updated 8/5/2013 10:53:43 AM ET 2013-08-05T14:53:43

THE ED SHOW
August 4, 2013
Guests: Mark Dayton, Bob Shrum, Bill de Blasio

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

Let`s get to work.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: By the power vested in us, by the state of Minnesota,
we pronounce that you are now legally married.

(MUSIC)

UNIDENTIFIED MALE: What a day for Minnesota.

UNIDENTIFIED MALE: I told him, that you were the real Minnesota miracle
man.

UNIDENTIFIED MALE: Not likely huge change will come to Wisconsin any time
soon.

UNIDENTIFIED FEMALE: Michigan`s definition as marriage between a man and a
woman is not effective.

UNIDENTIFIED FEMALE: Hopefully have a baby soon.

REP. KEITH ELLISON (D), MINNESOTA: Marry who you want, marry who you love.

BILL MAHER, TV HOST: How great will it be on the day when people can get
gay married in Oprah-homa.

REP. MICHELE BACHMANN (R), MINNESOTA: All we are trying to do is ignite
that love affair that all of us have with America`s founding.

UNIDENTIFIED MALE: The Founding Fathers of America, they sure had fabulous
wigs.

UNIDENTIFIED MALE: Reshape the United States into a progressive liberal
utopia.

UNIDENTIFIED MALE: For you and for me, everybody, equality, peace.

(MUSIC)

(END VIDEOTAPE)

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

Have you ever been in a conversation with a conservative who comes back in
any argument you may be having and says, you know what? There are
absolutes. Tonight`s ED SHOW is about absolutes. Absolutely change taking
place right here in the middle of the country surrounded by red states.

Tonight, I`m broadcasting from Minneapolis, Minnesota, in the middle of the
country where Democrats have taken control of the House, Senate and
governor`s office. You know, in the past year, in this state, we have seen
three things -- we have seen fiscal change, we have seen social change, and
we have something that we never see anything under Republican rule, and
that`s reinvestment in public education.

This state is proof positive when the Democrats get control, things change
for the better. Now I know there`s a lot of people upset about the way the
country is being run but everything that has happened in Minnesota pulls in
the majority, not only in this state but nationally, people around the
country are sick of Washington, D.C.

And they are sick of the same old garbage from their elected officials.

(BEGIN VIDEO CLIP)

REP. ERIC CANTOR (R-VA), MAJORITY LEADER: First of all, Chris, government
doesn`t create jobs. The private sector does. And what we have going on
today is a real erosion of the confidence on the behalf of the American
public in terms of their trust in government and frankly, the faith in
their economy.

(END VIDEO CLIP)

SCHULTZ: Oh, absolutely. We`re all losing trust in faith because we`ve
had 41 months of private sector job growth. Cantor and the Republicans,
you know what, they are all the same from the same talking points. They
spew it out every Sunday.

Radical governors around the country are trying to balance budgets on the
backs of the middle class of this country. What they are doing, they`re
attacking unions. They`re going after women`s rights and, of course,
they`re picking on the poor and the middle class. This is not happening in
the state of Minnesota.

Let`s cross the river to Wisconsin. There`s no better example than a
reversal of everything that`s taking place in this state of Minnesota.
Just this week, Governor Scott Walker said Republicans might expand
collective bargaining, restrictions to police and firefighters in his
state.

Now, this is a 180 from his previous position. This is just the latest
sneak attack from Governor Walker. He has a long history of going after
working men and women in that state. But it is important to keep in mind,
there`s hope. A lot of people are in the downtrodden when it comes to
political exhaustions.

I want you to look at this map. Minnesota is a blue state in a sea of red
states run by Republican governors. So tonight we`re going to highlight
how Minnesota is doing things better compared to the states around them --
much better than its neighbor to the east, Wisconsin, where Walker is
running around the country telling everybody how great things are in the
Badger State.

This week, hundreds of same-sex couples tied the knot here in the Twin
Cities since Minnesota legalized gay marriage on August 1st. That is
social change.

You know what it is? It`s the end of discrimination in this state.
Minnesota Congressman Keith Ellison was so proud of his state, he put
together this video.

(BEGIN VIDEO CLIP)

REP. KEITH ELLISON (D), MINNESOTA: This land is your land, this land is my
land.

Hey y`all, tomorrow, marry who you want, marry who you love. So I`m going
tomorrow because people got involved, people got active, made a compelling
case to the Minnesota people and Minnesota people said, do your thing.
Minnesota is for you and for me. Everybody, equality. Peace.

(END VIDEO CLIP)

SCHULTZ: It is not just social issues in this state. Minnesota`s
Democratically controlled legislature, the Democrats have controlled the
legislature, and, of course, they have the governor`s chair with Mark
Dayton. They are taking this state in a direction of where majority of
people in the state want to go, unlike Washington and nationally.

If you compare Minnesota to what Walker is doing in Wisconsin, it`s like
night and day. Here in the state of Minnesota, workers rights to
collectively bargained, they`re being protected. In fact, Minnesota has
even passed laws allowing child care workers to unionize.

In Wisconsin, we all know Scott Walker has relentlessly attacked workers
rights to organize. Minnesota has raised taxes on the top 2 percent to
balance their budget. The Democrats have delivered their first balanced
budget in over 10 years. They also passed a cigarette tax.

Over in Wisconsin, Republicans just rammed through a $650 million income
tax cut for the wealthiest residents in that state. Minnesota is using new
tax revenue to fund public education. Where do you hear that?

The state legislature has approved $485 billion increase for school
spending over the next two years. Minnesota has been a model for education
for years. Pawlenty came in, made a bunch of cuts, these communities are
being put right back in where the communities want them.

Meanwhile, Walker across the river is pushing voucher programs and has cut
$800 million from Wisconsin public education. Nobody voted for that. That
came out of nowhere.

Here in Minnesota, same-sex couples can get married. Scott Walker, of
course, supports a ban on same-sex marriage. In Minnesota, you don`t have
to worry about being arrested for peacefully protesting.

In the state of Wisconsin, they have passed a law requiring a permit to
protest with more than 20 people. What is the message there? Don`t even
gather in a crowd or you could get popped by the cops. I thought voices is
what we wanted to hear in our democracy.

Republicans have used it to arrest some of Wisconsin`s nicest senior
citizens. Now, isn`t this a hell of a picture for law enforcement?
There`s some really good PR going on right there, isn`t there?

And I`d like to point out that former Minnesota Governor Tim Pawlenty left
this state with $6.2 billion budget deficit. That`s what the Republicans
did in the majority in the state not too long ago. The party of fiscal
responsibility, they couldn`t get the job done here in Minnesota. When
Governor Mark Dayton took over, he raised taxes on income earners, the top
income earners in the state, and they finally balanced the state`s budget.
And also, they cut property taxes in the process.

And there`s one more thing that I think has to be profoundly pointed out,
Obamacare. It is going to be fully implemented in the state of Minnesota,
whereas in Wisconsin, it is being rejected.

So you might wonder, how in the world can life be so different when it is
just a stone`s throw across the river? Let me give you a hint, folks.
It`s the Republicans. It`s the majority. The states around Minnesota, the
Dakotas, Iowa, Nebraska, and Wisconsin, they`ve cornered in on Minnesota.
But Minnesota`s progressive, all of these states I just mentioned are being
run exactly the way the Republicans want to see their government run and
it`s failing.

Now, you can make the argument that North Dakota is through the roof. You
take oil out of North Dakota and you`ve got a cow patch economy, I
guarantee you.

But when you talk about not implementing Obamacare, not investing in
education, going after worker`s rights, stopping people from protesting
because there might be 21 people or 22 people because the number isn`t
correct, does that sound like America? Does that sound like where
communities want to go?

Since when do people go to the polls in this country saying we want it cut
everything because we want to be sure that we balance the budget. And, oh,
by the way, the big conversation about income inequality in this country
has been addressed in this state. I don`t think there are any wealthy
people in the state of Minnesota that are going to simply tip over because
they`ve got to pay a little bit more to get services right for the
communities across the state.

It`s called investment in community. It is still alive. And if you are a
liberal and if you are politically exhausted, I want you to pay attention
to this story and all of the states around Minnesota because those states
are being run like the Washingtonites. This state is being run by the
people, where the majority counts and elections matter, and people`s voices
aren`t circumvented.

The Democrats told residents if they got control of the legislature and the
governor`s chair, that they would move this state forward and that`s
exactly what they are doing. So, don`t give up on hope.

The president talks a lot about hope and change. Hope and change is alive
in this state, and good things are happening for people. And I`m remiss if
I didn`t mention the child care help that is go to be to kindergartners
coming in this state. It`s very important. What is that, though? Oh,
yes, that`s investing in the future.

Get your cell phones out. I want to know what you think about this.
Tonight`s question, do you wish your state was more like Minnesota? Text A
for yes, text B for no to 67622. You can always go to our blog at
Ed.MSNBC.com. We`ll bring you results later on in the show.

Could not have a better guest on this subject than the man we have here
tonight, Minnesota Governor Mark Dayton.

Governor, congratulations on a great job. You have done exactly what you
said you were going to do. I think it`s progressive and it is what the
people want.

But, Governor, answer this, is this what the residents of Minnesota want?
Are you following the majority?

GOV. MARK DAYTON (D), MINNESOTA: Well, we had an election last fall. We
went from Republican legislature, elected in 2010, to Democratic
legislature elected two years later because we offered a sensible path
forward with raising taxes as you said on the wealthiest Minnesotans,
closing tax loopholes for large corporations and putting money into
education whereas Republicans wanted to cut more and cut more and raise
property taxes.

And people in Minnesota said clearly, we want to go on a different path
from the previous two years.

SCHULTZ: What message does this send to the rest of the country, Governor?
Your thoughts on that.

DAYTON: I found Republicans who controlled the Minnesota legislature in
2011-12 were extreme ideologues for whom compromise was a bad word,
intransigence was a conservative virtue, who have a very rigid view of how
the country should be. They really don`t like government. They detest
government. They don`t want government to succeed, as you pointed out with
such thing as Obamacare.

People said, no, we want a balanced approach. We wanted to cut spending,
which we`ve done in the previous two years, but we also want to make our
taxes less regressive. We want the wealthy to pay their fair share and we
want to invest in the future of our state which is education.

Governor, you raised taxes on high income earners and also smokers. Why
was this a good idea?

DAYTON: Well, our tax system, state and local, is regressive in the
Minnesota. The very wealthiest Minnesotans pay about 75 percent of their
income in state and local taxes compared to the middle class. So we wanted
to even that up and shift reliance off of the property tax which also
doubled in Minnesota for the last decade. It looks like property taxes
will go down in Minnesota this next year for the first time in over a
decade.

The cigarette tax, you know, I was torn about that one. I opposed it in
the past because it is very regressive. But the purpose was really,
hopefully, to lose revenue, we wanted to prevent young people from taking
up smoking and hope that it will give incentive for people who are smoking
now to quit.

So it was for medical purpose rather than tax policy.

SCHULTZ: Governor, from what I can see is that everything the legislature
and you have done in the state is exactly where the country is. All of
these things are pulling in the majority: implement Obamacare, protect
workers, invest in education, close the gap on income inequality, get more
revenue from wealthiest, close corporate tax holes.

In the meantime, you have Scott Walker running aren`t country bragging
about how he is running Wisconsin. I want a very candid opinion from you.
Should Democratic governor talks more about this model in Minnesota and
give people hope that this is what can happen when a progressive
legislature gets together and follows the will of the people?

DAYTON: Well, Minnesota has gone to such an extreme and slashing funding
for public education? We cut higher education by 14 percent in 2011 facing
the deficit you described. So Minnesota really gone to the extreme right
and I think people want to have much more sensible course of action. A lot
of Democratic governors are already on that track. And 2010 was a bad year
for Democrats.

And I barely won and as you said, states around went for Republican
governors and stronger Republican legislators. We had an election in 2012.
And, after redistricting, people in Minnesota has a chance to take another
look at things and elected a Democratic legislature. Personally, in the
2010 redistricting following the census, they were able to lock in a lot of
Republican districts. And it is tough to get Washington out of gridlock
that it`s in now.

SCHULTZ: Minnesota Governor Mark Dayton, thanks for being candid with us
here on THE ED SHOW tonight. I appreciate your time. Thank you so much.

Remember to answer tonight`s question there 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. Facebook is @EdShow -- Twitter is @EdShow,
and also @WeGotEd.

President Obama hits the talk shows, while John Boehner hits the links.
We`ll fast forward to next week`s big stories. That`s next.

And as Congress heads out on yet another vacation, the Republicans have a
shut down looms. Our all-star panel weighs in on that.

So much more coming up on THE ED SHOW. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Progressives, let`s get back to work. America needs to pay
attention and stay vocal. So, let`s look at what`s ahead for this week
this fast forward.

(BEGIN VIDEOTAPE)

SCHULTZ (voice-over): The president is getting his one-liners ready.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I was not born in a manger.
I was actually born on Krypton and sent by my father Jor-El.

I`m just eye candy for you guys.

Hillary Clinton, four years later, she won`t stop drunk-texting me from
Cartagena.

SCHULTZ: On Tuesday, he`s hitting the "Tonight Show" stage.

JAY LENO, COMEDIAN: President Obama has said we`ve all been distracted by
phony scandals. It`s time to be distracted by the phony recovery. Yes,
that`s what I said. Yes.

SCHULTZ: On Friday, Emily`s List hammers at the glass ceiling once again.

HILLARY CLINTON, FORMER SECRETARY OF STATE: Thanks to you. It`s got about
18 million cracks in it.

SCHULTZ: The group is holding a forum in Iowa with one goal --

(MUSIC)

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: All the applicants seem to
be men.

UNIDENTIFIED FEMALE: Commander-in-chief of the army, a woman, I say it is
unspeakable.

ROMNEY: So, they brought us a whole binders full of women.

SCHULTZ: In Congress, hit the pause button it week.

UNIDENTIFIED MALE: Bueller, Bueller.

SCHULTZ: That`s right, folks. Lawmakers are taking a five-week summer
break.

They`ve already taken 32 days off this year.

JIMMY FALLON, COMEDIAN: Let`s look at pros and cons of Congress being
vacation. Pro, Congress gets to kick back, relax and do nothing. Con.
Then they get to go on vacation.

UNIDENTIFIED FEMALE: Sorry.

(MUSIC)

(END VIDEOTAPE)

SCHULTZ: Joining us now is "Daily Beast" columnist Bob Shrum, Georgetown
University professor Michael Eric Dyson, and host of the show here on
MSNBC, "DISRUPT", Karen Finney.

Great to have all of you with us tonight.

Karen, you first.

On Friday, the House voted to repeal Obamacare for the 40th time. What
does that mean and does it matter that point?

KAREN FINNEY, "DISRUPT" HOST: It doesn`t matter in the big picture. But
in the little picture, Republicans have convinced themselves that this is
an issue that they can go home and tell their constituents that they voted
against Obamacare, despite the fact it is already law and it`s already
being implemented.

You know, the other piece of this obviously is this is part of the set up
for the showdown I think we`re going to see in the fall where some folks
are actually ready to shut the government down over Obamacare.

SCHULTZ: You guys across the board see how this is unfolding in
Washington. You have people like Ted Cruz who want to shut down the
government. Does he even understand how things work, Bob Shrum? I mean,
this could be a real political disaster. Why are they going down this
road?

BOB SHRUM, THE DAILY BEAST: Well, I think with him and Rand Paul, it`s all
about 2016 primary politics. They understand the nature of the primary
electorate. They are both thinking about running for president. I think
Paul pretty much has decided to.

If you listen to John McCain, Tom Cole, some of the sensible people, and
John McCain has become increasingly sensible again in the Republican Party,
they think this would be a disaster. That`s because they were there in
1995 when they saw the train wreck, the political train wreck that happened
when Newt Gingrich shut down the government.

Look, if -- I think Boehner understands this. I think that McConnell
understands this. Boehner wants to stay speaker. McConnell has a primary.
So it could happen.

But I think they`ll find a way not to jump off the cliff. If they do, if
they crash the full faith and credit of the United States by stonewalling
the debt ceiling, create an international economic crisis, if they shut
down the government then I think Democrats will not only keep the Senate in
2014, I think despite the gerrymandering will win back the House.

Lindsay Graham says this is suicidal. That you Charles Krauthammer, the
conservative columnist, saying I agree with it, but it`s suicide, we can`t
do it.

SCHULTZ: Michael Eric Dyson, there is no doubt that this is going to be a
very active August. I remember August of 2009 when the Tea Party really
got rolling and that was really the beginning of obstruction. We`re
leaving in the age of obstruction.

What kind of August do liberal activists have to have to communicate to the
American people that things can happen on a national level if we win
elections, if we break this threshold and stop this obstruction. This is
what`s going to have to happen. It`s going to take boots on the ground,
that great deal of enthusiasm. What kind of August is going to be for
activists?

MICHAEL ERIC DYSON, GEORGETOWN UNIVERSITY: Well, I agree with Finney and
Shrum. They sound like a law firm there.

FINNEY: Hey now.

SCHULTZ: Well, you could be the third member.

(LAUGHTER)

DYSON: Hey, man. I`m looking for that legal license.

But the reality is, happy birthday to President Obama, number 52.

This is the kind of August you`ve got to look forward to. Not only trying
to get a vacation in but the reality is that the American populace is
taking a huge loss here because the refusal of Republican legislators to do
their jobs and their jobs is not simply obstruction. Their job is not
simply to roadblock progressive legislation.

Their job is also to bring the goods, so to speak, to their constituencies.
Telling their constituencies what they haven`t done, that is to say we have
blocked Obamacare, but that`s not telling us what you have done for us in
the positive.

It seems to me if they shut down this government, if they actually end in
the fall try to break us in the same fashion they did before, not only is
this down positively to Democrats in terms of the Senate as Mr. Shrum said,
I think more broadly, America begins to get the picture that these people
are in the business to undermine the business of America. And that`s not
good for our business either domestically or globally.

I think, finally, we begin to get a foothold onto logic for the
Republicans. And I think the broader American populace will begin to poll
in a much more significantly fashion and maybe then if Democrats maintain
the spine or get a spine in their backs, they have stand up and articulate
their vision without that the Republicans will somehow find a way to
undermine it.

SCHULTZ: All right. Michael Eric Dyson, Karen Finney and Bob Shrum, stay
with us. We`ve got a lot more, coming up. We want to hear from you again.

Still to come, President Obama takes his economic plan cross country as
Republicans spin their wheels on this month`s job numbers. And later, the
wage war continues. Candidate for mayor in New York City, Bill de Blasio,
on what a living wage really means for workers.

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 Terry McEachern. He wants to know, "Why are
so few commentators outraged about the conservative destruction of
Detroit?" Why are so few commentators?

Well, that would be everybody. For the life of me, I don`t know. I think
a philosophy of how people do their job.

This is just my philosophy. This is what I believe in. I don`t think that
you do a story and say, oh, well, we`ve covered that. So, let`s get on to
the next one.

I`ve always been one who believes that you do a story and you get into the
different facets of the story. And maybe others don`t view it that way. I
mean, where are the people? What`s the back story? What`s the
ramifications? Where`s the money? Where is the political push coming
from?

There are so many facets to the Detroit story, stealing an election,
circumventing local elections. I mean, there is so much there. I don`t
know how I could do that story justice the way it is affecting people`s
lives and the possible ramifications of the future or how conservative
states are run and when conservatives get power. How do you do that in one
show? I don`t know.

I can`t speak for anybody else. But I made a commitment to stay on the
Detroit story because I think it is a model for destruction.

Our next question is from Ryan G. "Ed, what will you do if you win the
$400 million Powerball this week?"

Well, first of all, I have to buy a ticket. And if a buy a ticket,
sometimes I do, sometimes I don`t -- if I do, and I happen it win it, my
wife and I talk about this quite a bit. We think money does funny things
to people. I`m going to give you a serious answer.

I`d probably give a good portion of it away. I`d probably create some
opportunities in the economy for some other people. And I would make sure
that I have enough time to go fishing. I`d kind of spread it out, if you
know what I mean. I wouldn`t hog it all.

Let`s a lot more coming up on the next segment and the rest of the show.
Stick around. You`re watching THE ED SHOW on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

Here on this program, we have tried to keep the focus on issues that hit
the kitchen table of the American middle class. Middle class families care
about jobs. They care about making ends meet.

So I have some good news tonight. According to the Labor Department, here
we go. The economy added 162,000 jobs to the month of July. That`s good.

The unemployment rate went down from 7.6 percent in June to 7.4 percent in
July. And I know I`m going to get a lot of communication from people
saying, hey, wait a minute, Ed, the real rate is this -- I get all that.
But these are the numbers that the Labor Department has put out.

And for 41 consecutive months, we have seen in this country, private sector
job growth. The chart tells the real story.

Of course there`s a lot more work to be done. But this is good news. And
there is no doubt that President Obama renewed his focus on the economy.
It`s almost like he is back in the campaign mode.

In July, the president toured the country to talk to Americans about his
economic agenda. He is vowed to spend the rest of his presidency focusing
on the economy, even the face of Republican obstruction.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I`ll keep laying out my
ideas to give the middle class a better shop in the 21st century and I`ll
keep reaching out to Republicans for theirs. But gutting critical
investments in our future and threatening a national default on bills that
Congress already racked up, that`s not an economic plan. Denying health
care to millions of Americans or shutting down government just because I`m
for keeping it open, that won`t help the middle class.

(END VIDEO CLIP)

SCHULTZ: And there is hope. Speaking at the Amazon Fulfillment Center in
Chattanooga, Tennessee earlier this week, the president laid out his terms
for a grand bargain.

(BEGIN VIDEO CLIP)

OBAMA: So, again, here is the bottom line. I`m willing to work with
Republicans on reforming our corporate tax code as long as we use the money
from transitioning to a simpler tax system for a significant investment in
creating middle class jobs. That`s the deal.

I`m just going to keep on throwing ideas out there to see if something
takes. I`m going to lay out my ideas to give the middle class a better
shot. But now it is time for the Republicans to lay out their ideas.

(END VIDEO CLIP)

SCHULTZ: Joining us again, Bob Shrum, Michael Eric Dyson and Karen Finney.

I tell you what, there are so many olive branches coming out of the windows
of the White House right now and that`s the only thing they`re growing.
I`ll tell you what, Michael, the president is basically saying, I`ll do
anything you want it do as long as we help the middle class. But getting a
grand bargain would be lowering the corporate tax rate.

How would that fly in the liberal committee and with the Democrats?

DYSON: Well, look, here is the reality: President Obama is a man of
controlled desperation, so to speak. He understands that he`s got a
limited window of opportunity here, but he also understands the optics of
this. His ability to sell the middle class on the belief he is defending
them is critical here. I don`t mean that in the kind of pejorative
subversive fashion. I`m saying that it`s all about selling in politics
these days and he`s got to convince people (INAUDIBLE) about them. I wish,
of course, that there was more about the poor people as well.

But in the meantime, to convince the middle class understand that Obama is
concerned about them, that the government stands behind them, that they are
concerned about their best interests is the kind of preparation for some
belt tightening that might occur as a result of the intransigence of the
Republican Party. Then when that link is drawn, I think there is some
clarify here that sacrifice that those people will continue to be made --
to make, is at the cost of a Republican legislator that refuses to
acknowledge that they have to contribution to the people`s overall
goodwill.

And in that level, I think that there`s some kind of sacrifice that might
be endured.

SCHULTZ: I mean, Karen, you look at these numbers. They are good. I
mean, 41 months is a long time. They are out there spinning numbers,
saying they are sluggish, they are misleading.

Will they ever be satisfied with any progress whatsoever?

FINNEY: No.

SCHULTZ: Just seems to say the goal is still the same to destroy this
president, destroy his legacy, do nothing on jobs -- do the American people
get it?

FINNEY: I think they are starting it get it, Ed. I mean, you and I both
know that this that set of talking points, that the same set of talking
points they pull out every month. It doesn`t matter what the numbers are
because they don`t care what facts are.

And think about this, Ed. It`s not just that they have been blocking the
ideas that the president has put forward. And again, he put forward some
very good ideas. He put forward ideas that Republicans used to support.
But this past week, with the transportation bill and the HUD legislation,
there was so much infighting between the Republicans, they couldn`t even
make it go. But that would have created jobs.

This week, the GOP became job killers themselves. That would have created
money for infrastructure and jobs. And instead, what did they say? They
couldn`t even get their own act together.

SCHULTZ: Bob, the political strategy, president`s out talk together
American people about the economy, saying he will keep throwing ideas out
there. Is that winging it or is he going to be respected for doing that?
Or is that just throwing his arms up saying I can`t get anything done with
this crowd. I just want you to know about it.

What should his strategy be right now? What can he do?

SHRUM: Oh, he`s got to try to make a deal. Although I`m skeptical that
he`ll make a deal in the end. I think there`s a decent chance he gets by
the debt ceiling, a decent chance we get the continuing solution. But it`s
going to be very hard for him to come to a grand bargain with the
Republicans.

They immediately rejected his offer on corporate taxes, which, by the way,
would lower the corporate tax rate but closes a lot of loopholes. Look, he
is dealing with the Republican Congress where I look at it and I say, GOP
now stands for groundhogs on parade, because everyday in the Republican
House, it`s like the movie "Groundhog Day". They do the same thing over
and over again. They do nothing and then they vote to repeal Obamacare.

I think they`re actually in a little bit of panic about Obamacare, because
it takes effect in 2014, as you pointed out. But 2016, for almost three
years, tens of millions of Americans will be getting healthcare because of
that legislation. By 2016, it`s going to be very, very poisonous, I think,
to call for repealing it. By 2020 you will probably have a Republican
candidate who said Obamacare is safe in my hand.

SCHULTZ: Karen, is it me or is immigration falling off the conversation
screen here for a while? What going on?

FINNEY: Well, you know, OFA, the president`s outside group, one of the
issues there, they say they`re going to try to push over this five-week
research is working on immigration reform. But if you listen to the
Republicans, it is clear what they are trying to do is give it a slow death
by chopping it up and lots of votes in the House.

And their latest proposal, which is so anti-family and anti-American, the
kids bill so to speak says kids you can stay here but we are sending your
parent home. So just leaving kids, like, alone here in the United States.
What kind of sense does that make? That`s what we are hearing from the
Republicans. Those are the big ideas, Ed.

SCHULTZ: Michael Eric Dyson, there is a conversation on the Democratic
side to increase the benefits of Social Security to increase the minimum
wage, to reinvest and go home actually, during all and talk about public
education. The Democrats pole stores have been instructed to do this, that
this is going up on the priority list with the American people.

How can the Democrats with those issues on their side, not come into the
majority, in the midterms? How could this not be a good year for the
Democrats?

DYSON: Well, it should be. But the reality is, so many Americans have
been hoodwinked and bamboozled to borrow another man`s phrase, by the
Republican who have convinced so many millions of people to vote against
their best interest.

You would think that given the litany of things that you just indicated,
that the Democrats could stand up and be proud of their record. That`s the
first index here. That the first indication, that Democrats have to be
unafraid to be Democrats. Stand up, tell the truth from their perspective,
narrate the story from your outlook and be unafraid to tell the American
people that this is not only what`s good for our party, it`s what is good
for the American populace.

So, unless we`re able to stand up and have some vigor or some confidence,
some self affirmation, we won`t be able to confirm or to affirm to a
populace that is teetering on the brink of destruction because they are
caught between two warring parties, that their best interests are at stake
here.

And then, finally, I think what we`ve got to do is to be able to clearly
tell that story. Not with a bunch of, you know, rhetorical (INAUDIBLE) and
Jetson thrown in the stream of consciousness, dad gum it, just tell the
truth we are at war for the future of America. We`ve got to borrow some of
the apocalyptic terms our right wingers without borrowing their paranoia as
well, to paint the grand picture against the campus of human history.

If we can do that in the next five to six weeks, I think we`ve got a better
chance of winning and we stand a better chance of catching up to the polls
which have indicated the American population is far ahead of us when it
comes to being able to understand what`s really at stake.

SCHULTZ: All right. Michael Eric Dyson, Bob Shrum, Karen Finney, great to
have you on THE ED SHOW tonight. Thank you very much.

Tonight in our survey, I ask you -- do you wish your state was more like
Minnesota? Ninety-seven percent of you`ve said yes, 3 percent of you said
no.

Up next in pretenders, the San Diego sexual harassment case gets more
twisted. Why Mayor McCreepy says he is the real victim here?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You stay classy, San Diego.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

SCHULTZ: And in pretenders tonight, San Diego Mayor Bob Filner. If this
guy gives you the creeps, there`s a pretty good reason. Ten women have now
come forward, saying the former congressman sexually them.

(BEGIN VIDEO CLIPS)

UNIDENTIFIED FEMALE: He would come in and try to kiss me on the lips and
I`d have to squirm to get away.

REPORTER: An attendee complimented her work ethic by saying she worked her
butt off.

UNIDENTIFIED FEMALE: He turned to me and said turn around. He proceeded
to take his hand and pat me on his posterior and laugh and say, no, it`s
still there.

UNIDENTIFIED FEMALE: He`d ask me to work without any underwear on.

UNIDENTIFIED FEMALE: Bob stepped between me and the door way. He stopped
me and got very close to me. And he ran his finger up my cheek. And he
whispered to me, do have you a man in your life?

UNIDENTIFIED FEMALE: He tried to move my face towards his to kiss me on
mouth. I turned away and then started negotiating with him. He would say,
not until you kiss me. He tried four times.

(END VIDEO CLIPS)

SCHULTZ: And, of course, the mayor of San Diego refuses to resign. And
get this -- he is trying to pass the blame on to the city. His excuse for
his handsy behavior, no one told him it was wrong. Filner says the city
cancelled sexual harassment training.

But, come on, even kindergartners know not to touch anyone in their no-no
zones. Tomorrow, this knuckle dragger starts two weeks of intense therapy
so he can learn to keep his hands to himself.

But remember, admitting you have a problem is the first step to recovery.
So if Bob Filner thinks skipping sexual harassment classes opens the door
to disgusting behavior, he can just keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Punch it in and punch it out. This is a story for the folks who
take a shower after work.

This is also a story for the folks who are struggling to make it on minimum
wage. Workers across the country staged protests to demand a living wage.
Almost 2 million Americans are trying to scrape by on $7.25 an hour.

Bill O`Reilly doesn`t want to raise the minimum wage, but he had some free
career advice.

(BEGIN VIDEO CLIP)

JULIET HUDDY: You can`t live off of making $7 an hour.

BILL O`REILLY, FOX NEWS: No, you can`t. But it`s not designed for that.
It`s designed to -- you enter the workplace, you understand the rules, you
show up on time, you do your job, you get a reference and you get a better
job.

HUDDY: So, you don`t think that they --

O`REILLY: Look, if I were the franchise operators, I`d pay them as much as
I could. But it`s not realistic to double their salary.

(END VIDEO CLIP)

SCHULTZ: Well, we went out on the streets to ask what real people think
about the minimum wage.

(BEGIN VIDEO CLIPS)

UNIDENTIFIED MALE: I can`t live off of $7.25 anywhere, to be quite honest,
$7.25 is a joke. I think that the minimum wage is not nearly a living wage
as what we need. And certain parts of the country including New York City
and Los Angeles, $18 will get you barely enough to survive.

UNIDENTIFIED MALE: I can`t imagine making minimum wage and trying to live
a happy, normal life. It seems like it would be impossible.

UNIDENTIFIED MALE: People actually make money, they can then spend money
again that they can afford to live.

UNIDENTIFIED FEMALE: There`s no way someone could live here on minimum
wage. I think the more and more costs go up, obviously the less people
that can afford to live here. You can`t even live in Brooklyn which is
outside of the city, too. So, I think the wage should definitely go up.

UNIDENTIFIED MALE: I brown bag it all the time because I can`t afford to
eat in the city. I don`t know how people making $7.25, how do they pay
rent? How do they get work?

UNIDENTIFIED MALE: I`ve never made minimum wage, but it`s still expensive.
It`s crazy, it`s crazy. I`m saving up just enough money to get like
McDonald`s.

(END VIDEO CLIPS)

SCHULTZ: I`m joined by someone tonight who wants to raise the minimum wage
in New York City if he is the city`s next mayor, democratic mayoral
candidate Bill de Blasio.

Bill, good to have you with us on THE ED SHOW tonight. Thanks so much.

I want to get your take on the minimum wage. It is, I think, a
conversation that`s entered into this race in New York City. Would you be
for -- do you think that raising the minimum wage would hurt businesses?

BILL DE BLASIO (D), NYC MAYORAL CANDIDATE: No, at this point, Ed, we need
to raise the minimum wage because people just can`t make it. It`s
astounding what`s happening in this city.

We had a recent study by the city of New York that 46 percent of the people
of New York City were within 150 percent of the poverty level, meaning at
or near the poverty level. This place has become insupportable for so
many, families and we`ve got to address this by raising wages and benefits.
That`s why the fast food workers are right and I think the city government,
and the governments all over the country need to get involved in helping
workers organize in raising minimum wage as a matter of law. We need to
use all these approaches.

SCHULTZ: I`m sure every mayor in the country has paid attention to what is
unfolding in the state of Michigan and certainly in the city of Detroit.

Do you foresee any troubles ahead for New York City if it doesn`t keep its
act together, get its act together and straighten out the priory list of
what the citizens want and, of course, minimum wage is all part of that?
Your thoughts on what`s unfolding in Detroit and how it might relate to a
big city such as New York City?

DE BLASIO: We`re in a very, very different situation. So, there`s no
immediate danger for New York City. There are cautionary tales with what
happened to Detroit that we have to deal with in the long run.

But the central problem in New York right now is inequality. The central
problem is that we`re living a tale of two cities and almost half of our
people literally in a situation where they can`t make ends meet.

But, right now, our city government under Michael Bloomberg hasn`t
responded. We have the greatest economic crisis since the Great
Depression, and yet none of the city policies that could have provided
relief, paid sick days, living wage legislation, raising the minimum wage,
none of that was done in time to help people during this crisis.

So, I think our central issue right now is the challenge faced by working
class, middle class, poor folks in this city just getting by. The long-
term problems -- yes, there`s things to learn from Detroit, but thank God,
we have time to deal with that.

SCHULTZ: You`ve got Harry Belafonte`s endorsement because of your stance
on stop and frisk. From what I`ve seen of this, you really have been the
first candidate that came out and was very defiant on stop and frisk, not
that the others weren`t, but it just seems that you have been much more
determined on this issue.

How would stop and frisk unfold under your administration?

DE BLASIO: We need to address this immediately. Harry Belafonte`s
endorsement meant so much to me because he`s a lion of the civil rights
movement. And what he said is exactly what I feel. This is a crisis
happening right now in New York City, young men of color being singled out,
being racially profiled almost every single day. Almost 90 percent of
those stopped, Ed, innocent in every way according to police statistics.

So what I`ve said -- and I`m the only candidate that says it -- we must
have a new police commissioner, someone who will be devoted to bringing
police and community back together in ending this profiling. We need a
legal ban on racial profiling. Michael Bloomberg vetoed that a few weeks
ago, by the way. It`s going to be up for an override vote shortly. And we
need a new inspector general for the NYPD because, unfortunately, without
independent oversight, this kind of thing will keep happening at NYPD.

SCHULTZ: Quickly, you are the latest poll puts you second place and shows
Anthony Weiner in fourth place. Does it matter if he drops out of the
race? It looks like it`s a three-person race right now, or your thoughts
on that?

DE BLASIO: We`re picking up a lot of support. People want a progressive
alternative and our numbers are rising. But I think he should step aside
so we can have a more serious debate about the future here.

SCHULTZ: All right. Bill de Blasio, good to have you with us here on THE
ED SHOW.

DE BLASIO: Thank you, Ed.

SCHULTZ: Thanks so much.

DE BLASIO: Thank you.

SCHULTZ: You bet.

And that is THE ED SHOW. I`m Ed Schultz. We`ll see you back here next
Saturday, 5:00 p.m. Eastern on THE ED SHOW, right here on MSNBC.


END


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