 years or at least, talking about, we`ve got to cut
spending, we`ve got to cut spending, you know, that has resonates with
people and they don`t stop to think what that means. That it does mean,
actually, that we lose our infrastructure, we lose our law enforcement, we
lose our education system, we lose ground and research.

You know, we had a bridge here in my district connecting Indiana and
Kentucky, I-65, that was closed for six months for repairs, because,
fortunately, they found cracks in the foundation, were able to fix them.
Our economy suffered just as much then.

But, you know, there`s an idea out there. We talked about this the other
day on your radio program. John Delaney, my Democratic colleague from
Maryland, has an idea to allow the companies who have parked a lot of cash
overseas, profits that they would like to repatriate to this country, let
them come in and buy bonds that have a very, very low rate of return, that
would then be used to fund infrastructure in this country and create jobs
and make the kind of repairs in our infrastructure that will guarantee that
our businesses have the ability to thrive going forward.

SCHULTZ: That`s an idea. That`s an idea. That`s a proposal. We don`t
even get that out of the Republicans. They are null and void of any idea
or process that would take us to a better infrastructure in this country.

E.J. Dionne, how does the president play this?

DIONNE: First of all, I do think he needs to raise the issue more than he
has. He`s proposed this. He`s proposed an infrastructure bank.

Congressman Delaney`s idea, actually, is an interesting, sort of addition
to the president`s idea. And he`s got to remind people that we built
ourselves as a country over 150 years. This goes way back to a time when
Republicans, and Whigs for that matter, like Clay and Lincoln, all the way
through to Eisenhower, knew that if we wanted to be a country that was
moving forward, we had to make these investments.

SCHULTZ: Yes.

DIONNE: They are legitimately investments. This isn`t just liberals
trying to paste the investment label over spending.

SCHULTZ: I want to finish with you as well, E.J. Dionne, because why does
it seem like major media people in this country are afraid to say 38 months
of private sector job growth and 6.8 million jobs created? It`s almost as
if we`re ashamed of these numbers. Nothing`s ever good enough anymore?

What`s happening? This is -- this is a hell of a run.

DIONNE: Well, I`ve got to say, it troubles me that in the media, we, "A",
don`t talk about economics enough, as it relates to working people. Both
the jobs created, and the jobs we still need to create, which is why we
need to invest in infrastructure. And we`re much more comfortable talking
about everything around inequality and the problems working families have,
of the ombudsperson at "The New York Times," the public editor said, why
don`t the poor ever get into the newspapers these days?

Let`s start talking about middle-income people, poor people, what they
need, and the fact the job growth is the most important thing to them.

SCHULTZ: Gentleman, thank you for coming in and working on a Sunday. I
appreciate it so much.

Congressman John Yarmuth, John McDermott, E.J. Dionne -- thanks so much.

Coming up, conservative math fails again.

(BEGIN VIDEO CLIP)

REP. PAUL RYAN (R), WISCONSIN: We see this bill bankrupting Medicare, we
see this bill destroying the health insurance system.

(END VIDEO CLIP)

SCHULTZ: Really?! I didn`t know that.

Senator Bernie Sanders on how the law is saving Medicare.

And Ted Cruz is talking about the 47 percent. The man who changed Mitt
Romney`s life with a video camera is back on THE ED SHOW tonight.

But next, I`m taking your questions live. "Ask Ed Live" is just ahead here
on MSNBC.

Stay with us. We`re coming right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

We love hearing from our viewers. The Twitter activity is fantastic and
that`s why we have this segment. And that is "Ask Ed Live". I get the
questions about 30 seconds before I come on the air here.

The first question is from Rose Lee. "How can we get unions back?"

Well, unions are still very much in existence in America, but 80 percent of
union membership is concentrated in 16 states across this country. And
when you look at the attack on labor that has taken place in America, all
of this right to work legislation that is being proposed on the state level
is very detrimental to organizing. It`s going to take a lot of people in
the Congress who are willing to go for the Employee Free Choice act and
give the power to the workers in the workplace to organize, protect
themselves, and also advocate for better wage, better pension, better
health care. It can happen. You`re never going to get it out of the
Republicans. You will get it out of the Democrats.

In fact, if you are a wage earner, I would like to know, why would you ever
even think of voting for a Republican? Unions can save the middle class in
this country, because unions built this country.

Our next question comes from James Mills. He says, "How would you advise
President Obama to deal with Congress?" Well, it`s not so much dealing
with Congress. And I`m not diverting from your question, as it is, dealing
with the American people.

If Ed Schultz was sitting in the Oval Office, and say I had Axelrod`s job,
as I used to have, or Gibbs` or someone like that. If I was actually
someone who was advising the president, I would turn President Obama into
the biggest gladiator for health care that the face of the earth has ever
seen.

I would force him, through conversation, not force him, I would say, Mr.
President, you have to go round two of health care. They are attacking us,
they are attacking American families. They are easy pickings. We have won
this argument.

Let`s go for round two. You have nothing to lose. Let`s start talking
about universal health care. Let`s definitely start talking about the
public option, but let`s go for the whole ball of wax. We`ll win if we d
that.

And speaking of the "Gladiator", I believe that there was a line in that
movie that said, win the crowd, you win your freedom. A lot of people will
be free if they have health care in this country.

We`re coming right back.

(COMMERCIAL BREAK)

SCHULTZ: Real talk time. Thanks for watching us tonight. Welcome back to
THE ED SHOW.

The scandal-obsessed Republicans still keep trying to take the focus away
from what really matters to people in this country. What really matters to
most Americans are things like the big three.

So, I have some bad news for Republicans tonight. You know, this week, the
Social Security and Medicare board of trustees released their annual
report. By the latest calculations, Medicare`s main trust fund will be
fully solvent through the year 2026. That`s two years longer than
projected, just last year, and over a decade later than what trustees
projected back in 2009. And I have some more bad news for Republicans.

(BEGIN VIDEO CLIP)

JACK LEW, TREASURY SECRETARY: The Medicare report demonstrates once again
the importance of the Affordable Care Act, which has strengthened
Medicare`s finances by reining in health care cost.

(END VIDEO CLIP)

SCHULTZ: That`s right, folks. Remember when Republicans were out there
pushing this story?

(BEGIN VIDEO CLIP)

ROMNEY: There`s only one president that I know of in history that robbed
Medicare $716 billion to pay for a new risky program of his own that we
call Obamacare.

RYAN: The president raised $716 billion from the Medicare program to pay
for the Obamacare program.

PRIEBUS: This president stole, he didn`t cut Medicare, he stole $700
billion from Medicare to fund Obamacare.

(END VIDEO CLIP)

SCHULTZ: And the reality is, Obamacare has done the opposite. It`s taking
$700 billion in wasteful spending and using it to extend the life of
Medicare. Now, this year`s projections for Social Security are basically
unchanged from last year, with the Social Security trust fund set to run
out of money in 2033.

Deputy Labor Secretary Seth Harris offered his take on how to keep moving
forward.

(BEGIN VIDEO CLIJP)

SETH HARRIS, DEPUTY LABOR SECRETARY: One of the most important steps that
could be taken to shore up the Social Security and Medicare trust funds
would be for Congress to enact President Obama`s agenda to create jobs and
raise workers` wages.

(END VIDEO CLIP)

SCHULTZ: He exactly right. But there`s one part of President Obama`s
agenda which has progressive out there very concerned. And that is the
offer to switch to a chained CPI formula for Social Security.

Any defender of the big three knows that that`s really just political speak
for cutting benefits. No one knows this better or has fought harder to
protect those benefits than my next guest.

Joining me tonight, Senator Bernie Sanders, independent from Vermont.

Senator, good to have you with us tonight.

This report from the trustees, the board of trustees, their annual report,
pretty much is evidence that what we`re trying to do in the progressive
agenda in this country is correct for people. Your thoughts?

SEN. BERNIE SANDERS (I), VERMONT: Well, what it tells us is what everybody
who studied the issue already knows. And that is, Ed, Social Security can
pay out every benefit owed to every eligible American for the next 20
years.

Despite our right-wing friend`s assertion, Social Security is not going
bankrupt, it is not in crisis. What our goal is first to prevent any cuts
to Social Security, because you know and I know that millions and millions
of seniors are just hanging in there economically, having trouble buying
their prescription drugs, keeping their homes warm in the winter time. We
must not cut Social Security.

The so-called chained CPI would make a cut of $650 ten years out. If
you`re 65, by the time you`re 75, $650 a year less than you otherwise would
have gotten also makes cuts and benefits for disabled veterans
unacceptable.

SCHULTZ: What about Medicare? I mean, this is the most positive news that
Obamacare, because this was a focal point of what the Republicans were
saying before the last election. Were they lying?

SANDERS: Yes. I mean, the bottom line is, one of the reasons that we are
making substantial progress in cutting the deficit has to do with the fact
that spending and health care in general and in Medicare is going down.
That is really good news. And in fact, some of what we have done in the
Congress through the Affordable Care Act has squeezed some of the waste out
of health care and also, we have done a better job in terms of wellness and
disease prevention, which is going to pay dividends in years to come.

Having said that, Ed, we have got to be mindful that today, we continue to
spend twice per capita on health care as do the people of any other nation
despite having millions of people with no insurance. And that is why in my
view, we`ve got to go beyond Obamacare, move to a single-payer health care
system, which can guarantee health care to all people in a much more cost
effective way.

SCHULTZ: So, we`re on the same page. I was asked the question by our
viewers tonight in the "Ask Ed" segment, what would you advise President to
do?

We`ve got to go round two. We`ve got to do round two of health care. If
they want to keep voting Obamacare down in the House, you`ve got to be
offensive and go after it the other way and counter it and say it`s time
now to go to round two and talk about universal health care, because
universal health care polls better than anything else in medical coverage
provided in this country. And we don`t talk about it enough.

SANDERS: Ed, I just had the ambassador from Denmark coming to Vermont a
couple of weeks ago. In Denmark, this is what he told us. All of their
people have universal health care, you go to a doctor, you don`t take your
wallet out. You go to the hospital, you don`t take your wallet out, and
they end up spending about 50 percent per capita of what we spend on health
care, because they don`t have for-profit health care systems, health care
insurance companies ripping off the system or all of the waste and
bureaucracy that we have.

They put a much greater emphasis on primary health care, which is the right
thing to do for people`s health and it saves money long-term.

SCHULTZ: What about the Democrats protecting Social Security and not
getting on this chained CPI bandwagon? I mean, how much of a push is it
going to take to get that off the table?

SANDERS: All right. Let me give you the bad fuse and let me give you the
good news. The bad news, as you know, the president has proposed this so-
called chained CPI. The good news is I offered an amendment during the
budget debate and it got passed unanimously, and the resolution was, in
opposition to a chained CPI.

Nobody wanted to stand up, nobody. And say, I think it`s a good idea to
cut Social Security. Tom Harkin introduced the resolution. He has 18 co-
sponsors on that, no cuts in chained CPI.

Also, this is what I`m perceiving and why I believe, Ed, we`re going to win
this, because the average politician out there, when he or she is running
for office and gets back to their district, you know what, they`re not
campaigning on, I`m going to cut Social Security and benefits for disabled
veterans. That may sound good in Capitol Hill, but it does not sound good
among the American people, who overwhelmingly understand that the way to
deficit reduction is end to these huge corporate loopholes, one out of four
corporations, not paying a nickel in taxes, at a time when the wealthy are
becoming phenomenally wealthier, ask them to start paying their fair share
of taxes.

Don`t cut Social Security, don`t cut Medicare.

SCHULTZ: Senator Sanders, always a pleasure. Good to have you with us on
this Sunday evening. Thank you so much.

Tonight in our survey, I asked you, are you sick of Republicans cooking up
scandals? Ninety-nine percent of you say yes, 1 percent of you, I guess
you can`t enough of it.

John Stossel goes from homeless to tactless. That`s right. Tactless.

We`re taking this pretender to the cleaners, next.

(COMMERCIAL BREAK)

SCHULTZ: And for our pretender tonight, a classic 5-50. You know, 5-cent
brain, $50 hair cut. Tonight`s 5-50 is John Stossel, FOX Business
Channel`s resident libertarian has been on a crusade to attack American`s
most vulnerable people, that`s right -- the poor, the homeless. Stossel
unloaded his latest load of garbage on the curvy couch earlier this week.

(BEGIN VIDEO CLIP)

JOHN STOSSEL, FBN: Think about the depression. That was before this was
any welfare state at all. How many people starved? No one.

UNIDENTIFIED MALE: Right.

UNIDENTIFIED MALE: Good point.

(END VIDEO CLIP)

SCHULTZ: Good point? Really.

Stossel really impressed Steve Doocy with his fraudulent knowledge of basic
American history. But anyone with half a brain knows how dumb the
statement was.

Luckily enough, Stossel has a half a brain. The next day, he tweeted a
non-apology apology. Stossel can pretend, he can pretend that he really is
understanding how dumb he was, but he has a long history as a faker.

Last year, the highly paid TV host dressed up like a homeless man and
proved another fraudulent front, which Stossel dropped some knowledge on
Doocy.

(BEGIN VIDEO CLIP)

STOSSEL: I had heard that some people beg for a living and can make big
bucks.

(END VIDEO CLIP)

SCHULTZ: Big bucks! Stossel knows a thing or two about big bucks.

When he isn`t pretending to be homeless, Stossel picks up a fat check from
this guy. It`s really easy to look good on TV when you have a crew of
highly qualified union stage hands. If John Stossel had the guts to go out
and meet real Americans, maybe he wouldn`t say dumb things.

But acting like a homeless man and using weak research on the depression
makes John nothing but a dumb pretender.

(COMMERCIAL BREAK)

SCHULTZ: And we`re back. Here`s a story for the folks who take a shower
after work. Yes. Segment we do here every night on THE ED SHOW.

Think about that. We got news for people who take a shower after work, the
real workers of America. Republicans lost big time last year because they
alienated middle class voters.

Mitt Romney was toast after this video surfaced.

(BEGIN VIDEO CLIP)

ROMNEY: There are 47 percent of the people who will vote for the president
no matter what. My job is not to worry about those people, I`ll never
convince them that they should take responsibility and care for their
lives. What I have to do is convince the 5 percent to 10 percent in the
center that are independent.

(END VIDEO CLIP)

SCHULTZ: Still music to my ears.

Apparently, Republicans they haven`t learned anything since the last
election. Listen to what Tea Party senator of Texas Ted Cruz said this
week.

(BEGIN VIDEO CLIP)

SEN. TED CRUZ (R), TEXAS: I got to tell you, as a conservative, I cannot
think of an idea more opposite what we believe.

(APPLAUSE)

I think Republicans are and should be the party of the 47 percent.

(END VIDEO CLIP)

SCHULTZ: Are and should be? Either you are or you aren`t.

Ted Cruz talks a good game, but pandering to a mythical 47 percent, it
isn`t going to apply.

Here`s what Cruz really telling working families with his actions on
Capitol Hill. He`s sponsored three different bills and amendments to
repeal or defund Obamacare so far. Cruz`s first floor speech as a senator
was about gutting Obamacare. Cruz otherwise voted against hurricane Sandy
relief because he said it wouldn`t have enough money to help families and
small businesses.

In the next breath, Cruz voted to increase funding for a missile defense
shield, for the same part of the east coast hit hardest by the storm. Best
of all, Cruz sponsored an amendment to kill federal labor regulations.

Senator Cruz wants to turn labor regulations over to the states and kill
federal oversight all together.

Here`s what happens when we don`t have good federal regulations for workers
in this country. This is when deregulation looks like in Bangladesh. At
least 11,027 low wage workers died when their factory collapsed in April in
Bangladesh. Employers get to build unsafe sweat shops terribly unsafe
environment to work in without a damn government regulation.

Joining me now is the man who made the words 47 percent famous, Scott
Prouty.

Scott, good to have you with us tonight.

I know you`re going to Bangladesh and we`ll talk about that in a moment.
But I want to know your thoughts, what if Senator Cruz`s world was reality?
And he gets his way on workers` issues? What would it do?

SCOTT PROUTY, RECORED 47 PERCENT VIDEO: You know, thanks for having me,
Ed. Last couple months, I`ve had the privilege of traveling around the
country and I`ve met with hundreds of steel workers all over from
California to Wisconsin to Philly.

And, you know, when I say steel workers, they make paper, they make
plastics, they make chemicals, glass and rubber. These people are red,
white and blue Americans. They`re regular guys and women and they are
really the backbone of American manufacturing. And the thing that I`ve
seen from meeting them is I think they want -- what they want is fair wages
and they want safe working conditions.

And at the end of decades of service, I think they hope to retire with
dignity. And, you know, I don`t think that`s too much to ask for and it`s
hard to emergency why it`s a priority right now too after people like them.

SCHULTZ: Wouldn`t it be a disaster if it was turned over to the states?
States would be able to do whatever they want with workers. Is that a
bridge too far to think about, that we would become somewhat of a
Bangladesh and would be so much conditions up safe in America? Would it go
that far?

PROUTY: I think it does. Bangladesh it seems like it`s a world away, but
for me it`s a perfect example of what happens when corporations don`t have
some oversight when workers don`t have the ability to bargain collectively.

You know, corporations time and time again, they show that they will take
the short cuts in regards to safety. They`re willing to pay near
starvation wages if they can get away with it. And, you know, Bangladesh
is a perfect example.

SCHULTZ: Why are you going there?

PROUTY: I`m heading over next week with the Institute of Global Labor and
Human Rights. There`s a lot of people you mentioned over 1,000 people were
killed, the injuries are absolutely horrific, crushing injuries.

And those people, their lives are basically over. There`s orphans, there`s
people that don`t have anything left. And so we`re shooting to go over and
just help out in any way we can, and try to provide some comfort for them.

SCHULTZ: Keep up the fight, Scott. We can`t let it get to a state level.
That is the bottom line. Scott Prouty, thanks so much.

That`s THE ED SHOW. I`m Ed Schultz: We`ll see you back here next
Saturday, 5:00 p.m. Eastern Time.

Have a good one.


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