updated 8/4/2014 9:12:09 AM ET 2014-08-04T13:12:09

THE ED SHOW
August 1, 2014

Guest: Bob Shrum, Annette Taddeo, John Fugelsang, David Cay Johnston,
Peter Morici, Lionel

(BEGIN VIDEO CLIP)

BARACK OBAMA, CURRENT AND 44TH PRESIDENT OF THE UNITED STATES OF AMERICA:
Avoid me, I acted on my own.

JOHN BOEHNER, SPEAKER OF THE HOUSE OF REPRESENTATIVE: Hell no, you can`t.

OBAMA: Work with me to actually do something.

BOEHNER: Doing something that even (inaudible) doing nothing.

OBAMA: I`m right there. The door is always open.

BOEHNER: No, no.

OBAMA: I`ll go to them. I`ll, you know, wash their car, walk their dog.

BOEHNER: You`re talking Dems, like you (inaudible) the work (inaudible).

(END VIDEO CLIP)

ED SCHULTZ, MSNBC HOST: Good to have with us tonight folks. Thanks for
watching. Here is the latest on immigration. After failing to pass a
Border Bill on Thursday, House Republicans are expected to vote on an even
more radical bills, two of them tonight. Republicans had meetings all day
today and cave to Senator Ted Cruz of Texas. A new Border Bill would stop
President Obama from taking executive actions similar to his 2012 deferred
action on child arrivals that the program grants amnesty for children who
come to this country without adult supervision and meets certain
requirements.

Now the Bill would also stop the program from processing new children after
July 30th, 2014 just a couple of days ago. Now earlier today Congresswoman
Michele Bachmann said the Bill was radical enough for her to support.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN, (R) MINNESOTA: The dealing with the issue that the
American people care about more than any other and that is stopping the
invasion of illegal foreign nationals into our country and we got to yes.
We did it because the leadership sat down with the vote no of coalition
last night. They`re about 20 of us who are vote no. We put our concerns
on the table and this needs to be said that this bill is so different from
the bill yesterday until today that we effectively gutted yesterday`s Bill.
This is a brand new Bill.

(END VIDEO CLIP)

SCHULTZ: So the radicals are winning out. Make no mistake about that,
although this is a symbolic vote. Earlier today President Obama made clear
that he veto the Draconian Bill.

(BEGIN VIDEO CLIP)

OBAMA: House Republicans as we speak are trying to pass the most extreme
and unworkable versions of a bill that they already know is going nowhere.
They can`t pass the Senate and that if it were to pass the Senate I would
veto it. They know it. They`re not even trying to actually solve the
problem. This is a message bill that they couldn`t quite pull off
yesterday, so they made it a little more extreme so maybe they can pass it
today. Just so they can check a box before they leave town for a month.

(END VIDEO CLIP)

SCHULTZ: President Obama went on to call out Republicans for asking him to
take executive action the day after suing him.

(BEGIN VIDEO CLIP)

OBAMA: House Republicans suggested that since they don`t expect to
actually pass a bill that I can sign, that I actually should go ahead and
act on my own to solve the problem. Keep in mind that just a few days
earlier, they voted to sue me for acting on my own and then when they
couldn`t pass a bill yesterday they put out a statement suggesting I should
act on my own because they could pass a bill.

(END VIDEO CLIP)

SCHULTZ: And you wonder why Americans across this country flat out hate
what`s unfolding in Washington, D.C. Republicans have proven, they are
successful at one thing and only one thing alone and that`s doing
absolutely nothing. The latest polls shows at Gallup poll shows 80 percent
of Americans disapprove of the way Congress is handling their job. This
should be of no surprise as 133th Congress is on track to be the least
productive in American history. That`s what you`re paying for folks.

For antigovernment Republicans, this is what they want. Republicans want
you and me to lose faith in our government. They want Washington, D.C. so
dysfunctional, Americans, they want nothing to do with it. They won`t pay
attention to what`s going on.

On Thursday, Democratic leader Nancy Pelosi said current Republican
behavior in the House is unprecedented. Congresswoman Pelosi thinks that
Republicans wants Americans to lose faith so they won`t vote.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI, (D-CA) MINORITY LEADER: This is something almost new in
terms of abandoning the debate. We`ve always had in our country a healthy
debate. If you are anti-governance, want you want to people to do is not
participate in the electoral process. That confusion, the negativity that
can emanate from here in a congressional election year is one that is not
conducive to people exercising their voting rights.

(END VIDEO CLIP)

SCHULTZ: The latter is exactly right for Democrats. Republicans want you
to hate Washington, D.C. so you sit it out. You don`t show up on November
and you don`t vote. Meanwhile Republicans say one think and do another.
The day after suing President Obama, John Boehner came out and said this.

(BEGIN VIDEO CLIP)

BOEHNER: Over the month of August, we`ll continue to make the American
people priorities our priority and that means talking about our plan for
jobs and the economy. And in September the House will focus on American
solutions to help get people back to work, lower cost at home, and restore
opportunity for all Americans.

(END VIDEO CLIP)

SCHULTZ: He never explains exactly what kind of bills they have passed in
the House and have sent over to the Senate. Let me tell you what they are.
They`ve got tax cuts for the wealthiest Americans. They got tax cuts for
corporations. Everything the American people don`t want is what Boehner
has sent over to the Senate. Earlier today President Obama called out
House Republicans on doing the opposite. He said Republicans are standing
in the way of America`s success.

(BEGIN VIDEO CLIP)

OBAMA: I`ve been pushing for common sense ideas like rebuilding our
infrastructure in ways that are sustained over many years and support of
millions of good jobs and help businesses compete. I`ve been advocating on
behalf of raising the minimum wage, making it easier for working folks to
payoff their student loans, fair pay, paid leave. All these policies have
two things in common. All of them would help working families feel more
stable and secure and all of them so far have been blocked or ignored by
Republicans in Congress.

(END VIDEO CLIP)

SCHULTZ: So let`s just take a look at how Republicans plan to restore
opportunity for all Americans. The reality check is this, their game plan
is to destroy opportunity, I think for all Americans. They don`t care.
Here is the short list. President passes the Affordable Care Act. The law
provided healthcare for million of Americans. Forgot the polls, lives are
being saved. House Republicans, what have they done? Voted 56 times to
repeal it.

Everyday we see the effects of climate change and we document it on this
program, damaging nearly every corner of the earth. Science in denial.
Science denying Republicans refuse to even acknowledge climate change is
real. There`s not a scientist on the face of the earth that could convince
them something is happening. Republicans are owned by the oil lobby. That
might have something to do with it.

They push for more drilling and more pipelines at every opportunity. That
will only make the problem worse. Sixty-five percent by the way of
Americans roads are in less than good condition. Do you think we`d do
something about that? Americans, we only spend 55 billion hours in traffic
every year. But wait a minute, there`s one party out there that refuses to
even put a long-term infrastructure bill up for a vote. They now that it
would pass. The latest example is Republicans doing nothing on
immigration. Every single thing Republicans do at this point and juncture
is to make you lose faith in your government, to think that nothing can get
in Washington.

No minimum wage vote, no extension of unemployment insurance which we could
have paid for. You name it. Republicans ought to kill it. They`re going
to kill everything they can. This is the Republican view of progress.
This is their template, their game plan to make sure you don`t show up in
November and you don`t make the change. Think about this, over 90 percent
of American in this country wanted simple background checks. After Sandy
Hook, we couldn`t get it because the lobby is so strong in Washington.
That has signature everything else the rest of the way. If you can`t get
that, what are you going to get? Not much except more radical talk.

Michele Bachmann says, the number problem in this country is the
immigration. No, its not. The number one problem in this country is jobs
and the Republicans have done nothing to help this President or the
Democrats do anything to make sure that our treasury is solvent and that
there`s fair taxation and jobs are being created. So instead they would
rather have bridges crumble. They would rather have school buses and kids
go over bridges that are insufficient. That`s the gamble they want to play
and they want you to think that it`s all about bad government that`s not
getting it done.

They want you to believe that its government, its America, we can`t get it
done and it`s all because this Black guy is in the Whitehouse. He`s been
the problem all along. This is how their playing the game to the midterms.
Millions of Americans have been affected by this recovery. The numbers is
out today, we`ll talk more about it later in the show. Millions of
Americans have been affected by saving the automobile industry. Millions
of Americans have been affected by healthcare change in this country.

You will not go broke under Obamacare if you get sick. That is a radical
change. The insurance companies don`t own you totally anymore. Theirs is
now some competition. There are options for you. This huge change but
you`ve never know it. Listen to Republicans or listening to the
conservative media in this country which is fueled by hate and anger and
you want to know why Americans are pissed off at Washington D.C. Don`t
tell me we can`t rally around things. Everybody was rooting for the soccer
team. We know how to root for things that function, that at least have
light at the end of the tunnel of functioning. But when you have an age of
obstruction lead by Mr. Cantor who doesn`t have the guts to stick it out
all the way after his constituents put him in office in Washington, that
tells you everything you need to know about character of the Republicans.

It`s almost as if they`ll cheat to win. How do I -- how can I say that?
Well look at the gerrymandering.

Get your cell phones out. I want to know what you think. Tonight`s
question, "Do Republicans want Americans to lose faith in the political
process? 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 the results later on in the show.

For more let me bring Democratic strategist and Professor, Bob Shrum
tonight with us. Bob, good to have with you with us, always. It appears
their strategy is to make people hate government and have them not show up
for the ball game, so to speak. What`s unfolding here and has it ever been
done before?

BOB SHRUM, WARSCHAW POLITICS PROFESSOR, USC: Well it`s never been done
quite this level. I mean these folks hate the government. They can`t run
the government so they want to run it down. They want to destroy
confidence. So I think your right. Nancy Pelosi is right. Their whole
script for the midterm is to try to discourage voters, get people to
disengage, get people to not turn out.

And they`re being driven by the most extreme elements of their party, on
immigration for example by King and Bachmann and Ted Cruz. And it`s
political suicide for them in the long-term. Like in 2016, they can`t win
the presidency doing this. But they think in 2014 their bet is that young
people, Hispanics, single women wont turn out and vote for themselves and
their interest and that somehow they can prevail.

But when you listen to the list of issues the President mentioned whether
it`s minimum wage, whether it`s infrastructure, whether it`s tax reform, I
actually think it`s unfair to call this a do nothing Congress. It`s a
zombie congress ...

SCHULTZ: Yeah.

SHRUM: ... driven by ideology, convinced somehow or other that it can
discourage enough people from voting and rely on gerrymandering and
cheating. And by the way Ed, they do cheat all the way from the 2000
election on, the Republican Party has cheated in this process. And they
are hoping that somehow or another they can hold on in 2014, take the
Senate which will make things even worse.

SCHULTZ: You know, I hark it back to our friend Robert Greenwald who
produced Outfoxed which was put out just over 10 years ago, that and
anniversary not long ago. And the play book has always been "say one
thing, do another" but keep ...

SHRUM: Right.

SCHULTZ: ... repeating things over and over again and people are going to
believe what you`re saying. So Boehner have said all along that his
priority is jobs and restoring opportunity but he`s done nothing to
parallel that action whatsoever. So if it is to stall the government, to
get people to hate government, to make sure nothing gets done on Obama`s
watch, hasn`t Boehner in a jaded way been a very successful speaker for
what they`ve really wanted to accomplish?

SHRUM: Well yes and no. I mean he`s very successful in the sense that he
does feed this antigovernment move, although people are figuring this out
by the way. You mentioned one poll at the top of this, at the top of this
segment. The fact is the YouGov Poll shows this Republican Congress with a
7 percent approval rating. That`s historically low. I think he`s
unsuccessful in a longer term sense.

The Republican Party cannot survive as the anti-woman, anti-Hispanic, anti-
young people, anti-jobs party. Its just wont work and you know what their
idea of a jobs bill is? I think you said it earlier. It`s another big tax
cut for very wealthy people. They call it jobs.

SCHULTZ: Sure.

SHRUM: They hope people will think its jobs. That`s not what it is. And
in country increasingly concerned with income and equality, I`d say
Boehner`s short-term success is going to be a long-term failure.

SCHULTZ: So unpack what happened in the last 24 hours with Ted Cruz going
over and yanking some arms over on the House side. Now there`s going to be
two bills that are going to be voted on. How do you see this? The Tea
Party not enough to take over the congress but certainly enough to make
things miserable.

SHRUM: Well I guess in way, they have taken over the congress. Ted Cruz
is more powerful than John Boehner. He`s more powerful than Mitch
McConnell. He gave us a government shutdown. And in the last 24 hours he
organized enough Republicans that they wouldn`t vote for even a bad border
bill. Instead they came up with a Bigot`s Bill that would destroy the
future of the dreamers. It alienates Hispanic voters. It`s a long term
disaster for the Republican Party but he doesn`t care. They don`t care.

The Republicans Party is ...

SCHULTZ: Yeah.

SHRUM: ... dominated in its primaries and in its core now by a very angry
remnant of Americans who are furious about the change in composition of the
country and the fact that were becoming a majority of minorities and that
we have, as you suggested earlier an African-American president of the
United States. That`s what I think happened.

SCHULTZ: Bob Shrum, great to have you with us tonight. I appreciate your
time always. Let me bring Miami-Dade Democratic Party Chair and candidate
for Lieutenant Governor in Florida, Annette Taddeo.

Annette, great to have you with us tonight. What damage do you think this
has done? What message has this send out over the last 24 hours about
immigration, the hassling that`s been going back on the conservative side?

ANNETTE TADDEO, (D-FL) LT. GOV. CANDIDATE: I think they`re making a huge
mistake. They think that they are firing up their base. And I think what
they don`t realize is they`re going to fire up us, because they tried this
in 2012 with Barrack Obama and said, "We weren`t going to come out." And
we actually came out in many more numbers. We, in Florida for example,
actually delivered more votes in 2012 than we did in 2008 when we were so
excited about the historic election and electing our first African-American
president. And look 2012, we took more votes.

So, we`re going to do that again this time. I believe that in Florida
especially we are going to come out in vote. We are affected by
immigration. We have a lot of Hispanic here that really care about this.
And this is a do nothing congress. And which is why here in Florida we
have decided that Charlie Crist and I, when we get elected, on inauguration
day, we`re going to use the pen to enact some first day of fairness,
something much needed in Florida.

SCHULTZ: Annette, does this passion, is it going to play out in an off
year election? Is, you know, this is, you know, I mean historically this
is not great for Democrats but it could be because the issues are so
different. Connect those two.

TADDEO: Well, I`ll give you a perfect example. We put out -- I just told
you about the first day of fairness information that we put and one of them
is equal pay for equal work, for women. And what do the Republicans do?
Rick Scott comes out with five men, not one but two but five men to say,
"You know what? This is outrageous." What`s outrageous is that you think
that women should make 83 cents on the dollar of for every man for the same
job.

I mean 10.10 an hour, that`s what we want to pay for minimum wages. It`s
livable wage. And this is all the exact same stuff that`s going on at the
federal level, is going at the state level in Florida. We need a change
and I believe that our voters are going to come out because we know what we
paid for in 2010 when stayed home.

We got terrible government at all levels and we cannot do that this time.

SCHULTZ: All right, Annette Taddeo, great to have you with us tonight.
We`ll certainly do it again. I appreciate your time.

Remember to answer tonight`s question there at the bottom of the screen.
Share you thoughts with us on Twitter @edshow and @wegoted. Check out all
over videos. Like us on Facebook. We appreciate that you`re being part of
the team.

Coming up, July`s job numbers are in. This might give conservatives one
last thing to complain about. But first Erick Cantor pulls what? Oh yes,
of Palin.

Trenders is next. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Time now for Trenders. What`s hot and what`s not. Well, first
of all, we want you to join the Ed Team. Follow us on Twitter @edshow and
@wegoted. Like us on Facebook. You can get my radio podcast at
wegoted.com, rawstory.com, ringoffireradio.com and on iTunes as we continue
to grow.

Ed Show Social Media Nation has decided, we`re reporting. Here today`s top
Trenders voted on by you.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The number three Trender, personal foul.

UNIDENTIFIED MALE: Ray Rice has now spoken publicly.

RAY RICE: I made the biggest mistake in my life.

UNIDENTIFIED MALE: For the first time since being suspended for two games
for an altercation with his now wife.

RICE: My action is inexcusable, you know, it`s something I have to live
with the rest of my life.

UNIDENTIFIED FEMALE: Ray Rice, zones up to his off the field actions.

RICE: The one thing that I want to do today was, you know, apologize to my
wife.

UNIDENTIFIED MALE: Ray Rice got it right the second time.

RICE: I still got kids out there that wear a 27 jersey (inaudible). I
just want to tell them that, you know, please don`t the mistake that I did.

UNIDENTIFIED MALE: Ray Rice is really understands the gravity of the
situation.

RICE: Violence of any kind especially man on woman is not right, it
shouldn`t be tolerated.

UNIDENTIFIED FEMALE: The number two Trender, Shark Week.

UNIDENTIFIED MALE: Sharknado has round its way to a new coast.

UNIDENTIFIED FEMALE: Sharks, tornados, New York.

UNIDENTIFIED MALE: Let`s go and kill some sharks.

UNIDENTIFIED FEMALE: Sharknado 2 sets records for Syfy.

UNIDENTIFIED MALE: We don`t know what it says about the future of our
republic that four million people watched it.

UNIDENTIFIED MALE: There was such a ground swell of anticipation for
Sharknado.

UNIDENTIFIED MALE: It almost broke the internet. There was so much
activity.

UNIDENTIFIED MALE: It was a star studded or at least person studded cast.

UNIDENTIFIED MALE: We`re going to need a bigger post.

UNIDENTIFIED FEMALE: Will there be a Sharknado 3. Syfy says, "Oh, it`s
happening.

UNIDENTIFIED MALE: Holy shark.

UNIDENTIFIED FEMALE: And today`s top Trender, Homework Bound.

UNIDENTIFIED MALE: The New York Times called it one of the most stunning
primary election upsets in congressional history.

UNIDENTIFIED MALE: You lost.

ERIC CANTOR: Not one of us should ever take for granted the awesome honor
and responsibility we have to serve our fellow Americans.

UNIDENTIFIED FEMALE: Eric Cantor cut short his congressional career.

UNIDENTIFIED MALE: The Republican congressman told the Richmond times
dispatch, he will resign from congress August the 18th.

UNIDENTIFIED MALE: First (ph), I`m out of here.

UNIDENTIFIED FEMALE: He`d asked governor Terry McAuliffe to hold official
election that coincides with the November 4 general election.

UNIDENTIFIED MALE: She says he want to make sure that voters have a voice
during the lame-duck session of congress.

CANTOR: It`s been an honor and a privilege to serve as majority leader of
this distinguished body.

(END VIDEO CLIP)

SCHULTZ: Joining me tonight, John Fugelsang, Political Commentator and TV
host. First of all, whatever happened to just serving out your time, he
pulling the Palin.

JOHN FUGELSANG, POLITICAL COMMENTATOR: Yes.

SCHULTZ: He says that he now wants a special election so that the
constituents in that district will have representation in the lame-duck.
What`s wrong with him just doing his job? Your thoughts John.

FUGELSANG: Well, you know, I mean as he can make a $174,000 sitting in
congress and doing nothing or make untold millions being a lobbyist and
paying congressman, bribes to sit around and do nothing. I think we all
know what this is about. He has to wait one year to become a lobbyist and
this gives him a bit of a head start. And since he hates government waste
so much he has asked Governor Terry McAuliffe to allow the good people of
Virginia to pay for a special election.

SCHULTZ: You know Terry is not going to do that. I mean ...

FUGELSANG: No, Palin call him a quitter.

SCHULTZ: But here -- Yes, yes. That`s right. But this is the guy that
met secretly with his colleagues and thought of obstruction. This is the
guy who said no, it has been about him all alone.

FUGELSANG: Oh, all alone.

SCHULTZ: And John, I mean he is number one.

FUGELSANG: Yes.

SCHULTZ: This is -- this underscores, it`s always been about Sarah Palin
and her world and it`s always been about Eric Cantor and his world,
resigning from the House in the middle of vacation. How telling, isn`t it.

FUGELSANG: This why he does never job anymore Ed. It`s because the voters
in his district know this is the truth. This guy wanted John Boehner`s
job. Eric Cantor wanted to be speaker of the House for years. He was like
Iago (ph) to John Boehner as a fellow, if a fellow is orange instead of
black. And Boehner had to do deal with this for a time. If my best
friend, you know, wanted my job, I`d spray to him my hangovers as well.
And the voters have seen through this. They know it`s the clearest sign
yet.

He is leaving for a number of reasons. Number one, it`s a lame-duck
session. He is not going to do anything. Anything he does is going to get
attack from all three sides. So why stick around? It does give him a head
start on the lobbyist quest. And even more so, I think that the most
important thing about it is it proves that he was always just about Eric
Cantor from the very beginning. They asked him what he is going to do once
he`s left and he say, "I`m not going to do anything for a while." And I`m
like, "If you`re not going to do anything why are you leaving congress?"
What`s the change?

SCHULTZ: Because it`s all about him. It`s always been all about him. All
right, before we go, you know, this shark mania that is taken place out
there, Sharknado.

FUGELSANG: Yes.

SCHULTZ: Look, we`ve had shark excitement in the past. Remember the 70s
and Jaws.

FUGELSANG: Yeah.

SCHULTZ: This is just a modern day of Jaws, isn`t it?

FUGELSANG: No, Jaws is a great classic film built on a Western premise.
It`s a great movie. Sharknado is just, you know, ironically is the new bad
and it`s just cheap fun and it`s stupid and it`s junk food and it`s goofy
and, you know, I`m sure bong sales went to the roof after Sharknado aired.
But I do want to add one more thing if I might on Eric Cantor, I do want to
pay a little treaty (ph) .

SCHULTZ: Sure.

FUGELSANG: . to him Ed, because by leaving his job early he`s finally done
what no one else in the GOP congress has manage to do. He has created one
new job, so I salute you Eric Cantor.

SCHULTZ: John Fugelsang, good to have you with us tonight. Thank you so
much.

FUGELSANG: Always a pleasure.

SCHULTZ: Coming up, Tea Party mouthpiece Ben Carson and his twisted
message on equality and Christianity. The good duck lands in tonight`s
Prentenders. Plus the brightest minds on the economy battled it out over
the state of the country. Rapid Response Panel coming up. Next, taking
your questions Ask Ed Live, right here on the Ed Show. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. We love hearing from our viewers.
Sometimes it takes me along time to answer questions. Now, a week ago, in
the segment, I was asked what really fires me up. I said, well its catch a
10 pound walleye. Well, take a look at what happened last weekend.

(BEGIN VIDEO CLIP)

SCHULTZ: That is a huge walleye. Wow, wow, that`s what we`re here for.
Yes, sir, great, well job done. There you go. Wow. That is a big fish.
That`s a nice walleye. This is a kind of fishing we have at North Country
Lodge. Look at that baby.

(END VIDEO CLIP)

SCHULTZ: That`s what fires me up. I think we`ll go for the repeat this
weekend. Stick around, Rapid Response follows next.

JOSH LIPTON, CNBC CORRESPONDENT: I`m Josh Lipton with your CNBC market
wrap. Stocks end lower this employed fright (ph). The is Dow is off 70.
The S&P sheds 5. The Nasdaq falls 17.

The big story of the day, the economy adding 209,000 jobs in July, marking
six straight months of job growth above the 200,000 level. The
unemployment rate takes slightly higher up to 6.2 percent. And consumer
product giant, Procter and Gamble saw a profit jump more than 30 percent
this past quarter. Shares rose 3 percent today.

That`s it from CNBC, first in business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. Well, the numbers are out. The
July jobs report is out and even though the payroll gain was below
expectations, it`s far from disappointing.

The new report from the Bureau of Labor Statistics shows the United States
economy added 198,000 private sector jobs and 11,000 public sector jobs.
It totals out at 209,000 jobs added in the month of July overall. The
unemployment rate did add jobs slightly to 6.2 percent.

And folks I know it sounds counter intuitive but this is actually, I
believe good news because the rise in unemployment is mostly the result of
more people joining the search.

In July, the labor participation rate went up by a tenth of a percent to
62.9 percent. And the labor force group by 329,000, which marks the third
consecutive monthly increase.

What`s the bottom line here? The U.S. economy has now added over 200,000
jobs per month for six consecutive months. The last time this happened was
back in 1997.

July was the 53rd consecutive month of private sector job growth in this
country. It is the long streak on record. 2014 is currently on track to
be the best year for U.S. job creation since 1999.

Some people will trying to call this report disappointing, which is proof
the overall landscape is improving and the standards have only gotten
higher. Despite these gains, some Republican say, it`s not enough.

What do they expert say?

Joining me tonight our Rapid Response Panel, Pulitzer Prize winning
journalist, David Cay Johnston and also Peter Morici, who is a Professor of
Economics at the University of Maryland. Gentlemen, great to have you with
us.

Peter, now I remember you and I have a conversation in the green (ph) room
in Minneapolis. You were a little bit down at the (inaudible) on the
economy at that time. This is back in 2009. So I`ve got a -- what has
happened Peter? Tell us, from a conservative standpoint, what has
happened? How good and how bad is this economy?

PETER MORICI, ROBERT H. SCHOOL OF BUSINESS: Well, until now the Obama
recovery has been about the same pace as the Bush recovery. But I think in
this past 12 of months, if we suck out the influence of a very cold winter,
things are finally starting to get better. Things are starting to
(inaudible).

We really haven`t had the kind of jobs growth that we need but at least
that`s been stable. You know, if we look at what happened between 1980 and
2000 it was much more rapid but at least things are starting to get better
and I think if we continue to recover, now the Obama recovery will have a
quicker pace than the Bush recovery. It will be in the upper tunes.

Now, it`s not the 4 percent that we need but let`s face it. Things are
getting better. So I have to concede you that tonight.

SCHULTZ: All right. Please concede that this consecutive numbers of job
growth in months is never been seen before as well. That`s pretty good
considering where we were.

David Cay, what`s the best thing we can say about this economy tonight?

David, maybe you can`t hear me. I will ask you Peter. What`s the best
thing that you can say about this economy tonight? With all the arguments
set are out there, if you are in the classroom at the University of
Maryland, what would you tell to your students? What`s the best thing out
there?

MORICI: Well, maybe if I was in the oval office and the president was
asking me, what`s the best thing I can say? And I would point to the
manufacturing jobs growth. We are experiencing a renaissance in
manufacturing. The president has put his shoulder behind that and that`s a
good thing. I just wish we had more of it.

Part of the problem that we have is the manufacturing that we`re getting is
extraordinarily high-tech from the point of view of production. It doesn`t
require a lot of workers. But now we`re starting to get jobs growth in the
mid 20,000 when we used to get it in around 10,000.

So, you know, it`s not the 100,000 I would like and that you would like but
that is better. American is becoming more competitive. It`s becoming
smarter and smarter and smarter. What worries me most and I think this is
a challenge in no matter where you sit on the ideological spectrum is we`re
not creating enough jobs for ordinary people, the people who really are
happy with a high school education or a couple of years at community
college.

We simply have to do better by them.

SCHULTZ: Well, you know, I`ve had conversations here in the Midwest with
people on that, the tech schools. They don`t seem to be getting the
students that they used to get.

Is it kids come out in high school -- they don`t want to work very hard. I
don`t know if it`s work ethic issue or not or they want to go the
professional route. But when it comes to, you know, skilled labor and
skilled positions it seems like it`s hard to find good people and you know,
folks have go into those kinds of jobs kind end up making, you know, six
figures in their career within the first 10 years of work.

It is a changing economy and I want to focus in on what you just said about
the manufacturing sector being high-tech. Are we going to see more of
this? Have the traditional manufacturing sector, has the left America?
Because when you look at the number of factories that we have seen closed
and we have seen that the number of jobs that have shift overseas. I want
your to take on that. What is the future of that sector?

MORICI : Well the future of that sector couldn`t be more positive, what I
called middle tech, not making T-shirts and, you know, making say
automotive parts, you know, were axel assemblies, things like that. it
could be much more positive, replacement parts in the auto sector. If we
did something about the currency issue with China and both of Bush and
Obama Administrations has bee reluctant to do the kinds of thing that I
have recommended and (inaudible), you know, on the right and on the left
hand recommended, they haven`t been willing to discuss those things but we
could do better in those median tech areas. What regard to the skill
schools, you know, the schools for kids at a high school where they learn
to trade, the real problem is we`ve sealed (ph) everybody in this notion,
you got to go to college to be successful. And there all kinds .

SCHULTZ: Yes.

MORICI: . of paths to success. And, you know, we`re getting a lot of
people come to college that really, I don`t want to say they`re not smart
enough, it`s what are you inclining to do. Not everybody is like me that
want to sit around and do abstract thinking all the time. I mean I grew up
in the blue-collar neighborhood that guide down the street for me John
Anselmo (ph) became a machinist. We were good buddies. We played lacrosse
together.

He like to work with his hands and he made a good living as a machinist
because he was happy doing that and he really got into that. Today that is
discouraged. Where I went to high school, if you wanted to track they
said, "That`s fine. We`re going to show how to make a good living that
way."

SCHULTZ: Well, that job that you just described, I had a conversation with
a gentleman owns a number of car dealers in the Midwest just last week.
These high-tech technicians in the car industry that pay $80,000 to $85,000
a year, they can`t find people. They .

MORICI: I know.

SCHULTZ: . can`t find those -- do you agree with me on that? I mean, do
you hear that as well?

MORICI: I have several friends who own strings of dealerships that at my
club and I hear the same thing from theme. And you know, if you know
anything about fixing a car, you know, I`ve been in conversation
continuously through the automotive crisis with Ford.

If you anything about these cars today, they require a lot of branch to
fix. This is not the work for dump people. It just happens to be people
who like to work with machinery, work with their hands but .

SCHULTZ: Yes.

MORICI: . it requires a reasonable amount of training, a year or two.
It`s not just tinkering anymore and it`s not intuitive. And it`s really
ashamed but young people need to be encourage. You know here`s where I
think -- want to ask me something that president could do this. Not
ideological. He needs to start going on to the high schools and talking
about why it`s a good thing to do those kinds of jobs.

SCHULTZ: Well, it is a good thing to do those kinds of jobs.

MORICI: Would nothing beneficial.

SCHULTZ: I think it would be beneficial. I thought it will be -- I think
it will be beneficial if the congress could get together in the jobs
package maybe we could try infrastructure but it might bring some people
back into that far to the economy.

David Cay Johnston with us tonight as well. We`ve got our tech problems
squired away. David, what`s the best thing you see out there about this
economy right now?

DAVID CAY JOHNSTON, PROFESSOR SYRACUSE UNIVERSITY LAW: Well, we`re
continuing to get job growth and we will continue to have that and it would
happen a lot faster if we had the government investing the future. That`s
the single most important thing holding us back that we`re not putting to
work people with things we need to do particularly fixing up our
infrastructure. That would make job growth just take off.

SCHULTZ: Take off, give us the number. What would we be seeing? Would be
adding 300,000 or 400,000 jobs a month as opposed to 200,000?

JOHNSTON: Depending on how much we spend, yes. There is plenty of slack
out there. We could add 400,000 jobs a month, 400,000 jobs a month until
we get to where we should be. We`re behind about 7 million jobs and it`s
entirely on my view a function of austerity that has not worked to why
overall we`re soft now than we were in the year 2000.

SCHULTZ: So, moving forward, if we don`t have a congress that wants to
invest in anything, is this maybe as good as it gets?

JOHNSTON: Well, it should accelerate somewhat. I mean over time, we
should see the economy as more people have (inaudible), we`re seeing the
minimum wage raise in various places as we see people coming back into the
workforce, the growth should accelerate some but not nearly to the degree
that it should.

We used to come out a recessions like this now we`re coming like this and
it`s mostly because of the government .

SCHULTZ: Yes.

JOHNSTON: . holding back the economy.

SCHULTZ: All right, David Cay Johnston, Peter Morici, great to have both
of you with us tonight talking about the economy. The numbers out there
are good. No doubt. Thanks for joining us.

Coming up, the all stars of immigration debate. Keep it here, we`re back.

(COMMERCIAL BREAK)

SCHULTZ: And Pretenders tonight, Dr. Distortion, Ben Carson. The Tea
Party darling says fighting for marriage equality is the same as poking God
in the eye. Carson joined the low rated family talk radio to trash
Christians who defend same sex marriage.

(BEGIN VIDEO CLIP)

BEN CARSON: Well, you know, my emphasis is that marriage is an institution
established by God himself, and when you look in the New Testament, you see
that the marriage relationship is used to help us understand his
relationship with his people.

UNIDENTIFIED FEMALE: That`s right.

CARSON: So when you start distorting that, I mean, you`re really going
pretty deep into the finger-in-your-eye to God.

(END VIDEO CLIP)

SCHULTZ: Ben Carson`s accusation is more eye-rolling than I popping. The
bible says, God wants you to love thy neighbor. Discrimination isn`t in
the 10 commandments. If Ben Carson thinks pointing fingers well wash his
hands of obstructing equality, he can keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. This is the story for the folks who
take a shower after work, lots to interpret right now, I`d say that. This
week the immigration debate has brought out the worst of the worst in the
Republican Party. The level of discourse has really falling to new laws.

(BEGIN VIDEO CLIP)

STEVE KING, (R) IOWA: We have thousands of pounds of marijuana coming
across the border. It is one the backs of young people that fit the very
demographic of some of those that are in these facilities now.

UNIDENTIFIED FEMALE: They did tell us that the 100 percent of the girls
coming up from Guatemala were on birth control.

GOHMERT: They have said, they want to turn Texas (inaudible), they want to
turn America blow. And if you bring in hundreds of thousands or millions
of people and give them the ability to vote .

KING: The advertisement that has been a such a huge magnet that have
caused these families to give their daughters birth control pills and send
them down a rape path all the way through Mexico and it`s a death path on
the death string.

GOHMERT: Its President Obama`s lawyer is not going allow them to ask for
an ID, so go vote or you`re going to loss your benefits, you`re getting
now. That drives people to vote and it will ensure that Republicans don`t
even get elected again.

(END VIDEO CLIP)

SCHULTZ: Joining me tonight, Lionel, New York Television Legal Commentary
and let me tell you premier news decoder.

LIONEL, LIONELMEDIA: Indeed. Its sounds like a -- it`s a death trap. Its
sounds to get like a bad Spreve Stein (ph) cover band. It`s a path of
death on the train of the -- it`s a suicide. Baby we`re born to run. As
the great (inaudible) said, "Ed, how do they get so far?" What are we
talking about? I mean .

SCHULTZ: No one knows what we`re talking about, what they have ginned up.
First of all there`s a law on the Bush that forces this country to deal
with these young kids who were being smuggled into the country. The
congress won`t do anything.

LIONEL: They`re already here. How exactly are we going to either remove
those who already here? And by the Ed, I don`t want to suggest xenophobia
racism but when we talk about legal aliens, we`re not talking about the
Swedish bikini team. We`re not talking about the Irish bar keeping in
Shadyside. We`re talking about basically Mexican, which I get it and now
we have the Ebola scare thrown in here.

So my question is if we were to snap our figures right now and every
undocumented or illegal alien here today were to vanish, you know what
would happen to the infrastructure alone in this country, in terms of
commerce. That`s number one.

Number two, we`re talking about what, a 2,000 mile border, what kind of a
fence or wall or divider are we talking about. And there is a -- if we
were to build it, who do you think would be doing the construction for the
very site? I mean, it is insoluble. I don`t mean to make light of it, do
I may seem like I am, but it`s beyond my pay grade here today but the
rhetoric Ed. The -- Michele Bachmann was talking about kids, kids being
sold or turned over from medical experimentation. I don`t want to go back
into ..

SCHULTZ: Oh, I know this is .

LIONEL: . historical (inaudible) of that.

SCHULTZ: It`s unbelievable. Right wing radio has also been taken over
with the immigration talk. Here it is the anti-immigration talk.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I`m greatly concern because I don`t think we`re going
to win this immigration bill. I really don`t.

JIM GILCHRIST: A convert Trojan horse invasion where you incrementally
transfer the population of one country, say Mexico and Central America,
China, Russia, all these countries who have violated immigration laws in
masses and millions, transfer those people into the host country being the
United States.

MICHELE BACHMANN: No only people with potentially terrorist activities but
also very dangerous weapons are going to cross our border in addition to
very dangerous drug, the American, and also life-threatening diseases
potentially including Ebola and other diseases like that.

(END VIDEO CLIP)

SCHULTZ: Why do I think Michele Bachmann`s idea of immigration is that
everybody has the last name Bachmann. I mean that`s about as far as she
wants to go .

LIONEL: Ed, I don`t want that.

SCHULTZ: . when it comes to immigration reform in this country.

LIONEL: Ed, can we go .

SCHULTZ: And Glenn Beck back says we have to win a battle.

LIONEL: No, and .

SCHULTZ: We`re fighting -- we`re fighting here.

LIONEL: Glen said, if you have a problem, Huston, we have a problem. No,
Michele Bachmann and others but then you`re killing me with this peroration
from this. We have, not only the Mexicans, the Russians and Chinese, all
of them Ebola (inaudible) weaponized, drug coding, drug trafficking, people
who hate our -- oh, terrorist, all coming over. And here is the question,
right now, I would say terrific, what do we do? And don`t tell me about
the fence. Something tells me Ed that in our level of electronic
sophistication, a fence, (inaudible) necessary cut it. What exactly is
their solution? I`m waiting.

SCHULTZ: We will answer that question next week. Lionel, always great to
have you with us on the Friday Edition of the Ed Show, thank you so much.

LIONEL: God bless you Ed.

SCHULTZ: And that is -- you between. That is the Ed Show. I appreciate
your time tonight folks. I`m Ed Schultz.

Politics Nation, with Reverend Al Sharpton, starts right now.

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