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The Ed Show for Friday, October 17th, 2014

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Show: THE ED SHOW
Date: October 17, 2014

Guest: Annette Taddeo, Brad Woodhouse, Peter Hotez, Peter Morici, David
Cay Johnston, Jennifer Epps-Addison


(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have an extremely peculiar situation right now.
Governor Scott will not join us from this debate.

UNIDENTIFIED MALE: Watching on a very tight governor`s races across the
county.

UNIDENTIFIED MALE: You`re asking a lot interesting questions.

UNIDENTIFIED FEMALE: Senate races are so seemingly deadlock.

ALISON LUNDERGAN GRIMES, (D-KY) SENATE CANDIDATE: What a huge crow for
Senator McConnell`s retirement party.

SEN. MITCH MCCONNELL, (R-KY) MINORITY LEADER: I think its fun to have
website.

UNIDENTIFIED FEMALE: You made a career out of outsourcing. How do you
defend that?

UNIDENTIFIED MALE: Yes defend it, I`m proud of it.

REP. TOM COTTON, (R) ARKANSAS: We don`t have farm field we have a big
stand field.

LARRY SABATO, DIRECTOR, UNIVERSITY OF VIRGINIA`S CENTER FOR POLITICS:
South Dakota was thought to be an easy game.

FRM. GOV. MIKE ROUNDS, (R) SOUTH DAKOTA: I believe the EB-5 project was
good for South Dakota.

UNIDENTIFIED MALE: Is South Dakota suddenly up for grab?

UNIDENTIFIED MALE: It is still too close to call.

JONI ERNST, (R-IA) SENATE CANDIDATE: Let`s make him squeal.

(END VIDEO CLIP)

ED SCHULTZ, MSNBC HOST: Good to have you with us tonight folks thanks for
watching. If you like politics you have to admit it it`s been a fun week.
Things are heating up.

We`re just 17 days from the midterm elections and the key senate races are
close. If Republican`s talks control to the senate, no doubt it be bad
news for the middle class in this country. Everything is at stake
Obamacare, jobs, green energy, climate change, and minimum wage.

You know, this is on full display in the middle of the county. In Iowa,
the latest Quinnipiac poll shows Tea Partier or Joni Ernst up on
Congressman Bruce Braley by two points. Ernst if she wins she will bring
her friend`s right wing ideas to Washington.

In the debate last night Ernst made clear where she stands on Obamacare.

(BEGIN VIDEO CLIP)

ERNST: Every Iowan and every American deserve to have affordable quality
health care, but Obamacare is not the answer and I will tell you why.
Obamacare is a job killer and we have seen that here in Iowa. It is a
massive tax increase, $1.2 trillion over the next 10 years for the American
people. And it takes our health care decision out of our hands, out of our
doctor`s hand and places them in the hands of nameless faceless bureaucrats
in Washington D.C., so I don`t support Obamacare.

(END VIDEO CLIP)

SCHULTZ: Well, we`ve got a new candidate to replace Michele Bachmann don`t
we? It is not a job killer, it is not going to kill people, it does not
put the government between you and your doctor. She`s regurgitating all
these old bullet points that have been out there. I hope folks for Iowa
are smart enough to understand that it`s very important that 10 million
people in this country have gotten health care because of the law that was
passed.

Now down in North Carolina we have a very -- another close race. Senator
Kay Hagan is up against Republican North Carolina State Speaker Thom Tillis
by two points. Speaker Tillis thinks that minimum wage is a job killer.

(BEGIN VIDEO CLIP)

ST. SPEAKER THOM TILLIS, (R-NC) SENATE CANDIDATE: This is something that I
believe is best left to the stage versus another regulatory overreach. We
need to understand the job killing consequences to this sort of policies.
That it is not something that Kay Hagan going to Washington should agree
with Washington politicians about how we actually deal with that issue in
North Carolina.

We`re creating this mindset that we have a minimum wage economy, I mean
that most people are going to be on minimum wage. I want to create economy
where minimum wage is a very great stepping stone to higher paying job so
people can realize their dreams.

(END VIDEO CLIP)

SCHULTZ: The fact is minimum wage does not kill jobs. Every time it`s
been raised it never did, statistic show it.

Now down in Georgia Michelle Nunn and David Perdue are neck and neck. Now
in the beginning of October, a PPP poll had Perdue up by three points.
Then on October 7th this happened.

(BEGIN VIDEO CLIP)

MICHELLE NUNN, (D-GA), SENATE CANDIDATE: David has said that he has unique
experience to, you know. Really give him the opportunity to serve in the
senate with 10 other folks that have business experience. But I`ll tell
you he would be even more unique than that. He would be the only senator
that from his own words has built a career around outsourcing American
jobs. That`s not the experience that we need in Washington.

David in his deposition talked about 16 countries, Thailand, in Singapore,
in India, Pakistan. But not once that he talk about creating jobs in the
United States.

(END VIDEO CLIP)

SCHULTZ: When you start talking about shipping jobs overseas it riles
voters up. Just like he did in 2012, we saw it on the road when we were on
Freeport, Illinois. That the strikes the passion of people.

Perdue`s record of being a proud outsourcer is not playing very well with
hardworking folk of Georgia. Now, the latest survey USA poll conducted
after the debate shows that Nunn is up by three points.

Let`s go to Arkansas. Fringe Republican Congressman Tom Cotton is up on
Senator Mark Pryor by only three points. It`s within the margin of error.
As we pointer out on this program Tom Cotton has painted people food stamps
as addicts. Cotton wants to cut food stamps and drug test people who need
assistance. Need assistance he wants to drug test them. These four races
are really microcosm for Republican Senate.

Ernst wants to repeal Obamacare, Tillis wants -- he is against a federal
minimum wage, Perdue is a proud outsourcer, and Tom Cotton wants to cut
food stamp spending. Now if you vote Republican this is what to Senate is
going to look like, plus if Republicans win the Senate impeachment of
President Obama, do you think that`s not going to be on the table? Think
again.

There are some very important gubernatorial races that are going on as well
and all tight. Its look like Democrats may have advantage here, in
Wisconsin the latest poll from Marquette University has Scott Walker and
Mary Burke tied at 47. That poll was released two days before this
happened?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What is your position on the minimum wage, should we
have it.

GOV. SCOTT WALKER, (R) WISCONSIN: Well I`m not appeal it but I don`t think
it`s -- I think it serve a purpose because were debating in about what the
lowest levels are at. I want people to make like I said the other night
two of three times that.

(END VIDEO CLIP)

SCHULTZ: Minimum wage doesn`t serve a purpose, did you know that? Did you
know that take home pays just not very important to Americans. That`s
basically what Walkers pitching to the folks of Wisconsin. It`s just not
that big of a deal to take home more money. No surprise there and Walker
is also advocating voter suppression.

(BEGIN VIDEO CLIP)

WALKER: For us this is a common sense reform that protects the integrity
of each and every vote. I was town hall meeting yesterday at Appleton
where I took question from the crowd and one person asked me "How many
cases of fraud have there been on the state?" And I said it doesn`t matter
if there is 1, 100, or a 1,000. I asked amongst us who would be that one
person who would like to have our vote canceled out by a vote that was cast
illegally?

(END VIDEO CLIP)

SCHULTZ: Well Governor Walker you got to answer the question. How many
cases of fraud had been documented in Wisconsin? Zero, Walker`s time maybe
coming to close here as Wisconsin governor and I sure hope so. Let see,
his been against Obamacare, his attacked unions, his cut education funding
to the tune of billion dollars and has failed to create the jobs that he
promised, 250,000 the state is well short of that.

Now over in Pennsylvania Republican Governor Tom Corbett is almost
certainly going to lose his job. The latest Quinnipiac poll shows Democrat
Tom Wolf up by 17 points. Corbett has really let the oil industry run wild
in his state. He`s rolled back regulations on fracking and gas drilling.
Corbett let the entire, the entire Chester Upland School District go
bankrupt. He signed a current controversial voter I.D. law that makes it
even harder for people in the state to vote. Now he will likely lose his
job.

All right, now let`s go to Florida where it`s really hot. The latest
survey, USA poll shows Charlie Crist up by four points on Governor Rick
Scott. Overall poll are mixed. It`s going to be a photo finish, it`s
going to be a close one, there`s not going to be much air between either
one of them at the end. Much of these weeks debate was focused on fangate.
But after the fan fight, the real Rick Scott shined.

(BEGIN VIDEO CLIP)

GOV. RICK SCOTT, (R) FLORIDA: The CBO says 500,000 jobs will be lost if
Charlie gets his minimum wage increase. Obamacare is a bad law. People
are losing their doctors, they`re losing their plans.

I believe in tradition marriage we`ve got to understand people have
different views.

UNIDENTIFIED FEMALE: I`m sorry I got answer to the question. Do you
believe the ban is discriminatory?

SCOTT: I don`t believe on discrimination.

Charlie signed legislation that allowed companies like Duke to pass on
costs for power plant that were never built.

FRM. GOV. CHARLEY CRIST, (D) FLORIDA: That`s true.

SCOTT: I stopped.

CRIST: That was Jeb Bush.

(END VIDEO CLIP)

SCHULTZ: A little history lesson there for the Governor. Many of these
races are close. Voter turnout is going to have a huge impact to the
midterm election. Who`s motivated, who wasn`t. People need to stay
focused on their races and remember the consequences over Republican Senate
and Republican-controlled state houses affect middle class Americans and
families in this country. The culture of greed will continue unless
Republicans are stopped.

Get you cellphones I wonder what you think. Tonight`s question, "Will
voters stop a Republican takeover?" Text A for yes, text B for no to 67622
you can always go over our blog at ed.msnbc.com, leave a comment there,
will bring you the result later on in the show.

For more tonight let me bring in Democratic Candidate for Lieutenant
Governor of the State of Florida Annette Tadeo. Annette great to have you
with us tonight, you got to be exited because these polls are obviously
polls are all over the place, but there are some very positive trends that
are taking place for your camp. What do you think happened last night in
the debate? I mean is this really starting to turn in Charlie`s favor and
in your favor?

ANNETTE TADDEO (D-FL) LT. GOV. CANDIDATE: Well, what we saw was Rick Scott
having a tantrum and then not coming out for a whole seven minutes, and all
of us wondering if there was even going to be debate. And I`ll tell you
what Floridians saw, is a sad governor who actually prefers to fight over a
fan than to talk about the issue that are important to us such as expanding
Medicaid.

I mean how can he worry about a fan when we have a million Floridians
without health issuance because he won`t expand medicaid? He won`t raise
the minimum wage, he doesn`t think that -- it makes him cringe, he actually
said that. I mean he doesn`t believe that women should make the same
amount as a man for the same job. $0.83 of the $1 is what women make in
Florida for the same job.

So, there are so many issues and let me say the number one thing, $1.3
billion he cut from education, he`s worried about a fan while are kid`s
education has been disseminated.

SCHULTZ: What has been the reaction of Floridians to him not coming on
stage and making an issue of that? What was the conversation?

TADDEO: Well, I mean I believe that people are just -- seen the real Rick
Scott. But you were right when you said that, you know, in the rest of the
debate we actually got to see even more of him. I mean it just -- I was
like amazing that he had the tantrum but then his questions it was night
and day.

You got Charlie Crist for raising the minimum wage and, he`s not. You got
Charlie Crist for expanding Medicaid, he`s not. You got Charlie Crist for
letting people marry who they loved, his not.

I mean so -- it was just a huge contrast and Florida is ready to move the
state forward. But I will tell you something else. The environment,
Florida depends on our beautiful Everglades and the water and -- it`s a
tourist`s place. And I just can`t believe that he doesn`t, you know, he
makes all kinds of thinks up about the fact of the Everglades but it was
Charlie who is there from the beginning and it`s only Charlie who wants to
invest in solar energy and the jobs of the future.

SCHULTZ: Annette the turnout. We hear this conversation all over the
country. But I think it applies probably more to Florida than anywhere
else and certainly this race has a lot implication for 2016. It`s the only
mega swing state.

Where you do you have to have the turnout. I know you`re going to tell me
all over the state but I mean there got to be some critical areas and what
kind of turnout are you going to get where you got to have it?

TADDEO: We`re going to get the turnout and I`ll tell you how were doing
it. We are doing the same ground game kind of plan that we did in 2012 for
Barack Obama and we got the voters out. And we have unprecedenting (ph)
campaign when it comes to the group, 36 offices across the state from
Pensacola to Jacksonville obviously Orlando, Tampa, and South Florida.

Eight offices alone in Miami Dade, nine in Broward, I mean we`re obviously
spending a lot of energy and time in the South Florida area but as well as
the I-4 corridor. All these areas are extremely important. But you know
what? The last election was decided by around 61,000 votes.

Every vote is going to count, that`s the reason why we have offices all
throughout the state and why the first lady was here today -- is here in
South Florida today talking about the importance of knocking on those doors
and doing the ground game that we know how to do so well.

SCHULTZ: All right, Annette Taddeo, keep up the fight thanks for your time
tonight. I appreciate you being with us.

For more let me bring on Brad Woodhouse of the American Bridge 21st
Century. Brad everybody predicting a Republican Senate, what do you think?

BRAD WOODHOUSE, AMERICAN BRIDGE 21ST CENTURY: Well look Ed, I was sitting
in a chair just like this two years ago when Republicans were measuring
drapes on their new Senate offices and Mitch McConnell was measuring the
drapes on the majority leader`s office and it didn`t happened.

Look, Democrats have a really good track record of turning people out in
key Senate races in key cycles, and I think that we will do that again.

Every single race that`s important is a toss up and we have some that are
trending in our direction. Michelle Nunn is trending in our direction,
David Perdue is proud of outsourcing. Who in God`s name is proud of
sending jobs overseas in Iowa?

SCHULTZ: Yeah.

WOODHOUSE: That race I think is really moving towards Bruce Braley.
People have seen in Joni Ernst. She wants to get rid of Obamacare,
shutdown the Department of Education, eliminate the EPA. I mean that`s
just wacko birds, Ed. And so I think things are moving in our direction in
some races, other races are tougher but they`re all toss ups so, you know,
I think it could go either way but I always feel good about out track
record in Senate races in key cycles.

SCHULTZ: What do you think of North Carolina? There has been
unprecedented voter suppression in State of North Carolina. Is Kay Hagan
going to go back to the senate?

WOODHOUSE: I think Kay Hagan will go back to the Senate. I mean Tom
Tillis has been Speaker of the House, and the key issue in the race in
North Carolina has been education. He`s been Speaker of a House and his
work with Governor McCrory down there, whose going to have very tough
election in 2016, to slash education, to slash funding for teachers. And
that`s been the key issue and she has prosecuted that issue very well,
Tillis is not -- not that great of a candidate.

And he has these extreme views, I mean he would get rid of the federal
minimum wage. It`s just extraordinary that Republicans are campaigning on
getting rid of the minimum wage when wage disparity in this country is one
of the biggest issues we`re dealing with.

SCHULTZ: Brad Woodhouse, why did Alison Grimes not say she voted for
president Obama? What is the downside of saying that you didn`t want Mitt
Romney to be president? What`s the downside of saying that you didn`t what
John McCain to be president? I mean, I just think there was a serious
miscalculation here. And, then she tries to hide behind the sanctity the
vote -- the way it`s in the constitution of Kentucky.

So what? How about some clean speaking and say "Yeah, I voted for Obama
because I didn`t want Mitt Romney to president because he does not give a
damn about the 47 percent, bingo your done, why didn`t she do that?

WOODHOUSE: Well look Ed, I think a lot of people think that she -- she
should have done that. Now look, I think you can understand a candidate in
the state of Kentucky where President Obama is extremely unpopular, I think
wrongly so but he`s unpopular. Tries to find ways to distance himself
from, you know, from that person.

But, you know, the truth is that their very good reasons for the people of
Kentucky for someone to cast a vote against Mitt Romney.

I mean, my gosh, Kentucky needs job, Romney was outsourcers. I think that
would have been the better way to handle. But not withstanding that --
that race remains extremely close and, you know, the Clinton`s have been in
there and.

SCHULTZ: Well Democrats pulled out of there. The Democrats are yanking
money out of Kentucky, what about that?

WOODHOUSE: Well look, I think that -- I think that`s been a little bit
mischaracterized. So, Alison Grimes has all the money she needs to get her
message out. The DSCC has diverted some advertising spending elsewhere.

SCHULTZ: Yeah.

WOODHOUSE: There`s still spending on the ground, and let me just say this
for American Bridge, Americans United for Change, all the organization I`m
involved with. We`re still in Kentucky and we`re everywhere and we`re
going into additional states, we`re expanding the map, South Dakota and
Kansas.

SCHULTZ: Well, I think so somebody sent an e-mail to Grimes and tell her
to hold the press conferences to say who she voted for. That would be good
start, I think. Brad Woodhouse, good to have you with us tonight. I
appreciate your time. Thanks so much...

WOODHOUSE: Thanks Ed.

SCHULTZ: ... good work. You bet. Remember to answer tonight`s question
there at the bottom of the screen, share your thoughts with us on
Twitter@edshow, like us on Facebook and thank you for that. We want to
know what you think.

Coming up, Americans deserve a raise right? Well Republicans fight against
minimum wage every chance they get.

But first a U.N. official`s admission that their mishandling of Ebola stand
tall, President Obama appoints a response coordinator.

Keep at here we got the latest, we`ll be right back.

(COMMERICAL BREAK)

(BEGIN VIDEO CLIP)

PRESIDENT BARACK OBAMA, THE UNITED STATES OF AMERICA: Up until this point,
the individual here have been running point and doing an outstanding job in
dealing what is a very complicated and fluid situation.

It may makes sense for us to have one person in part -- so that after this
initial surge of activity, we can have a more regular process just to make
sure that we`re crossing all T`s and dotting all the I`s going forward.

(END VIDEO CLIP)

SCHULTZ: Welcome back to the Ed Show.

President Obama has responded to calls for an Ebola czar to lead the
country`s efforts to combat the virus. The President has named Ron Klain
as the county`s Ebola Response Coordinator. Klain will report to Online
Security Advisor Lisa Monaco when National Security Advisor Susan Rice.

The White House says that expects him to fill the role for about five to
six months. Klain has a long political resume serving in the Obama White
House and as Former Chief of Staff to Vice President Joe Biden, but does
not have a medical background. So, but is he a good manager. That`s the
question.

Now, as the United States subs (ph) efforts to fight the spread of Ebola
within its boarders, the World Health Organization admits to botching their
attempts to stop the outbreak in West Africa. The Associate Press reports
and internal document saying, "Nearly everyone involved in the outbreak
response failed to see some fairly plain writing on the wall."

The document notes the region`s boarder issues and poor health care system
made traditional containment methods for the virus ineffective. One of the
doctors who discovered the Ebola virus slammed the organization`s Africa
office saying that it was not competent. H questioned why it took the
agency five months to declare the outbreak and international health
emergency.

And speech to diplomats this morning, Secretary State John Kerry reiterated
the need for an international response to the Ebola crisis.

(BEGIN VIDEO CLIP)

JOHN KERRY, U.C. SECRETARY OF STATE: No one country, no individual group
of nations is going to resolve this problem by themselves. This is going
to take a collective global response all hands on deck. That`s the only
way to get it done.

(END VIDEO CLIP)

SCHULTZ: Let`s turn tonight to Dr. Peter Hotez who was the founding dean
of the School of National School of Tropical Medicine at Baylor College of
Medicine.

Doctor, good to have you back with us again tonight.

DR. PETER HOTEZ, TX CHILDREN`S HOSPITAL: Good evening.

SCHULTZ: Do you think that someone -- you bet, do you think Doctor,
someone with a medical background needs to head up the organization and the
front-line of front office organizing to fight this and organize against
this Ebola virus? What are your thoughts on this?

HOTEZ: Well I think the President is sending a strong message. And the
message is, he`s not replacing Dr. Frieden, Tom Frieden is to remain in
charge of all the public health activities. But by appointing in non
physician he`s identifying someone to help coordinate all of the other
aspects.

Right now, Ebola as you know in the United States is not just the health
problem anymore it`s a communications problem, it`s a fire -- an emergency
problem, it`s an air transportation problem, it`s really multifactorial and
multi-sectoral at this point.

SCHULTZ: What would you expect him to do? From a medical perspective, as
a doctor, someone that might be in the thick of this, what would you expect
this Czar to do?

HOTEZ: I think it`s to bring more cohesiveness to all the different moving
parts to this. As I just mentioned there are a lot of different elements
that go beyond public health. I think it`s to better integrate them. And
I think probably there`s a component of communicating the message.

You know, if look at what Dr. Frieden`s activity are these days. He`s
spending almost as much time communicating with the press and communicating
the Congress as he is doing public health activities. So, I think maybe
part of this is to put him back in the trenches and -- to fight disease.

SCHULTZ: Doctor, your thoughts on a travel ban? This seems to be the hot
potato amongst people in the decision making process and of course at a
hearing yesterday in Washington, that`s all they talked about. It seemed
like just what do we do, what`s the next best available option for us. Do
you think a travel ban from these affected countries would be the right
move right now?

HOTEZ: Well, if you ask me a week ago and I would have said, "Look, we
just have one Ebola patient who managed the slip through the outbreak,
there`s no outbreak in Dallas everything is contained." I would have said
pretty emphatic, no that`s not the way go because potentially hamper
emergency operations for health care workers in West Africa.

Now that we have a bit of a mess on our hands where you have, sadly two
health care workers now with Ebola virus infection. We have a lot of
disruption both economically and otherwise in Dallas, in Texas maybe we
have to do reconsider something. So, I think it`s the fluid.

Right now, we only have one single imported case. We`re able to contain it
and maybe we have to wait a little longer and see what unfolds. But, there
are other ways to argue that as well. I think if we have another imported
Ebola case there`s going to be enormous public pressure to close boarders
and it`s going to be hard for the President to say no to that.

SCHULTZ: Now, the World Health Organization in one country has declared
the outbreak over. How is that determined? How is it determined that an
outbreak is over in a country?

HOTEZ: The way to determine that -- well, Ebola is not subtle, right?
Ebola is not subtle like, you know, for polio, for every polio case, you
have 100 cases without any symptoms. Ebola doesn`t behave like that. If
you have Ebola you`re going to know it.

So, right now, we only have evidence of a single Ebola case in Senegal, the
-- all of the context have been identified and traced and quarantined and
there`s been no other cases. So, I think it`s safe to say.

The other good news is I think it`s about to happen in Nigeria as well. I
think we`re just a couple of days out, you know, knock on wood that Nigeria
is going to be Ebola free as well and there are about 20 cases all
together.

So, I think we have to say that where health systems are in place and the
country has not gone through a horrific conflict or post conflict
situation, that it is possible to contain Ebola in West Africa. And
Nigeria and Senegal are going to be two good examples of that.

SCHULTZ: All right. Dr. Peter Hotez, thank you for your time again
tonight sir. I appreciated it so much.

Coming up, out of touch Republicans action is keeping over a 1.5 million
Americans living in poverty.

Plus Dr. Delusional, Keith Ablow doesn`t think that the United States has a
president, he lands in Pretenders tonight.

Stay with us. I got your questions next here on Ed Ask Live.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. I appreciate all the questions in
our Ask Ed Live segment.

Our first question tonight comes from Nicole (ph). She wants to know, "Do
you think it`s wise for Democrats to speak negatively of President Obama in
their campaign ads?

That would be, no. It is not wise. Why in the world would you talk
negatively about someone who has saved jobs, created jobs -- I mean I could
go right down the list. Why? If you don`t want to connect yourself to
President Obama just don`t mentioned him.

The other question tonight is coming from Cathe. Happy Friday she says and
Ed, what are your weekend plans?

Well, it`s the fall. We`re going pheasant hunting. In fact, I wish we can
move this camera because by two black labs are seating around inside the
door here. They are ready to go. They know the show is over in 30
minutes.

Stick around Rapid Response Panel is next.

MORGAN BRENNAN, CNBC MARKET WRAP: I`m Morgan Brennan with your CNBC Market
Wrap.

A triple digit gain for the Dow and turns a tough week up 263 points today,
the S&P adds 24 more than 1 percent, the NASDAQ climbs 41 points.

Shares of Morgan Stanley rising 2 percent today, the company`s earnings
soared nearly 90 percent easily beating estimates.

Housing starts jumps 6.3 percent in September, it`s a sign of an improving
real state market.

And consumer sentiment increased, putting the highest level in a more than
seven years.

That`s it from CNBC first in business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. Think about this, we got an
election coming up. Income inequality in this country is near its highest
level in the past 100 years. Fed Chair Janet Yellen says she`s concerned.

(BEGIN VIDEO CLIP)

JANET YELLEN, FEDERAL RESERVE CHAIR: The past several decades, we`ve seen
the most sustained rise in inequality since the 19th century. After more
than 40 years of narrowing inequality following the Great Depression.

By some estimates, income and wealth inequality are near at their highest
levels in the past 100 years, much higher than the average during that time
span and probably higher than for much of American history before them.

(END VIDEO CLIP)

SCHULTZ: The wealthiest 5 percent still hold two-thirds of all assets,
financial gains of mostly been for people at the top of the spectrum, wages
have been stagnant for the majority of Americans.

New analysis by the Economic Policy Institute gives solid proof of why the
minimum wage should be raised. If the minimum wage was set at $10.10 per
hour, more than 1.7 million Americans could stop relaying on public
assistance programs in this country. That would mean the federal
government would save $7.6 billion or more each year.

Income inequality has become a huge topic in congressional races across the
country. Just look at Iowa`s Tea Party Candidate for the Senate Joni
Ernst. Ernst believes the minimum wage needs to be set by the states
because Iowa`s cost of living is so low, I don`t know how she comes to that
conclusion of federal mandate should help Iowa.

Joni Ernst I think is out of touch. During a discussion about taxes in
Thursday`s debate against Democratic challenger Congress Bruce Braley,
Ernst said, the IRS should be scrapped.

(BEGIN VIDEO CLIP)

ERNST: I do believe that we need to lower taxes on our hardworking Iowa
when immediately, which is something that we have done with this tax cuts
that we have implemented here in Iowa. But, then work over the long-term
to reform our tax system, I say scrap the IRS, let`s start all over again.

REP. BRUCE BRALEY, (D) IOWA: Every solution she has is throwing darts at
the board, trying to get rid of programs that have had significant impacts
and made a difference on the life of Iowans.

(END VIDEO CLIP)

SCHULTZ: So what`s the solution to remedy income inequality in America?

Joining me tonight our Rapid Response Panel, Peter Morici, Professor of
Economic Robert H. Smith School of Business, also with us tonight Pulitzer
Prize-winning Journalist David Cay Johnston.

Gentleman good to have with us tonight.

Peter, I read your article earlier this week, you`re bullish on this
economy, you think we`re not going anywhere -- we`re not going down I mean
you cited what`s going on in China, you cited what`s going on in Europe.
If we`re strong and things are going well, why can`t we do minimum wage and
what minimum wage to $10.10 do to our economy Peter?

PETER MORICI, ROBERT H SMITH SCHOOL OF BUSINESS: Well, my view is that the
most important thing to do is to create more jobs. We`re growing but we`re
not growing rapidly enough. And when President Obama campaigned for the
White House, he talked about dealing something about the China and all the
jobs that are going there and he hasn`t deliver. He talked about drilling
for oil offshore and he hasn`t delivered.

You know, the minimum wage according to the congressional budget office
which is nonpartisan, you know, the Economic Policy Institute is squarely
on the Democratic camp, I think you`d agree. According to them, it would
unemployed 500,000 to a million people.

I`m in favor raising the minimum wage in line with inflations since the
last time President Obama signed off. That would be fine with me that
would cost no job.

But, going to $10.10 -- unemployed 500,000 people, to me that creates
500,000 more poor people.

SCHULTZ: David Cay Johnston, do you agree with that?

DAVID CAY JOHNSTON, COLUMNIS AL-JAZEERA AMERICA: No. My friend Peter here
is misreading the CBO numbers. The fundamental problem that we have is
lack of capacity to buy goods and services, what economist called aggregate
demand.

Walmart, its finances are deteriorating. It`s taking out more debt. Its
profit margins are shriveling because its customers don`t have the income
to buy their goods. And if Walmart -- I pointed out in my columns,
Newsweek and Al Jazeera America, went to the system, It gives bonuses to
store managers but we would see them promoting higher wages.

We would see Walmart in favor or a $15 minimum wage. The measure for store
managers is, how much did you increased sales in your story year over year.
They used to measure at Walmart the top executives that way, they stopped
doing it.

We need to connect and align the interest of executives in this country not
just with shareholders but with workers and customers.

SCHULTZ: Peter, Janet Yellen, the Fed Chair, she`s concern about the
rising numbers of income and equality. How would you address that? If you
don`t want to raise the minimum wage, how would you address it?

MORICI: Well simply I would just do something about the trades deficits
with China, that would create $3 to $5 million additional jobs, good solid
manufacturing jobs, a drill for oil offshore, so we`d stop sending money to
terrorist in the Middle East, that would create lots of domestic jobs,
probably another 2 to 3 million.

The real answer is to get to get this economy growing at all cylinders,
both through the Bush and Obama administrations, through the whole time,
the economy is average 1.5 percent growth.

During the Obama recovery, it`s been 2.2 percent. You know, during the
Reagan years, they were doing double that. They were doing 4.5. Now, I`m
not saying that we should go back and go back Gipper`s policies because
times have changed, circumstances have changed, and lots of people are
hurting.

But one of reason they are really hurting is because neither President Bush
nor President Obama has been willing to gets tough with the Chinese on
trade. It`s the mismanagement of globalization that victimizes our workers
and has to be fixed.

SCHULTZ: Yes well, you`re not going to do that in 90 days. You`re not
going to do in a quarter. You`re not going to do it in a year.

MORICI: I can do that in 24 hours.

SCHULTZ: I mean dealing with straight...

MORICI: Wait a minute. Hold on a second...

SCHULTZ: 24 hours?

MORICI: I`d put a tax on the conversion of dollar to Yuan so the trading
rate was 3.8 instead of 6.2. You know, Paul Krugman recommended a tax and
he`s hardly a conservative like me, he`s on the opposite end. So no, I
think there are remedies, this administration hasn`t been willing to listen
to them, and it`s really unfortunate because the minimum wage, you know, it
should bare some adjustment. The Republicans have been problematic in that
regard.

SCHULTZ: All right.

MORICI: But not $10.10 or $15.

SCHULTZ: Your response to that David Cay, could we do something with China
that would immediately affect wages in this country?

JOHNSON: This I would agree with Peter about. We`ve lost 2.8 million
manufacturing jobs to China and it is, we are completely mismanaging global
trade and we need to manage it. I just don`t see that as being politically
realistic.

You know, we had a minimum wage that in today`s dollars is $11 back in the
60s. We`re a much wealthier country they -- we can easily afford as a
country an $11 of $15 minimum wage brought in overtime. But the big
difference between us in other countries is we don`t have labor market
anymore. We got rid of -- for all practical purposes, unions in this
country and it is allowed employers to drive down the price of wages. The
price they pay for labor which is wages and that`s the fundamental problem.

We have this enormous imbalance. Wages are drifting downward in this
country except for the very top, and corporate profits are going up like an
atlas rocket.

SCHULTZ: Yes. Peter, what would a Republican led Congress mean for the
middle class workers in this country if they`re against the minimum wage?
I mean what would Mitch McConnell and John Boehner, if they had the
majority, what would they for jobs? And I know you`re talking about
drilling offshore.

Drilling off shores, that`s archaic thinking. No disrespect to you, but we
got a climate change issue going on here. The American people are in
denial.

OK, go ahead.

MORICI: We`re not solving the climate issue by outsourcing out production
of oils in Nigeria. We`re just shifting the environment problems around.
But would it -- and the Republican Congress would probably do is take a
hard look at Obamacare, they`re not going to repeal it because President
Obama would veto that and they wouldn`t be able to sustain it.

But you know, we spent 50 percent more on health care than the Germans do
but yet they get better outcomes. And I would suggest, if Ebola had
happens in a hospital in Frank (ph) it would have had a much better result
than a hospital on Dallas. We need to do something about health care cost
in terms of containing cost and adjusting Obamacare so it makes more sense.

SCHULTZ: The Republicans have out nothing on the table for health care
Peter.

MORICI: They`re going to have to if they`re in charge.

SCHULTZ: The Republicans have put nothing on the table for health care.

MORICI: They`re going to have to if they`re in charge.

SCHULTZ: OK. If they`re going to have to if they`re in charge, what
they`re going to do is get rid of what we`ve accomplished so far. But I
don`t know what Republicans would do...

JOHNSON: I don`t know -- what I hope they do. I hope...

SCHULTZ: Yes, go ahead.

JOHNSON: Ed, I hope that the Republicans would do is get rid of for-profit
hospitals. We used to have nonprofit hospitals and that hospital did a
lousy job in Texas is a for-profit hospital.

SCHULTZ: Yeah.

JOHNSON: We have all the wrong incentives in the health care system that`s
part of the reason our costs are so high.

SCHULTZ: Got to run gentlemen, David K. Johnson, Peter Morici, great to
having you with us tonight.

The new tactic one fast food chain is using to suppress worker`s rights.
Keep it there, we`ll be right back.

(COMMERCIAL BREAK)

SCHULTZ: And in Pretenders tonight, dangerous Dr. Keith Ablow, the Doctor
for Fox News had shown symptoms of Obama derangement syndrome for sometime
now. On Tuesday, Ablow joined radio host, John Gibson and proved it`s only
gotten worse when Ablow was asked why President Obama wouldn`t impose a
travel ban on flights from Africa, he responded with this.

(BEGIN AUDIO CLIP)

DR. KEITH ABLOW, PSYCHIATRIST: His affinities, his affiliations, are with
them, not us. That`s what people seem unwilling to accept, he`s their
leader.

JOHN GIBSON, FOX NEWS RADIO HOST: Is -- What do you think...

ABLOW: We don`t have a president.

GIBSON: We don`t have a president? We have somebody else`s president?

ABLOW: We don`t have a president who has the American people as his
primary interest...

(END AUDIO CLIP)

SCHULTZ: Over the past few weeks we`ve heard stories of health care
professionals bravely putting themselves on the front lines of this Ebola
outbreak. Dr. Ablow has instead shows him to lead the front lines of fear
mongering.

Ablow`s latest unhinge conspiracy theory falls directly in line with his
dog-whistle politics of the birther movement.

Ablow is the one who should be isolated instead the Doctor just signed a
new contract with Fox News. Good. If Ablow thinks, racists rhetoric is
the cure for this crisis, he can keep on pretending.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hello, Jimmy John`s?

UNIDENTIFIED MALE: Jimmy John`s here.

UNIDENTIFIED MALE: What took you so long?

UNIDENTIFIED MALE: Jimmy John`s freaky fast delivery.

(END VIDEO CLIP)

SCHULTZ: Welcome back to the Ed Show. This is the story for the folks who
take a shower after work and I mean it.

A class-action lawsuit reveals a dangerous new tactic fast food chains are
using to suppress worker`s rights. Jimmy John`s Sandwich Shop is a college
town sandwich chain with more than 2,000 locations and 50,000 employees
across the country. The chain is known for its freaky fast delivery. Well
they have faced numerous legal disputes with employees in recent years
including allegations of wage theft.

A proposed class-action lawsuit filed this summer against the sandwich
chain reveals workers are forced to sign a non-competition clause when they
are hired. Non-compete clauses are usually reserved for high level
employees with inside knowledge of company trade secrets. Jimmy John`s is
forcing even low wage sandwich makers and delivery drivers to sign a non-
compete contract.

It states in the clause, "During employment for a period of two years
after, he or she will have any interest of perform services for any
business which derives more than ten percent of its revenue from selling
submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches
and in which is located within three miles of Jimmy John`s.

You want to talk about workers suppression and worker rights, is this the
free market?

Joining me tonight, Jennifer Epps-Addison, Executive Director for Wisconsin
Jobs Now. Jennifer good to having you with us tonight. When you first
heard this story about what these fast food workers have to go to with
Jimmy John`s, what was your reaction?

JENNIFER EPPS-ADDISON, EXECUTIVE DIRECTOR, WISCONSIN JOBS NOW: Well, I was
shock that, totally ludicrous and ridiculous idea that you would force your
underpaid employees, employees who are already complaining about not having
enough voice on the job to sign a non-compete agreement that is -- as you
stated before, usually reserved for top level CEOs and executives that have
insight or knowledge and have bargaining power and negotiation power with
the company.

Clearly, their underpaid worker, their delivery drivers, and sandwich
matchmakers are not in that position and that`s why, over the last year and
a half, not only how those workers got on strike for a living wage but they
also been demanding union recognition so that they actually have a sit at
the table.

SCHULTZ: Now, just how big of an impact would this non-compete clause have
on workers in your estimation from working with this folks?

EPPS-ADDISON: Well it has a huge impact. First and foremost, we have to
realize that many of these workers are part-time workers despite wanting
full-time hours. The company will not give them those hours. So you`re
now telling underpaid workers that they can`t go out and get a second job
using the skills that they`re building within the industry.

Really what this is, is yet another way that these corporations are
dictating what economic opportunities their workers has, having a really
negative impact on their economic security. It`s just blatantly
outrageous.

SCHULTZ: Well it is. It`s not the free market. It`s worker suppression,
a different form of it. And what`s scary about this is that something like
this can become the industry standard. There might be another chain across
the street that says, "Well you know, Jimmy John`s is doing this and their
employees are signing it, why don`t our employees go ahead and sign it?
We`ll do the same thing."

And this would suppress the movement of workers especially in an area where
they don`t have the upward mobility to be able to move because of their
income to start with. Moving expenses aren`t cheap in this country. But I
also think Jennifer, there`s an intimidation factor here. What about that?

EPPS-ADDISON: I think it`s absolutely and intimidation factor. The
reality is I don`t think agreement like this would actually hold up in
court. As a lawyer, you look at the reasonable in this test and there`s no
reasonable person that believes that there is a trade secret that a
delivery driver is aware of simply by going out on the route every single
day.

But, workers don`t know that. And I think Jimmy John`s is relying on the
fact that if it comes down from cooperate, workers will find it and workers
won`t know that they have the other evidence or legal options. Unlike the
CEO, my guess is that most Jimmy John`s workers do not have a lawyer on
retainer to consult about this information.

It`s why it`s so important that these workers have a voice on their job.
It`s why they`re demanding union recognition because I guarantee you that
if these workers were allowed to unionize without the retaliation that
they`re fighting against right now, that this type of agreement would never
come to fruition.

SCHULTZ: That is the bottom line. If they have representation in a union
that this strong-arm tactic and confiscatory operating style would not be
able to exist in a work environment. Jennifer Epps-Addison, great to have
you with us. Keep up the great work you`re doing in Wisconsin. I
appreciate your time.

That`s the Ed Show. I`m Ed Schultz.

PoliticsNation 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.
END

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