updated 7/29/2013 2:40:03 PM ET 2013-07-29T18:40:03

THE ED SHOW
July 27, 2013
Guests: Lee Gaddies, Lionel, Nina Turner, Mark Begich, Tom Harkin


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

Well, it`s 5:00. Let`s get to work.

(BEGIN VIDEOTAPE)

(MUSIC)

GLENN BECK, RADIO HOST: The left is trying the paint Detroit as a
Republican failure.

SCHULTZ: There is no way that you can lose 300,000 manufacturing jobs and
have a sustainable tax base for the city of Detroit.

BILL O`REILLY, FOX NEWS: Raise hustlers and the grievance industry have
intimidated the so called "conversation."

SCHULTZ: Make no mistake: Detroit is going bankrupt is exactly what the
Republicans want.

STEPHEN COLBERT, COMEDIAN: The easiest explanation for Detroit`s decline
is it`s all the union`s fault.

O`REILLY: Enough is enough.

UNIDENTIFIED MALE: We are people that sacrifice our lives. We may not
come home one day. So, to look at us as a spread sheet is to me un-
American.

UNIDENTIFIED MALE: I feel betrayed. I think all the retirees feel
betrayed.

UNIDENTIFIED MALE: What we need is consistent policy from Washington.
Consistent policy from state capital in Lansing. We need people to support
us instead of their back at us.

BECK: There will always be those people that you can never help.

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: There are 47 percent who
are with him, who are dependent upon government, who believe that they are
victims.

Let Detroit go bankrupt.

UNIDENTIFIED MALE: We may be one of the first. We are the largest. But
we absolutely will not be the last.

(END VIDEOTAPE)

SCHULTZ: Did you hear what Glenn Beck just said? He says there`s always
going to be people out there that you just can`t help.

Really? People that have worked for 35 years and paid into a pension fund.
We can`t help them. That`s a great place to be, Beckster. You ought to
change the name of your Web site to "blazing saddles" instead of "The
Blaze."

A major federal court ruling this week has cleared the way for Michigan
Governor Rick Snyder to put Detroit through bankruptcy. Federal ruling.
State law doesn`t matter. State constitution doesn`t matter.

Governor Snyder, do you know what he`s getting everything he wants. The
conservatives are getting everything they want. This is the road to
privatization. A lot of city assets are going to be divided up,
privatized. City workers, they`re going to have to take a huge cut.

But remember, Glenn Beck said, there is always going to be some people that
you just can`t help, even though they paid into it.

This is the systematic destruction of an America city. It`s a government
coup, basically, without violence. And it`s completely unjustified and
unnecessary. Now, why am I all over this story?

I want to explain the coverage on THE ED SHOW. This, my friends, is a live
government takeover, right before our eyes. We are seeing local elections
being circumvented. We are seeing people being put in place that have
authority. Not by way of the people and making decisions that affect
people`s lives.

That is a government takeover. The voices of the people are not being
heard in any of this, although we are being told by Snyder that they`re
going to have a seat at the table. That`s hog wash.

Meanwhile, we have some breaking news here on THE ED SHOW tonight:
conservatives are angry with me. Righties are upset because I correctly
said, Republican policies trashed the city of Detroit and it did.
"Trashed" is the right word.

This week, roughly 35 articles were written about my Detroit commentary on
this program last weekend. And most of these reports cherry picked a few
sentenced and failed to mention and missed my main point.

Ex-FOX News host Glenn Beck even highlighted the segment earlier this week.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Here`s the thing about Detroit: for 51 years, they`ve
elected progressive Democrats who have apparently instituted Republican
policies. I think that`s deceitful and wrong.

BECK: Here is the thing. The left is trying to paint Detroit as a
Republican failure.

UNIDENTIFIED MALE: I don`t even know how --

BECKEL: I don`t -- it doesn`t even --

(END VIDEO CLIP)

SCHULTZ: So state government has nothing to say about the city of Detroit?
You guys need a civics lesson.

Now, it wasn`t just those guys, a whole host of conservative commentators
wrongly pinned the blame on the Democratic city government of Detroit.

(BEGIN VIDEO CLIPS)

UNIDENTIFIED MALE: This is a one party state to be totally clear, right?
There is no political diversity of any kind in Detroit.

UNIDENTIFIED MALE: Certainly in a city of Detroit. They haven`t had a
Republican mayor in 50 years.

UNIDENTIFIED MALE: Detroit is not really an example of the failure of GOP
economic policies. It`s been run by the Democrats for 60 years.

UNIDENTIFIED FEMALE: The level of corruption in Democrat rule, they throw
money at the problem. We`re going to do just whatever the unions say.
That`s what led to the downfall of Detroit.

UNIDENTIFIED FEMALE: Taxes, entitlements, pricey union benefits -- look at
where it got Detroit.

(END VIDEO CLIPS)

SCHULTZ: Now, let`s be very clear. I said last week on this program, and
I`ll say it again -- the Republican policies of free trade, outsourcing
jobs, unions, blaming workers and withholding state money from the city has
crushed the city of Detroit financially. And let`s not forget about
deregulation on Wall Street in dealing with all of those pensions that were
terribly hurt. All Democratic policies? I don`t think so.

Detroit lost roughly 300,000 jobs over the last 30 years. There is no way
that a city survives when it loses 90 percent of its manufacturing jobs.

The tax base erodes, along with public services, along with safety -- and
what happens? You get a depopulation of an area. You lose your tax base.
All these Republican commentators failed to mention this. I know a little
research is involved.

The city government of Detroit did not ship these jobs overseas.
Republican policies greased the skids for the corporations to do just that.
We have another fun fact for our misinformed conservative radio hosts and
Republican audience who love to go after me on Twitter. I love it.

Look at this guy. This is former Michigan Governor John Engler and he is a
big player in all of what is unfolded in Detroit. He is Republican. He
was a governor. He had power.

Do you know what he did? He made a lot of bad decisions and he had
underhanded negotiations which played a major role in Detroit`s bankruptcy
filing.

Let me take you back to 1998 when promises were made. Engler said he was
going to give Detroit $300 million annually of state funds for nine years
if Detroit promised to bring down its tax rates, which they did. This
happened until Detroit`s economy suffered a downturn in 2002. The city got
far less than what it was promised from the Republican governor. And it
still couldn`t raise the taxes because they were handcuffed in that regard.

But one calculation came forward and said that the city lost $700 million
in revenue because the deal was never lived up to. Basically, what they
did was they starved the city of Detroit, denying revenue sharing. Snyder
also withheld state funds from the city. And the media is let him off the
hook on that.

Bottom line here: Republican tax policy and tax breaks added to the
destruction of this American city financially.

Meanwhile, Republicans have also been attacking THE ED SHOW because we
labeled Detroit a conservative utopia.

Well, oddly enough, Republicans in Detroit are actually in the process of
creating a conservative utopia. Let me tell you about Belle Isle. Belle
Isle is a small island located within the city limits of Detroit. It`s
currently a city park covering roughly 982 acres of land on the Detroit
River between the United States and Canada.

Look at that. Look at this. This is Belle Isle. It`s surrounded by
water. Gosh, would not it be neat to get your hands on that and own it?

Recently, rich conservative investors have stated the intention of
purchasing Belle Isle. It used to be for the citizens of Detroit. But now
they want to come in and own it. They not only want to own it. They want
their own independent community with its own security, their own laws,
their own custom, their own transportation system, their own taxation,
their own currency. This is treasonous!

And they want what? A free commonwealth with no taxes. Do you think I`m
kidding? Look at this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This book is about a vision. Private investors buy the
island from the city of Detroit for $1 billion. A society which values
freedom and opportunity and the role of government is limited to providing
only the essential services used by all its citizens.

Belle Isle would cost less the American rate of 40 percent would have no
need for taxes on income, on investment or estates, making it a magnet for
capital.

(END VIDEO CLIP)

SCHULTZ: Yes. A magnet. They only want to pay for what they`re going to
use. They don`t want to take care of public education. In fact, you know,
if Belle Isle was in Iraq or Baghdad, in the city of Baghdad, they would
have a pretty good chance of funding that.

When the city ends up going through bankruptcy, which is going to happen,
public lands and buildings are going to be sold off into the private sector
to help pay for the city`s massive debt. Unfortunately, this is already
taking place on a private level in Detroit, big banks who own good home and
stable neighborhoods. Do you know what they`re doing? They`re tearing
them down. And long time residents in these neighborhoods are outraged.

This is what it comes down to, folks. This is the systematic corporate
destruction of an American city with the mission to destroy public
education. Destroy and break up unions and privatize everything they can
get their hands on.

And they`re doing it by attack workers and wanting to steal their pensions.
They`re circumventing local elections and putting people in place that can
say, your voice doesn`t count. Does it sound like America?

You know, Beckster, I know you`re all uptight about security. You`re all
uptight about whether the country is listening to people`s conversations.
Interesting, Beck, you`re worried about that but you don`t want people to
listen to election results in Detroit, do you?

You`re a hypocrite. By the way, Beck, tell me something. You moved your
operation down to Texas because you don`t have to pay as much tax, right?
What if that Governor Rick Perry down there had made a $700 million
commitment to your business, signed contracts, did the whole deal.

And oh, wait a minute. Got writer`s cramp at the end and the money didn`t
show up. Do you think you`d be a little bit pissed? Do you think you
would have been maybe shafted a little bit? How do you think these
Americans who have worked for 35 years and their pensions feel right now?

I think about George and Mary Schultz, at 1361 Westmoreland Avenue in
Norfolk, Virginia. A middle class family, I`m the last of five.

My parents gave everything to the family, everything to the kids, did
everything they could to make sure we would have a chance to be successful.
And I think about their retirement and what would have happen if they had
lost their pension.

And this is a possible scenario to be played out. But of course, there is
some people that just, you know, we can`t help.

This is not American. This is wrong headed. This is mean-spirited. This
is conservative policy. This is the Republican Party.

And no one in Detroit calling the shots is an honest broker.

Get your cell phones out. I want to know what you think. Tonight`s
question: Is Rick Snyder`s government takeover of Detroit a model for other
Republican governors? Text A for yes. Text B for no, to 67222. Go to our
blog, leave a comment, we`ll bring you the results later.

I just want to you consume this final thought on all of this. I believe
that this is a template, a model that is being played out. It just so
happens that it is playing out in Detroit.

Do you think John Kasich would do this to Cleveland? Do you think Scott
Walker would do it to Madison? Do you think any Republican governor is now
going to go into a staff meeting and say, we got some financial problems,
hell, let`s do what they did up in Detroit there? That way we can kill the
unions. Don`t worry about the middle class folks. They`ll just have to
figure it out. They can move in with the kids.

Now, there`s more on Detroit. I want to show you what`s happening in the
neighborhoods.

For more, lets turn to Detroit resident Lee Gaddies. He is in a
neighborhood where perfectly nice homes are being demolished in Lee`s
neighborhood.

Lee, good to have you with us. You called my radio show this week. You
said some very profound things. Tell us, where are you right now and
what`s going on?

Good to have you with us tonight, Lee.

LEE GADDIES, DETROIT HOMEOWNER: Thanks for having me, Ed. I`m in one of
Detroit`s middle class neighborhoods on the northwest side of Detroit.
It`s called the Bagley community. I`m on the board of the Bagley community
council.

And I wanted your viewers and listeners to understand what the state is
doing to my neighborhood. We have been fighting to try to stabilize this
neighborhood and keep residents in this area. This is one of the most
highly populated -- heavily populated laid areas, one of the most heavy-
voting districts in the city of Detroit. Upper middle class homes made out
of brick and plaster.

The state of Michigan`s office of urban and metropolitan issues came to us
and said that that they got grant money to tear down blighted and condemned
homes around Bagley elementary school. But what they ended up doing is
saying that they were going to meet with us to work on finding houses that
we deemed that were blighted, that had needed to be torn down. Then we
would work together in a partnership to get that done.

SCHULTZ: Did that happen?

GADDIES: No. In the process of doing that, they came down and actually
started tearing down houses that people were renovating and that could be
renovated and put back on the market and put back on to our tax rolls.

SCHULTZ: So, without consultation of the local folks, they came in and
started tagging homes for destruction. Is that correct?

GADDIES: Correct. They identified 49 house that`s they said need to be
torn down. And we told them, prior to them doing that, that there`s not 49
houses in the 5,500 house that we have in our community. They need to be
torn down. And would they give us that list so we could go back through
and make sure that they have the right houses, because a lot of those
houses, people were actually renovating.

And some of the houses had furniture and all kinds of stuff in them. And
people were actually living in those houses that they had torn down.

SCHULTZ: Lee, is this a government takeover? I mean, you got government
officials coming in, tagging homes, which signals to other residents --
well, maybe we should get out of here, too. I mean, there is a ripple
effect to all of this.

Your thoughts.

GADDIES: Ed, this is the state of Michigan coming into a neighborhood they
know nothing about with preconceived notions that all of Detroit is just
some vast wasteland with abandoned buildings they can just knock down
willy-nilly, not understanding that this is an upper middle class
neighborhood that people desired to live in. That people have moved in
because it is a stable community, because it`s near one of the best
elementary schools in the city.

SCHULTZ: Really?

GADDIES: And the fact we have some of the best housing stock in the
country. And they started knocking down home without consulting the
community using federal tax dollars to do it.

SCHULTZ: OK. Tell me about the houses that are right behind you there,
Lee.

GADDIES: This is a house that has been on the demolition list since 2006.
The city has condemned it, a blighted property. It has been condemned.
And it hasn`t been torn down.

Instead, they`ve torn down houses like the one next to it that are
perfectly good houses that people can move into that can be renovated and
used, that, actually, we are working as a community group to stabilize our
communicate and move people in to make our community warm and welcoming for
those people to move in, to make our community a place where people desire
to be at, and the state is working against us using our own tax dollars.

SCHULTZ: All right. Lee, what role are the big banks playing in all of
this?

GADDIES: Well, we had a meeting two weeks ago. The day before they
started tearing down these houses with the Michigan bankers association who
asked us to go through and find banks that were owned by Wells Fargo and
Bank of America, and let them know so they can do something about it.
Well, we`re not paid to do. She was paid to do that. That was her job.

SCHULTZ: Yes.

GADDIES: So she is asking us to volunteer to do Wells Fargo and Bank of
America`s job for them. And we`re not going to do that. We want people to
move into these houses. We don`t want these houses torn down. We want
them renovated and moved in.

SCHULTZ: All right.

GADDIES: And they said they would work with us in good faith and they
haven`t done that, Ed.

SCHULTZ: Lee Gaddies, we`re going to stay on this story. No question
about it.

I have a suggestion for Glenn Beck and FOX News. You know, you`d be great
on FOX News. You`d be great in all this -- they blame the unions, that
there`s no agenda whatsoever by the conservatives to take down
neighborhoods that are solidified and what the people want with absolutely
no input from the local folks this is happening.

Lee, we`ll get back to you. Go ahead.

GADDIES: This is the corporate footprint of governance on Detroit.

SCHULTZ: OK.

GADDIES: What you`re looking at is a community fighting against a
corporate takeover.

SCHULTZ: It is. Remember to answer tonight` question there at the bottom
of the screen. Shares your thoughts with us on Twitter @EdShow and on
Facebook. We want to know what you think.

Coming up, a dream deferred. Stay with us. We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: Time now for "The Trenders." Here at THE ED SHOW, we listen to
you.

Every week before the show, we check out Facebook, Twitter, and our blog.
So, now, you decide where we`re reporting. Here are this week`s top
trenders voted on by you.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Yes, baby.

SCHULTZ (voice-over): Our number three trender. The baby wait is over.

UNIDENTIFIED MALE: Hear ye! Hear ye!

PRINCE WILLIAM OF CAMBRIDGE: He`s a big boy, quite heavy.

JIMMY FALLON, COMEDIAN: The baby weighed about eight pounds. Then,
Americans are like, how much is that in dollars?

SCHULTZ: The baby currently known as prince becomes third in line to the
British throne.

BRIAN WILLIAMS, NBC NEWS: He is George Alexander Louis.

UNIDENTIFIED FEMALE: George, the name of six previous kings.

JAY LENO, COMEDIAN: Third in line to the throne. To which Prince Charles
said, yes, but it`s a slow-moving line. OK.

SCHULTZ: Our number two trender: King`s immigration disgrace.

REP. STEVE KING (R), IOWA: For everyone who is a valedictorian, there is
another 100 out there that they weigh 130 pounds and they`ve got calves the
size of cantaloupes because they`re hauling 75 pounds of marijuana across
the desert.

SCHULTZ: While Congressman Steve King doubles --

KING: I don`t disagree that there are dreamers that are valedictorians,
but also it would legalize those who are smuggling drugs into the United
States.

SCHULTZ: And triples on his claim in Mexico, they are recruiting kids to
be drug smugglers.

UNIDENTIFIED MALE: Our survey said --

SCHULTZ: Republicans smacked him down.

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: There is no place in this
debate for hateful or ignorant comments from elected officials.

SCHULTZ: In this week`s top trender: Weiner`s selfie destruction.

ANTHONY WEINER (D), NYC MAYORAL CANDIDATE: I have said that other texts
and photos were likely to come out.

UNIDENTIFIED FEMALE: Weiner`s online sex reportedly began a full year
after he resigned from Congress in disgrace.

SCHULTZ: Anthony Weiner, up to his old tricks under a new name.

FALLON: There were messages that he sent to a woman on Facebook using the
code name Carlos Danger.

UNIDENTIFIED MALE: Danger is my middle name.

UNIDENTIFIED MALE: Anthony Weiner`s alter ego is a Bolivian action
hero/bold star.

SCHULTZ: And there are growing calls for him to pull out of the race for
mayor in New York City.

UNIDENTIFIED MALE: It`s time for him to step aside.

CHRISTINE QUINN (D), NYC COUNCIL SPEAKER: Weiner has brought a side show
to this race.

UNIDENTIFIED FEMALE: Christine Quinn now leads him by nine percentage
points.

WEINER: It`s getting harder and harder every day.

COLBERT: This city has serious problems and I do not want Anthony Weiner
as my mayor. I want Carlos Danger.

(END VIDEOTAPE)

SCHULTZ: Joining me now is Lionel, legal analyst and local news anchor
here in New York City. Welcome to THE ED SHOW.

Have you ever seen a circus like this?

LIONEL, LEGAL ANALYST: Not only that. You know, there`s two aspects about
this case which I find interesting. First of all, aside from the puns, OK?
The first is, you know, Ed, with most sex scandals, we kind of understand
them, there is a woman, you have contact with a man, you meet the woman.
Maybe you`re in the same room or bedroom.

In this particular case, you have something called virtual adultery. As
far as I know, he has never met any of these people. Let me get this
straight. All of this thrown away and he never met anyone, so his virtual
adultery or I guess high-tech flashing.

So, the first problem is, I don`t get it. I don`t understand the mechanism
of his particular expression of emotion.

SCHULTZ: It`s the lies, isn`t it? Doesn`t it -- don`t the lies disqualify
him?

LIONEL: Well, yes and no. Look at Eliot Spitzer. He lied also.

SCHULTZ: He stepped down.

LIONEL: But we understand it. So, my first -- I was going to say my first
bone of contention which perhaps may not be the best choice of words. But
still, the thing that I`m saying is that, that`s the first part we don`t
understand.

The second part is his wife, Huma. What is this about? She stands there
and says, "You know, my husband is a better man for this." I go, no, no, I
beg to differ with you.

We can`t understand the whole thing. And then the lies that follow,
especially from her.

SCHULTZ: There`s plenty of comic material here but there`s a real element
of sadness as well.

LIONEL: Pathetic.

But here`s the thing -- I live in New York. Now, if he can promise me that
he won`t go after my 32 ounce sugar, that he won`t have those stupid city
bike lanes, he won`t worry about Trans fats and Styrofoam and sodium and
baby formula as El Bloomito, Mayor Bloomberg did, you know, I might
overlook that because who knows? Could he be in essence a mayoral savant?
Could he be great at administrative stuff but yet have this weird quirk? I
don`t know.

SCHULTZ: Well, he`s gone from 25 to 16 percent in the polls in the city.
But is there a chance he could come back? Do you think -- you`ve known New
York as good as anybody -- could this city actually elect this guy as
mayor? Could it happen?

LIONEL: Ed, this is America and this is New York. Ed, this is the land of
second and third and fourth chances. I think so, because believe it or
not, as long as he stops because remember he left congress. You would
think someone would say, look, for a while, I`m going to lay low. I`ll bet
you Eliot Spitzer after he had his problems did not make any phone call or
engage in behavior. This is a strange kind of, what? Paraphilia, some
type of a connection?

SCHULTZ: People are making the case that he is a political showboat. He
has no credentials. He really didn`t do much in Congress in his terms
there, six terms. But he was an orator for the left. This is his biggest
ally right now is that there are people saying, oh, gosh, we need his
voice. Is that going to be able to carry him?

LIONEL: Well, certainly, this would be his city because a lot of his
actual core technology resonates with a lot of people here.

But you have to ask, and I don`t want to bring this up. What do parents
tell kids? And this -- you know with the puns, this is really, it is kind
of sad. At first I found it amusing then you found it really amusing but
now we`re having diminishing returns. By the way, you know you`re doing
well in the polls when you`re opponents are asking for you to step down.

If he was not doing well, they`d say, stay in the race. But obviously,
there is something still there. But it`s really sad. And again, I submit,
Ed, I don`t even know what he did.

SCHULTZ: Well, what`s -- well, he lied. I mean, that`s a big thing.
Trust is an issue here.

LIONEL: Yes.

SCHULTZ: Then you look at his character. I mean, is this behavior that
you want a city official to have who is going to have his time possibly
occupied doing other things when there are some pretty serious problems in
the city.

LIONEL: First, as far as lies go. If we had -- people who lie, people who
say I`m going to do this and then they change their mind. Lying I`m sorry,
it`s a matter of degree and interpretation. The thing about this is, I`m
always worried about blackmail. That really compromises the efficacy of a
person.

SCHULTZ: If he were to get in. OK.

LIONEL: Yes.

SCHULTZ: All right. What`s in this guy`s future if he doesn`t win?

LIONEL: Mockery, humiliation. What`s in it for her? Because she --
remember, she was allied with Hillary. She is doomed. She is I mean,
whatever -- she has her own problems now with the investigations.

SCHULTZ: Lionel, good to have you with us. Thanks so much for joining us.

LIONEL: Coming up, Attorney General Eric Holder shows his cards on voting
rights down in Texas.

Later, Senators Mark Begich and Tom Harkin on why younger voters aren`t
buying the GOP lines on Social Security. But next, I`m taking your
questions. "Ask Ed Live" is just ahead. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. We love hearing from our viewers
tonight in our "Ask Ed Live" segment.

The first question comes from Kana, "If you could sit down with Speaker
Boehner, what would you ask him?" Well, I`ll actually like to play golf
with the guy because then I get four hours if we`d play 18, because when
you play golf with somebody, you find out if they cheat or not.

I`m curious if he -- if he really is an honest golfer, because with the
American people, he has not been an honest broker. He has been against the
will of the people time and time again. And I would ask him that. He
constantly says the American people, if the American people want that. The
American people -- when the polling shows on every issue, he is absolutely
wrong.

Our next question come from an avid ED SHOW viewer. Mr. Henry Winkler.
You may remember him as the Fonz. "What are we going to do about voter
suppression?"

Henry, thanks for watching the show. I appreciate.

Voter suppression, three things -- communication, education, and activism.
That is the only thing that is going to turn back the tide on voter
suppression. We have got to communicate the issues to the people. We`ve
got to educate the people on exactly how dangerous this is.

And we`ve got to go local activism. All politics is local. Nothing has
been more profound on an issue than this.

Stick around. Rapid response panel coming up.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

According to the latest NBC News/"Wall Street Journal" poll, 79 percent of
African-Americans feel they`re being judged by the color of their skin and
not the content of their character. With the number like that, we hear at
THE ED SHOW wanted to know more. So, we took very same question to Times
Square, diversity city is what we call it in New York City. We asked folks
to tell us if they agree or disagree with the following statement.

America is a nation where people are not judged by the color of their skin
but by the content of their character.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hmm. Disagree.

UNIDENTIFIED FEMALE: I want to say, sometime it is. Sometimes it isn`t.
It depends who you`re talking to.

UNIDENTIFIED FEMALE: I agree. I was brought up that way and I think the
majority of people do treat people that way.

UNIDENTIFIED MALE: They should be. That`s what the American dream is. It
should be. It`s not always that way. I don`t know if it`s always that
way.

UNIDENTIFIED MALE: I think it is about the color of the skin.

UNIDENTIFIED MALE: I tend to think more contextually on the personality.
But, unfortunately, that`s not the norm in some areas.

UNIDENTIFIED FEMALE: As much as we would like to say it is not about how
you look.

UNIDENTIFIED FEMALE: Because of the color, they judge you.

UNIDENTIFIED MALE: Yes, if it`s not because of the color of the skin, it
is how much money you have in your pocket.

UNIDENTIFIED FEMALE: Yes.

(END VIDEOTAPE)

SCHULTZ: And there are troubling things going on at legislative levels
that affect this problem. Voting rights are being stripped. Women`s
rights are under attack. There`s a lack of investment in municipalities
across the country because we`ve got to give tax breaks to the wealthiest
Americans. All of this hurting minorities, no question about it.

Joining me tonight on a rapid response panel, Dr. James Peterson, and also
state senator from Ohio, Nina Turner.

Great to have both of you with us.

NINA TURNER (D), OHIO STATE SENATOR: Thanks.

JAMES PETERSON, MSNBC CONTRIBUTOR: Thanks, Ed.

SCHULTZ: How does the Zimmerman verdict play into this subject and fuel it
all? Seventy-one percent of African-Americans polled said that the trial
decreased their confidence in the legal system. What needs to be done Dr.
Peterson to turn that around and get confidence back in the system?

PETERSON: That is going to be a long, arduous process, Ed, because the
systematic bias that`s built into the system. The racial bias that`s built
into the system operates almost at every level, from the level of stop and
frisk, the main interface between police and the communities that they`re
in charged with protecting, all the way through arrests, through plea
deals, through the prison industrial complex. There is bias almost
inherently in the system. It`s racial bias and it`s class bias and it
impacts poor folk and people of color more than anyone else.

So, in order to roll that back, we`ve got to start to address some of these
rules and laws at the state level, obviously at the municipality with the
city of New York. There`s a lot of work to be done in order to restore
faith in the criminal justice system.

SCHULTZ: Seventy-one percent is a high number. Senator, how do you turn
that around?

TURNER: It is, Ed. Well, we have to have a call to action and have the
conversation, but a call to action -- a consciousness-raising. You know,
James Baldwin wrote in his book, the fire next time. He chronicles the
lives of African-Americans in the 1960s. If you are to read that book
today, it`s eerily similar to what African-Americans are going through.
And even though he laid, he provably said, you must put yourself in the
skin of the black man.

But he also gave a layer of hope, he said if conscious whites and conscious
blacks get together and force and create a change and don`t falter, we will
have change in this country. That is exactly what we have to do.

SCHULTZ: What are the expectations of the African-American community on
the heels of this and these numbers, the way they are?

PETERSON: I think you have important places and important areas where the
black community is out there in the streets protesting, raising awareness,
organizing. I love what the Dream Defenders are doing in Florida.

I think that there are ways in which we have to continue to raise
consciousness about these issues, like I`m not sure if people understand
the recidivism rates and how many poor men and people of color end up going
back into the system. And why that`s problematic. We have to actually
continue to raise.

I mean, Michelle Alexander has this incredible book called the new Jim Crow
which gives you a sense of how the criminal justice system operates as a
new Jim Crow system. So, we need everybody to read that book. We need to
get educated about it and then continue to support groups like the Dream
Defenders to make this movement --

SCHULTZ: The young people are the key, aren`t they?

TURNER: They are. In every movement in this country, from the Freedom
Riders, to the young people that sat in did the sit-ins, it was all about
young people pushing change.

SCHULTZ: All right. Our second topic, in light of last month`s Supreme
Court decisions, striking down a key provision of the Voting Rights Act,
Attorney General Eric Holder is taking Texas to court.

(BEGIN VIDEO CLIP)

ERIC HOLDER, ATTORNEY GENERAL: Based on the evidence of intentional racial
discrimination that was presented just last year in the redistricting case
of Texas v. Holder, as well as the history of pervasive voting-related
discrimination against racial minorities, that the Supreme Court itself has
recognized, we believe that the state of Texas should be required to go
through a preclearance process whenever it changes its voting laws and
practices.

This is the department`s first action to protect voting rights, following
the Shelby County decision. But it will not be our last.

(END VIDEO CLIP)

SCHULTZ: Senator, what does that mean?

TURNER: I mean, that the attorney general means business. In section 2 of
the Voting Rights Act, it is a clear path to dealing with the Supreme
Court`s failings and hopefully this Congress, we will continue to push this
Congress to act. The Voting Rights Act, voting is a symbol of democracy.
It`s the greatest symbol that we have and I applaud the attorney general
for going in on this.

SCHULTZ: But the Supreme Court said that we don`t have a problem like we
had back in the `60s.

PETERSON: Unbelievable. And it is so funny that the Supreme Court
decision comes right before we get the Zimmerman verdict, right before the
whole Paula Deen, these different sores expose themselves, as far as the
underpinnings of racial bias and racism in this nation. So, obviously, we
still have a lot more work to do.

What is ironic, it seem because preclearance was working, right? They
wanted to justify that as a reason of (INAUDIBLE) movement. But in
reality, if it is working, that means you need work.

SCHULTZ: So total wrong decision by the Supreme Court.

TURNER: Absolutely.

SCHULTZ: Across the board.

TURNER: Across the board.

PETERSON: Justice Ginsburg was all over this as well.

TURNER: Yes, she was.

PETERSON: She really, clearly and very strongly, and forcefully in her
dissent explain why it`s wrong.

SCHULTZ: All right. Last topic, this week, Bill O`Reilly joined the
national conversation about race. Let`s take a look.

(BEGIN VIDEO CLIP)

BILL O`REILLY, FOX NEWS: Young black men commit homicides at a rate 10
times greater than whites and Hispanics combined. The reason there is so
much violence and chaos in the black precincts is the disintegration of the
African-American family. Right now, about 73 percent of all black babies
are born out of wedlock. White people don`t force black people to have
babies out of wedlock. That`s a personal decision. Raise without much
structure. Young black men often reject education and gravitate toward the
street culture, drugs, hustling, gangs.

Nobody forces them to do that. Again, it is a personal decision.

(END VIDEO CLIP)

SCHULTZ: And we all know that all communities have all the same resources.

Senator, your response to that.

TURNER: It is just disturbing. I know that Reverend Al took Bill to
Sylvia`s. He needs to more that Sylvia`s (ph). He needs to come into the
black communities and the Hispanic communities and really get a real
understanding of the life and what it means. I don`t know any black
mothers, any black fathers that want their children to be poor or not to be
highly educated.

This is disturbing. It should not be accepted.

SCHULTZ: Is it a resource issue when you don`t -- occupy kids, you don`t
give them opportunities? They find themselves doing things? I`m not even
sure if his number were correct.

PETERSON: His numbers are not correct because what he is doing, we do have
challenges. There are young black men and young brown men engaged in
homicidal activity more so than anyone else. But when you look at the
crime rates, the crime rates, number one, have been going down. When you
actually put those numbers in their proper context, you know, a lot of the
intra-racial homicides have percentage rates.

The hysteria that Bill O`Reilly is trying to promote is absolutely absurd.

SCHULTZ: And the theme of black on black crime.

TURNER: And intra-racism happens.

PETERSON: Right.

Black on black crime does not really exist. We have crime in rural
neighborhoods. And we have new studies that say it is dangerous living in
the rural areas as well.

At the end of the day, if we`re going to have a serious conversation about
this, Ed, what we should do, don`t dismiss the educational system, right?
We need the educational system that embraces young men instead of
criminalizing them. This kind of reporting criminalizes young black men.
So, until we address that, we`re not going to be walking them into their
education the way that they`re able to transcend those circumstances most
effectively.

TURNER: That`s right.

SCHULTZ: State Senator Nina Turner, James Peterson, great to have you with
us tonight. Thanks so much.

TURNER: Thanks, Ed.

SCHULTZ: Tonight in our survey, I asked you the viewer. Is the takeover
of Detroit the model for other Republican governors? Ninety-two percent of
you say yes, 8 percent of you say no.

Up next, Ted Nugent attacks Stevie Wonder and gets caught pretending to
care about urban violence.

Stay tuned.

(COMMERCIAL BREAK)

SCHULTZ: And in pretenders tonight, the wango tango, wacko Ted Nugent, the
Motor City motor mouth has nothing but love for the community. Nugent has
got so much love he thinks that Stevie wonder needs to catch up with him.

See, the Nuge is fired up over Stevie Wonder`s refusal to perform in stand
your ground law states following George Zimmerman`s acquittal. Nuge wants
to know, where`s the love?

(BEGIN AUDIO CLIP)

TED NUGENT, MUSICIAN: Seven hundred black people, mostly children, young
people, were slaughtered in Chicago last year by black people and not a
peep out of Stevie Wonder. How brain dead do you have to be? You`re going
to focus on that clear and universally concluded act of self-defense, but
ignore the black on black slaughter that`s happening every day in this
country.

(END AUDIOCLIP)

SCHULTZ: Nugent`s deflection, masked as concern for the black community,
for the black community has really a very thin veil, don`t you think?

Days later, Nugent describe the mindless tendency to violence. His belief
characterizes black communities across America. According to Nuge, this
isn`t racism. Racism doesn`t even exist.

(BEGIN AUDIO CLIP)

NUGENT: Racism against blacks was gone by the time I started touring the
nation in the late `60s. It was gone.

(END AUDIO CLIP)

SCHULTZ: If Ted Nugent wants to us believe and actually believes he cares
more about black people than Stevie Wonder, he can keep on pretending.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Isn`t that what makes us
special? It`s not the ability to generate incredible wealth for the few.
It`s our ability to give everybody a chance to pursue their own true
measure of happiness. We haven`t just wanted success for ourselves. We
want it for our neighbors too.

(APPLAUSE)

(END VIDEO CLIP)

SCHULTZ: Welcome back to THE ED SHOW.

This is a story for folks who take a shower after work.

President Obama is trying to energize the base on economic issues like
Social Security. This is not just an old person problem. Protecting
Social Security has been a key part of the Democratic policy for decades.
Two Democrats are working on legislation to protect Social Security. And
here`s the key: extend benefits for Americans who are living longer.

I sat down with Senators Tom Harkin and Mark Begich and asked why they
think young voters weren`t invested as their parents.

(BEGIN VIDEO CLIP)

SEN TOM HARKIN (D), IOWA: You know what I say to them, Ed? I say, ok, now
you`re going to school now. And you`re going to want to get married, and
you`re going to want to raise your kids. Guess what? Your parents are
going to move in with you.

(LAUGHTER)

HARKIN: That`s an awakening real quick. And then you just say, what can I
do?

(END VIDEO CLIP)

SCHULTZ: Republicans like Senator Minority Leader Mitch McConnell want to
brainwash voters that Social Security is broken and contributes to the
deficit. It doesn`t.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: Don`t tell me Democrats
represent the interest of young people. Washington Democrats stand around
like a lookout guy at a bank robbery, pretending nothing`s wrong. Even as
the Medicare and Social Security you`re all paying for goes broke.

(END VIDEO CLIP)

SCHULTZ: What a jaded opinion. Social Security has never contributed one
penny to the deficit. But, of course, Republicans like McConnell want to
cut Social Security. That`s their mission. Luckily, the voters in
McConnell`s home state of Kentucky are not buying it, 51 percent support
the Harken-Begich plan to increase Social Security. That`s increased
Social Security benefits to adjust for inflation.

(BEGIN VIDEO CLIP)

SEN. MARK BEGICH (D), ALASKA: That`s a retirement. People paid into it.
And they deserve to be paid back the money they put into it that ensures
they have some security and long-term longevity in the Social Security
program.

HARKIN: Every since we passed Social Security, Wall Street has been trying
to get its hands on this money. Make no mistake about it.

(END VIDEO CLIP)

SCHULTZ: Republicans want us to sacrifice our future for a grand bargain
to fix the budget, but Social Security is not for sale. When President
Obama suggested chained CPI, Democrats said it was unacceptable. Social
Security, Medicare, Medicaid are off limits. That`s if you`re a Democrat
and you believe in families.

Senator Harkin and Begich told me about their solution.

(BEGIN VIDEO CLIP)

BEGICH: This is an unfair system right now. The way it works now, and you
remember if you were a senior or disabled and didn`t get your COLA in `09
and `10, it`s because the COLA, the cost of living adjustment, is based on
what we buy. What seniors buy is much different. So we modify that in our
bill to make sure elder seniors are taken care of in the way that if there
is an adjustment on their cost of living for prescription drugs, other
things that they buy, their Social Security check goes up.

But ours adds up to 75 years in total length. That`s a pretty hefty change
from let`s just dismantle it and hope and pray it works.

(END VIDEO CLIP)

SCHULTZ: Republicans want to raise the retirement age as well.

(BEGIN VIDEO CLIP)

HARKIN: I always get a kick out of people who wear shirts and ties and sit
behind desk all their lives telling hardworking Americans, "Yes, you don`t
have to retire at 65. You can go to 70."

How about the woman who stands on her feet behind a counter for 40 years?
Try that sometime. How about the guy stringing lines out there in the
wintertime and stuff like that? And how about the construction person
that`s out there on the job?

There`s a lot -- people that work in packing houses all day long. Think
about doing that for 40 years, Ed. Now they want them to work even longer.

You know, look, not everyone has cushy jobs. Not everyone sits behind a
desk with air conditioning and stuff.

(END VIDEO CLIP)

SCHULTZ: Here`s the bottom line. Democrats are not going to budge on
Social Security. It protects working people, disabled Americans, and
protects the elderly who worked hard all their lives.

Social Security is a great investment. It has worked. It`s cheap, and
it`s solvent. And it`s a key part of the American dream.

(BEGIN VIDEO CLIP)

HARKIN: I challenge young people, go out on the market. See if you can
buy an insurance program that will cover you like Social Security and see
what you pay for it. You can`t.

First of all, you can`t find it. And if you can find it, it would cost you
hundreds of times more than Social Security.

BEGICH: This is one area where we can renew faith in government that,
look, this was promised generations ago, and we want to make sure it occurs
for the next generations to come.

And when you look at it, it`s not hard to fix. That`s what`s so amazing.

(END VIDEO CLIP)

SCHULTZ: Now, with the debt limit fight on the horizon, you can bet that
the Republicans are going to be looking for revenue, and they are going to
go right to Social Security.

The bottom line in all of this is, is that they`re going to lie to the
American people. They`re going to tell you that it`s part of the problem,
that it doesn`t work. That it can`t be fixed. There is no crisis right
now.

And now, if you couple this with the Republican ideology on retirement in
general, they have no problem going after people`s pensions to make city
budget work. They have no problem making sure that they privatize
absolutely everything.

If we had privatized Social Security right after Bush was re-elected, the
first trip he made was to Fargo, North Dakota, in January of 2005 to start
his privatization tour, which the American people rejected. What if we had
gone along with that? What happened to the market in 2009? What would
have happened to all of those Americans who were counting on Social
Security and living on a fixed income?

This is something the younger generation, the 20 and 30-somethings in
country have to pay attention to. There`s no reason to change it, except
the Republicans want to privatize it and get their hands on the money.

That`s THE ED SHOW. I`m Ed Schultz. See you tomorrow at 5:00 p.m. Eastern
Time. Have a good one.


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