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The Ed Show for Tuesday, December 30th, 2014

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Show: THE ED SHOW
Date: December 30, 2014
Guest: Jim McDermott, Kerry Walsh, Corey Hebert, Bob Shrum


(BEGIN VIDEO CLIP)

SEN. TED CRUZ, (R) TEXAS: The Obama economy is a disaster.

PRES. BARACK OBAMA, UNITED STATES OF AMERICA: There is no doubt that we
can enter into the New Year with renewed confidence.

UNIDENTIFIED MALE: The failures of the Obama economy.

OBAMA: Americas maybe significant strive where it counts.

UNIDENTIFIED MALE: Gas prices now at the lowest level in more than four
years.

SEN. MITCH MCCONNELL, (R-KY) MINORITY LEADER: And the Obama economy.

REP JOHN BOEHNER(R-OH) HOUSE SPEAKER: Where are the jobs?

UNIDENTIFIED FEMALE: A trend of strong job growth is putting America on
track.

UNIDENTIFIED MALE: In Obama economy under the Obama administration.

UNIDENTIFIED MALE: The Dow now officially topping 18,000.

UNIDENTIFIED MALE: In the Obama economy now. And we`re not going to let
people for get it.

(END VIDEO CLIP)

ED SCHULTZ, MSNBC HOST: Good to have you with us tonight. Folks thanks
for watching. Don`t you just love our archived tape that we always dig
out? You know, we`re starting tonight with what I think is the biggest
story of this year 2014. It`s the economy. And the reason why I say that
is because there has been so much effort put forward by the Republicans to
trash the economy to obstruct everything President Obama dream of doing
with this economy, we`re living in the Obama economy and the results are
astonishing.

Now, let`s go back for just a moment to March of 2009. When there was a
big discussion to the media about "Well, when is this going to be Obama
economy?" How about now? The Dow closed out at nearly 18,000 again today
-- Wall Street -- and this is been unbelievably year. It`s had record
breaking run this year.

$36.5 billion worth of stocks were bought last week alone in the United
States. Now think about that. The Republicans continually talk about
"Well, there`s not a whole lot of confidence out there", really? What --
give your number of billion of dollars of people buying into the market
that you think would be confident.

The economy is creating jobs faster than ever. 321,000 private sector jobs
were added in the month of November. We`ve seen 57 straight months of
private sector job growth and over 10 million jobs have been created since
the great recession.

The unemployment rate -- if you would said this that, "I think it`s going
to get below 6 percent", you`ve said that back in 2009 or `10 -- you would,
"No way." Well, it`s a 5.8 percent according to Bureau Labor Statistics
this day. President Obama know the strength of these numbers. He shared
his perspective in an interview on NPR.

(BEGIN VIDEO CLIP)

OBAMA: I`m obviously frustrated with the result of the midterm election.
I think we had a great record for members of Congress to run on. And I
don`t think we -- myself and the Democratic Party -- made as a good of a
case as we should have.

(END VIDEO CLIP)

SCHULTZ: The only problem with the President`s record is it the Democrats
just didn`t yelled loud enough come last November. Well, that`s crying
over spilled milk at this point. The President did inherit a financial
disaster from the last administration.

In March of 2009 we were losing 826,000 jobs that`s the number that we lost
in a single month. We were losing 26,000 jobs a day. Got that number?
Panic spread on Wall Street, the Dow Jones bottom down at 6,600 and you`ve
jump in and hang on. You`re doing a lot better today. Republicans of
course blame President Obama for the financial devastation.

(BEGIN VIDEO CLIP)

BOEHNER: They`re tired of settling for this new normal under the Obama
economy. And frankly they`re tired of asking the question "Where are the
jobs?"

CRUZ: Working class jobs, blue color jobs where people can earn a living
provide for their family. Those are the jobs that have been decimated
under the Obama economy.

UNIDENTIFIED FEMALE: What we need the President to do is to say the Obama
economy is not working.

UNIDENTIFIED MALE: I think people are going to conclude that the Obama
economy is not working.

UNIDENTIFIED MALE: Small business start up entrepreneurship remains at a
17 year low in the Obama economy.

MCCONNELL: In the Obama economy, we are facing a looming fiscal crisis
that some are called the most predictable in history.

(END VIDEO CLIP)

SCHULTZ: Well, Republicans said that Dodd-Frank, any kind of movement on
Wall Street would just tank the stat market. The record breaking numbers
have showed the opposite effect. In 2012 Republicans said repealing the
Bush tax cuts -- remember this -- would a big job killer.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That was money they were going to invest in creating a
job, or that was money they were going to spend into the economy, now the
governments going to take it.

BOEHNER: And want to talk about train wreck? You`re talking about a big
one.

UNIDENTIFIED MALE: You can four jobs and against the very people who
create the jobs.

MCCONNELL: Our friends on the other side are practicing what could best be
described as Thelma and Louise. economics. Let just march the whole
country right off the cliff.

UNIDENTIFIED MALE: But let`s extend where we are now as opposed to looking
a cliff in January that would cause real distress for the economy.

(END VIDEO CLIP)

SCHULTZ: We got more tape for you folks. Republicans are eating their
words. You see the Bush tax cuts after they expired, corporate profits
continued on though the roof -- record numbers. Unless of course let`s not
forget ObamaCare. Republicans said that this life saving law would also
kill a bunch of jobs.

(BEGIN VIDEO CLIP)

JOHN CORNYN (R), TEXAS: When ObamaCare was debated in Congress, we
screamed from rooftops that it just wouldn`t work. That it would be a job
killer.

CRUZ: ObamaCare is the biggest job killer in this country.

SEN. MICHELE BACHMANN, (R) MINNESOTA: Let`s repeal this failure before it
literally kills women, kills children, kills senior citizens. Let`s not do
that. Let`s love people.

MCCONNELL: There`s only one escape patch that will fully help those
trapped by this law and that`s full repeal.

BOEHNER: In my opinion ObamaCare is the biggest job killer we have in
America today.

(END VIDEO CLIP)

SCHULTZ: So what`s the fair commentary right here? Is it fair to say that
the Republican`s were kind of off base? That the Republicans were wrong of
is that too strong a word. The economy has added millions of private
sectors job since the president signed the Affordable Care Act. That is a
basic undeniable number.

Obama economic policies basically dug this country out of the debts of
financial collapse and we were on verge of collapse. The bottom-line
President Obama believed in American workers and the Republicans did not.
In 2012 the best candidate the Republican Party could put up wanted to let
the automobile industry go bankrupt, lets not forget not only did President
Obama save the automobile industry. He brought over $15 billion in profits
for tax payers.

(BEGIN VIDEO CLIP)

OBAMA: Today, our rescue of the auto industry is officially over. We`ve
now repaid the taxpayers every dime and more of what my administration
committed and the American auto industry is on track for its strongest year
since 2005. And we`ve created about 500,000 new jobs in auto industry
alone.

(END VIDEO CLIP)

SCHULTZ: So, how good are the numbers? I think they look pretty good.
Grover Norquist thinks there pretty good, in fact he wants credit. The
Antitax Conservative Law did Republicans spending cuts as the reason for
the strong recovery. Nice try. Norquist missed statistic 101 causation
doesn`t mean correlation.

The economy has surge in spite of the Republican mission to strangle
President Obama`s growth policies across the board. Economists agree
Stimulus Package -- remember that? That package really boosted the nation
big time. The housing market has rebounded, corporate profits through the
roof, stock market craziest can be, more people are signing up for
ObamaCare because it`s working.

And Republicans were and run around saying, "Drill, baby drill." Well,
guess what, we did that. We`ve been doing all kind of drill and I haven`t
heard the Republicans complain about the latest oil prices that are out
there. In fact it`s causing Putin our adversary a lot of problems.

President Obama`s economy broke records in 2014 and all Republicans have to
show for it is obstruction. So that`s why I think the economy is the
biggest story of 2014. What do we have to look forward to? Well, if we go
back in our archive and just look at the last couple of months. This is
what we have to look forward to. The Republicans and it`s all over talk
radio even here in the Midwest. Well, it`s those corporate tax rates.
We`re just paying too much rate we`ve got corporation are paying more taxes
than anybody else on face of the earth, really?

After all the right off and after they park a lot of their million of
dollars, billions of dollars off shore, the tax rates about 17 percent. Go
look at Mitt Romney`s retuned and then of course Keystone. At a time when
we were trying to do something about climate change we`re going to have two
years of denial coming up here now with him owning the House of Senate.
Keystone probably going to get through and what we`re going to do we`re
going to bring more oil to the world market which is going to bring more
economic instability amongst other countries. That`s the wrong move not to
mention what it`s going to do to the environment. And they want to do
regulate Wall Street some more. You see Dodd-Frank has been the big
problem with all of these.

Is it fair commentary to point out that the Republicans sound bite after
sound bite, issue after issue on economy? My Lord they haven`t right on
anything. Now, where we are going from here? I`ll tell you where we are
going from here.

Now, the things are going to reverse a little bit. You`re going to see the
Republicans come out and there going to come up with the jobs package and
of course the president says he really wants to work with Congress now. So
he`ll probably do a deal on a job package. And then they won`t take maybe
a year, maybe a year before we`re going to hear the narrative on the right
wing saying "This economy was tanking until we came in and got the House
and the Senate, we got this job package done."

That`s we`re seeing in 2015. We`re going to see a total reversal. We`re
going to see them taking credit for the economy that we`ve seen unfold in
front of out eyes in the last six years. Keep in mind. When a Republicans
over there for the Stimulus Package except three and one of him Arlen
Specter came over to the Democratic Party.

None of them were in favor of the automobile loan. They`ve love to call it
a bailout. Now it was a loan and it`s been paid back and we`ve profited
from it. They all wanted to say that the Bush tax cuts just had to
continue on. Well, we did that from 2002 to 2012. President Obama
campaign on a fact that -- sorry guys -- at the end of 2012 it`s over.
They all predicted it was job killer, what did we do? We haven`t lost
jobs. One single month since the Bush tax cuts expired.

We added two years on to it, after the 10 years sunset. So now what do
we`re about to do? We`re about to do another trade agreement that is going
to hurt the economy. The TPP is going to be a huge story for our economy
in 2015. And this is where the Democrats and some Republicans because of
sovereignty issues are going to hold the line. We have made extraordinary
progress, unbelievable progress in the last six years. Don`t throw it
under the bus just because there`s been power change in Washington, you
know, by the way I`m all for a job package and I`m all for saying no to the
TPP and I`m all for green energy. We all should be.

But then again, we`re going to be fighting climate for the next couple of
years because the Republicans are now in charge and they`re the deniers.

Get your cellphones out. I want to know what you think. Tonight`s
question, will President Obama ever get credit for saying the economy?

Text A for yes, text B for no to 67622. Drop a comment on our blog at
ed.msnbc.com and we`ve got the result to the poll later on in the show.

Joining me tonight Congressman Jim McDermott who sits on the Ways and Means
Committee. Congressman, always a pleasure, good to have you with us
tonight.

REP. JIM MCDERMOTT (D) WASHINGTON: Good to be here.

SCHULTZ: The -- you bet. Why did the Democrats -- let`s do a little
spilled milk conversation here. Let`s go back a little bit. Why did the
Democrats shy away from Obama`s strong economic record in 2014? That too
is a big story I think. The way that they won`t run on the record, what do
you think?

MCDERMOTT: Ed, I will never be able to understand that. Every fact that
you`ve given in the last 10 minutes has been out there for some period of
time and everybody could see that what Obama had done and he had push for
had actually been working and people simply were the propaganda that was
affecting the voters -- I guess affected some of the candidates to not run
on ObamaCare -- not run as a positive thing was terrible mistake in my
view. And when you look at the jobs numbers or the gross national product
or any of those figures that had gone up in the last six years, you`ve got
to say the President has brought us a million miles since 2008.

The Republicans are going to have a hell of a time this session on the one
hand keeping his number down. And on the other hand helping him do these
things that you`re talking abut with trade and job packages. We need
infrastructure, we need money into National Institute of Health, we need
money into National Science Foundation, we need money into a lot of places.
And what they`re going to do is implement the Sam Brownback plan. That is
cut all the taxes.

SCHULTZ: Yeah.

MCDERMOTT: . cut away the money so there`s nothing able, you know, have
nothing to work with. And Sam practically.

SCHULTZ: Yeah.

MCDERMOTT: . got beat this time and the Republicans are looking at that
same scenario for 2016 if they talk -- keep talking about cutting way all
the tax base. You have to have money.

SCHULTZ: They want to...

MCDERMOTT: That you`re going to build stuff.

SCHULTZ: They don`t want to fund anything. That`s really where they are,
they want to fund anything, they want to bare bones everything across the
board and privatize as much as they possibly can.

Actually, the Republicans ought to be behind closed doors high fiving one
another saying "Gosh, nobody is getting prosecuted from Wall Street. Look
us now, you know, by the way nobody`s going to trail because it torture and
look this economy. The guys give us everything we want. Now we`ve got the
power".

So what are your expectations with the Republicans controlling both Houses?
What this going to be like?

MCDERMOTT: Well, I think you`re going to see Paul Ryan in his glory days
trying here to roll out his presidential campaign in the form of tax cuts
and then promising people that it won`t affect anybody. That they`ll be
cuts for the business and then there won`t be have to be anybody taking out
of anything. I really think its impossible thing that they have before
them. And I`m really kind of curious to see how they spin the propaganda
of giving the money back to the businesses and then expecting the American
people to be able to go out and buy and make this.

SCHULTZ: Yeah.

MCDERMOTT: . consumer economy work. It just doesn`t work that way.

SCHULTZ: We don`t know who the Democratic nominee is going to be but, you
know, it`s looks like it`s Hillary unless the earth really shake something
different. But, it`s going to be I think hard for the Democrats if we have
just consistent growth the next couple of years to come out and say that
the economy isn`t doing what we`ve wanted to do. Obviously there`s going
to be a focus on the middle class. But there has been so much progress.
Is this going to help the next Democratic contender for the White House?
Your thoughts.

MCDERMOTT: Well, my thought is that as the numbers get better and better,
the people are feeling it now in spite of the propaganda that`s going
around that we still going to worry about it and facing that we`re going to
be like Greece in. People are talking about all these awful scenarios.
But as things gradually rise up, it is going to give the next Democratic
candidate a good basis to lift off of. The Republicans are going to try
and keep people seeing bad, bad, bad, bad when you have Democrat. And the
only thing that it will fix it is if we get a Republican who will make it
good, good, good that isn`t going to work.

SCHULTZ: Yeah.

MCDERMOTT: If the numbers keep coming up as they are. And I don`t see why
they won`t. The things are all running in our favor at this point. And I
don`t see any reason why it`s going to change. I think it`s going to be a
great time of setting up the next Democratic president to take this country
forward even further.

SCHULTZ: Congressman Jim McDermott Washington always a pleasure, great to
have you with us. Happy New Year, my friend. Thank you. I appreciate it.

Remember to answer tonight`s question there at the bottom of the screen.
Share your thoughts with us on Twitter @edshow, follow us on Twitter
@wegoted, @edshow, like us on Facebook. Thanks for all of that.

Coming up, new clues in the search for flight 8501.

Plus, he just became the third most powerful Republican in the House. Now
Steve Scalise under fire for his speech in the White supremacist group of
net. The story ahead stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TONY FERNANDES, AIRASSIA CEO: There is at least some closure as opposed to
not knowing what`s happened and holding out hope, et cetera. At least it
brings an end to it. And we thank the Indonesian government and the rescue
team in finding the plane quickly and trying to evacuate everything as
quickly as possible and then we moved to finding out what went wrong on
that tragic day.

(END VIDEO CLIP)

SCHULTZ: Welcome back to the ED Show and thanks for watching tonight. It
is a sad story and it`s just after 5:00 A.M. local time in Indonesia and a
fourth day of what is still being called a search and rescue mission is set
to begin in the Java City overnight. And the Indonesian officials
confirmed debris found on the Karimata Strait is from AirAsia flight 8501.

The Indonesian Search and Rescue Agency tells NBC news they`ve located six
bodies and have recovered three of them. Search has also found a large
dark shadow under the water off the coast of Borneo several miles from the
planes last known location. Indonesian`s search teams are being aided by
naval and air teams from Singapore where the plane was scheduled to land
Sunday morning.

U.S. military is sending a navy Poseidon aircraft and two dive teams to
assist in recovery efforts. A navy destroyer is already on the scene and a
second ship in the region will join by New Year`s Day.

On the ground in Surabaya, families definitely are grieving. AirAsia has
offered families at airport access to counseling service. The airline has
also scheduled a flight for family members that will fly over the search
areas so that they can pray and pay their respects.

Joining me tonight Kerry Walsh, he is a Salvage Master at Global Diving &
Salvage. Great to have you with us tonight Kerry under these conditions.
It`s very sad. No doubt about it. You`ve been down this road before.
What challenges in the part of the world are facing those who are involved
in the recovery effort?

KERRY WALSH, GLOBAL DIVING & SALVAGE MASTER: Well, I think the number one
challenge is going to be weather. The place is notoriously -- it`s
shallow. Weather`s going to be definitely be a factor. Sea conditions are
going to be impacting -- already are impacting the operations to recovery
efforts. And as they move forward into identifying the debris field and
surveying up the sonar, getting good map of it to be able to do that I
think pretty effectively from the surface. But once they start diving the
weather conditions are going to definitely be a factor.

SCHULTZ: What can the wreckage tell us about the Flight 8501`s final
moment as you piece this together?

WALSH: Well, I`m not an expert in that field but I think that if they
actually have a large shadow, it would tell me that they came down and
stayed in a relatively large piece of airplane. So I think that the
aviation experts are going to be the guys to go to for that. But if it`s a
large piece of debris and fuse a largest intact this is going to make the
recovery efforts for the black box and boxes and the victims probably a lot
easier to accomplish.

SCHULTZ: OK. There`s debris so the black boxes are somewhere and what are
your professional experience of the recovery effort here. What are the
chances of us -- those researchers and those rescue workers getting the
black box as in possession.

WALSH: I think that`s good. It`s excellent. I think that let`s just take
the shadow out of the picture for a bit. Once they hindcast from where
they found the debris on the surface, the hindcast back to the impact
location using set and drift and current wind conditions. They`ll be
searching (ph) the sonar and they`ll find the debris field with sonar and
they`ll identify all the pieces to have a very good 3dimensional image of
what`s on bottom.

And the black boxes are typically stored and located in the stern of the
aircraft near the tail. You know that`s -- if it`s in the larger pieces
they expect, they will be very easy to recover those.

SCHULTZ: So it`s not a needle in a haystack as it might it seem?

WALSH: No. It`s not like the Malaysian flight by any stretch. It`s a
shallow water, it`s -- they know where the debris was located very quickly
after the plain went missing. So I think they`re going to be able to
narrow down the search area very quickly.

They`ve already gotten military vessels equipped with sonar on sight. I`m
sure that they`re already surveying for the debris field.

SCHULTZ: From your experience, Kerry, what the debris field -- the
diameter of it -- what do you think it is? How many miles do you think
this would stretch seeing that it came from the sky at least last reported
just 30,000 plus feet.

WALSH: I think it`s going to be probably pretty small. Again, it`s
shallow water so you`re not going to have a lot of time for the debris to
get from the surface to the sea floor that would spread it. The current --
water currents would spread the debris so I think it`s going to be a pretty
tight field. I really don`t know it but it all depends on what -- how the
plain impacted the water and what happened to it on impact but the sonar
search is going to tell us that story very quickly.

UNIDENTIFIED MALE: OK. Kerry Walsh, great to have you with us tonight. I
appreciate your time tonight. Salvage master and global diving salvage in
Portland, Oregon with us here on the ED Show.

Still to come, here on the ED Show tonight, David Duke speaks out about the
scandal surrounding the new House majority will, Rapid Response Panel
weighs in. And later, in a two minute drill, Jim Harbaugh inch the big
deal. What does it mean for major colleges going after new coaches
considering there`s a playoff?

Next, your questions Ask Ed Livecoming over the ED Show we`ll be right
back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Edge Show. Appreciate all your questions
here on our Ask Ed Live segment as we close our 2014 the next couple of
days.

Our first question is from Steve. What will it take to get Republicans to
believe in climate change? Here`s what I think. I think the polar ice cap
could totally melt and they`d still be in denial. So that`s kind of a toll
order, maybe impossible.

Our next question is from Sam -- wants to know, who is your all time
favorite college football player? He wore number 88. Played tight-end for
Moorhead State. His name is Jeff Tesch.

He`s now the head football coach at Bemidji State University. I like him
because he led the nation he received in and I led the nation in passing.

Stick around, Rapid Response Panel is next. I couldn`t have done it
without Hammer (ph) I`d pay you a damn.

KATE ROGERS, MARKET WRAP: I`m Kate Rogers with your MSNBC Market Wrap.
Stocks drip lower on light volume today. The Dow shed 55 points, the S&P
falls 10 and the Nasdaq ended down 29.

A new report shows consumers are feeling more confident this month thanks
to an improving job picture. However, December`s increase can be low
estimates. And home prices rose in many metropolitan areas in October
according to S&P/Case-Shiller.

Year over year gains topped 4 percent. Their rate of growth was slower
than it has in previous months. That`s it from MSNBC, your first in
business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show, thanks for watching tonight.
Republicans have spent millions on re-branding in an effort to win over
minority voters. Now just a week before the start of a new Congress, the
GOP faces a test of just how genuine those efforts are.

On Monday, Congressman Steve Scalise admitted to addressing a group of
White Supremacists and Neo-Nazis way back when he was a Louisiana State
Legislator. Now, Scalise currently is the third ranking Repulican on the
House of Representatives.

Scalise`s office, well, they did confirm that he spoke before group known
as the European-American Unity and Rights Organization or EURO known as,
back in 2002.

EURO was founded by none rather than David Duke, a former Grand Wizard of
the Ku Klux Klan who ran for governor in 1991 in Louisiana. EURO was
recognized by the Southern Poverty Law Center as a hate group, plain and
simple, which why then explains why Scalise is now calling the whole thing
just a big mistake and he regrets it all.

Scalise told the Times-Picayune Newspaper down in Louisiana, is that "I
don`t know who all of these groups were and I detest any kind of hate
group. For anyone to suggest that I was involved with a group like that is
insulting and ludicrous." Not entirely ludicrous. If you look back on his
voting record, you see in 1999, Scalise was one of just three Louisiana
State Representatives who voted against making Mark Luther King`s birthday
a state holiday.

In 2004, Scalise was just one of six state representatives who voted
against a similar bill. The King Holiday, we all knew, was going to get
approved, yet Scalise made a point of voting against it anyway. Those
votes, I believe, take on a new meaning today. In the state of Louisiana,
ask yourself the question, "Who doesn`t know David Duke and what he`s all
about?" Give me a break.

David Duke was first elected to office in 1989. If Steve Scalise is that
ignorant to his own state politics, he shouldn`t be representing Louisiana
in any way, shape, or form.

Joining us here tonight on a rapid response panel, Dr. Corey Hebert,
professor of LSU Health Science Center and also with us tonight, Mark Potok
who is a senior fellow at the Southern Poverty Law Center. Mr. Potok, you
first tonight. Gentlemen, great to have you with us.

MARK POTOK, SOUTHERN POVERTY LAW CENTER SENIOR FELLOW: Thanks to you.
Pleasure.

SCHULTZ: You know, I have to go back, I have to go back to 2002 when Trent
Lott was honoring then, who is now deceased, Strom Thurmond, the senator
from South Carolina and Trent Lott said, "You know, if we had voted for
Strom Thurmond, we wouldn`t have all these sort of problems." That of
course created a big firestorm, Trent Lott had to live as the Senate
Minority leader. So what`s different today? I mean it`s known who he
spoke to. Mark, do you believe that Scalise`s claims that he didn`t know
about this group are genuine? Your thoughts.

POTOK: I just don`t think it`s possible. You know, the fact is that
Scalise is a Louisiana politician with aspiring national aspirations at
the time and he simply have to know who Duke was. Duke had made
international headlines, running first for senate and then for governor of
Louisiana, 1991 and actually came perilously close to winning, actually won
the majority of White votes.

So both Duke and his group, EURO, were very well known. EURO was formed
two years before Scalise attended this meeting. And you know, it is worth
remembering that at that time, David Duke was the best known White
supremacist in the world. So.

SCHULTZ: Yeah.

POTOK: . he got enormous attention and it`s simply not possible, it seems
to me that Scalise did not know who Duke and the group were.

SCHULTZ: And so, Scalise wants the American public to believe that he
didn`t know about the group and he didn`t have anything to do with them and
he has a small step at the time that`s why he didn`t research, he didn`t
know exactly, you know. What politician doesn`t know what group he`s
talking to? I mean this is amazing. Dr. Hebert, you`ve had your own
experience with Scalise. Do you believe the story?

COREY HEBERT, LSU HEALTH SCIENCES CENTER: Absolutely not. Look, this is
not about racism. Look, Scalise knew, whether he`s a racist or not, it
doesn`t even matter. He wanted vote at all costs. He`s a politician and
it is really more about a divided Republican party. You got the alter
conservatives and you got the conservatives.

We know that John Boehner -- they only need 30 votes to oust John Boehner
and then this comes out. Boom, sounds a little fishy. There`s two
factions of the Republican party we know, and was supposed to deal with
them both. People call them the lesser of two evils that you have to pick.
I`ll call them the evil of two lessers.

I mean I actually testified before Congress with Steve Scalise`s
subcommittee on the use of FEMA trailers and Steve Scalise is -- he was an
OK-guy. The issue is not about the fact that he went, you know, to this
David Duke, rally for like (inaudible) term because that`s basically what
it is. What it`s about.

SCHULTZ: Yeah.

HEBERT: . is that with the Sony issue coming on, we don`t this hacking,
you`d be surprised at all of the stuffs that will come out when we start
delving into our politician`s pockets and their e-mails.

SCHULTZ: All right. Mark Potok, does Southern Poverty Law Center monitor
groups like EURO, what kind of activities has this group been involved in
in the last 20 years?

POTOK: Well, the truth is, it hasn`t been involved in a whole lot. Really
it is simply Duke`s latest vehicle or earlier he had been with the knights
of the Ku Klux Klan, he then created the National Association for the
Advancement of White people. And EURO was essentially his baby. But for a
time, in the early 2000, it was really a very important group in the --
among its activist, were really the leading White supremacist in the United
States.

In recent years though, it`s become nothing but a kind of a paper tiger. I
mean it really is essentially a device that is used to sell Duke`s Klux and
he`s writing. And that`s really about what they do today.

SCHULTZ: Well, David Duke is jumping on the headlines. In fact he is
threatening those in Congress in an interview with Fuzion, he claims that
Scalise isn`t the only politico he`s met with and had association with and
warn Republican saying this, "If Scalise is going to be crucified, if
Republicans want to throw Scalise to the woods, then a lot of them better
look over their shoulders." So in other words, he`s saying he`s going to
identify those who he`s had associations with in the past which I would
think that most politicians wouldn`t want anything to do with.

HEBERT: Right.

SCHULTZ: So Boehner comes out today and he releases a statement, claims
that Scalise made an error in judgment and called him a man of high
integrity and good character. Dr. Hebert, what do you make of that
statement in the position of the speaker?

HEBERT: Well, I tell you what, I have actually met David Duke on many
occasions and he`s not the kind of guy that just lets people come into his
little fray and doesn`t like the way that they do business or their
politics. So, you know, John Boehner is basically out there, trying to
play two sides of the coin, trying to salvage his party, but the reality
is, Steve Scalise went to that rally and Steve Scalise knows that he made a
really big mistake. And the people of Louisiana which I am one of them, we
don`t take any presents when it comes to making sure that people that do
that type of thing. That they need to be penalized and I think he will be.

SCHULTZ: Well, it sounds like, obviously Boehner standing behind him, so
is he going to survive this, Mark Potok? I mean, as I recited back in
2002, Trent Lott made a comment about Strom Thurmond, if we had voted for
Strom back then, we wouldn`t have all these other problems. It seems to me
that speaking in front of this hate group is certainly paralleling those
kind of activities. Is he going to survive this?

POTOK: Well, it`s an interesting question. You know, the fact is that
before Lott got into that trouble in 2002 for his comments at Thurmond`s
birthday party, in 1998, Trent Lott was found, who had been associating
with, endorsing, giving talks to another White supremacist group, called
the Council Conservative Citizens.

So in his case, he survived the first time although after a week, a very
ugly national press, but when he made his comments four years later about
Thurmond, that was it. Now, you know, whether or not Scalise is able to
survive this time, I think this very much opened the question. It seems to
me that in Louisiana, certainly the Republican Party is very much rushing
to his side.

What`s happening nationally is more of an error, it seems to me. It`s true
obviously that Boehner is supporting him but I assure that we`re not going
to see any Republican presidential candidates endorsing or standing behind
Scalise.

SCHULTZ: All right. Southern Poverty Law Center, Mark Potok with us
tonight, Dr. Corey Hebert, I appreciate your time as well. Thank you.
Coming up.

Party like it`s 1992. Today, we are closer than ever to another Bush-
Clinton presidential match up. Is America ready? Stay with us, we`ll be
right back.

(COMMERCIAL BREAK)

SCHULTZ: And tonight, Two-Minute Drill, interesting story, who says he can
never go home? Oh yeah, he can go home for the money.

San Francisco 49ers Head Coach Jim Harbaugh leaving the NFL, heading back
to his alma mater University of Michigan press conference today. Now, I
think that this could be a new trend, NFL coaches, high-profiled coaches
who got a lot of exposure, ending up going back into the college ranks
because of the new playoffs structure that college footballers come up
with.

Money had to be a motivating factor for Harbaugh but he says, there`s more
to the story. This is what he said in the media today.

(BEGIN VIDEO CLIP)

JIM HARBAUGH, FMR. SAN FRANCISCO 49ERS HEAD COACH: In my first team
meeting, I was 10 minutes late. Two, the first team meeting, Coach
Schembechler told me that I would never play a single down at the
University of Michigan my entire career. And then now, 2014, to come back
as a football coach at the University of Michigan, I have to tell you that
I have thought about that, dreamed about that since the time I was a young
lad.

(END VIDEO CLIP)

SCHULTZ: Hey, it`s a great dream to fulfill. No doubt about it but I also
think that both Schembechler would`ve never thought University of Michigan
was going to be paying the $8 million a year to coach its football program.
Holy smokes. How do you turn that down? Keep it right here. We`re back
with more on the ED Show after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, FMR. PRESIDENT UNITED STATES OF AMERICA: There`s an old
saying in Tennessee -- I know it`s in Texas, probably in Tennessee that
says, "Fool me once, shame on you. And fool me, you can`t get fooled
again."

(END VIDEO CLIP)

SCHULTZ: Oh, yes one of the old time classics. Welcome back to the ED
Show. Thanks for watching. Tonight this is the story about the folks who
take a shower after work. Watch out. All it took was two words to get the
Republican party all fired up about the possibility of putting another Bush
in the White House.

It was just a couple of weeks ago, former Florida Governor Jeb Bush posted
on Facebook saying that he will actively explore a 2016 run, a new
nationwide CNN ORC poll shows 23 percent of Republican surveyed support of
Bush run. Jeb Bush is 10 points ahead of the closest competitor which
would be New Jersey Governor Chris Christie in a 13 percent.

On the Democratic side, former Secretary of the State Hillary Clinton is
still far in a way the favorite. If she runs, she has a support of two
thirds of Democrats poll. Massachusetts Senator Elizabeth Warren who says
she`s not running comes at a distance second at 9percent and there you see
Joe Biden at 8 percent. 2016 could be a flashback year in American
politics. Let`s take it back to 1992. A Bush/Clinton buying for the White
House.

Joining me tonight Bob Shrum Professor of Politics at USC in Democratic
strategist, Bob always a pleasure, good to have you with us tonight. We
had just go back and roll the old highlight tape. They probably could be
saying the same stuff. Who knows? Let`s talk about Jeb Bush for a moment.
Is this a good start for him? I mean, he needs just two weeks at his on
top of the pack about double digits. What are you making of it?

BOB SHRUM, PROFESSOR OF POLITICS AT USC: Well, look his lead is not nearly
has big as Hillary Clinton`s lead and those numbers you just showed,
because even in GOP the Bush legacy is not unmixed blessing. The
establishments Republicans have decided there for Jeb. They think that
Christie`s too damage, Paul Ryan is too uncertain, these Midwestern
governors are too remote and they`re absolutely convinced that the
conservative insurgence can`t possibly win a general election.

The establishment usually gets its way into Republican Party from Bush one
in 1988 to Romney in 2012 although it`s gotten tougher and tougher. I mean
Rick Santorum of all people manage to stay the course through the primaries
in 2012. So there some chance.

SCHULTZ: Yeah.

SHRUM: . that you would get a conservative activist who could come in,
take the nomination away from the establishment choice. Although that
conservative field is very divided, very much of odds even on issues.
Think Rand Paul for example and Ted Cruz on national security. So if
history any guided I think we`re going to have back to future election.

SCHULTZ: Yeah, well, it sure sound likes it. But the question now moving
forward is Bush going to be the uniter that has bother said he was. I
mean, how strong is the faction on the right wing would they accept the
politically moderate Jeb Bush who to me it seems more like the Bob Dole
kind of Republican.

SHRUM: Well, actually very conservative. I mean his was very conservative
governor of Florida. He looks comparatively moderate because of the nature
of this field. He for example favors immigration reform which would help
in general election. He can compete for Hispanic votes. But that will
hurt him in the primaries.

In the end of the day if he starts to win, these Republicans I think are
desperate to take back the White House. These Republicans primary voters -
- so they`ve swallow hard, they`d accept him just the way they accepted
Mitt Romney.

SCHULTZ: Yeah. Well, Bush 43 appeared on CNN earlier this month had to
say about his brother. Listen to this.

(BEGIN VIDEO CLIP)

BUSH: He knows I want him to run. If I need to reiterate it, I will.
Run, Jeb. I think he`d be a great president.

CANDY CROWLEY, CNN HOST: You`ve often referred to Bill Clinton and you
talk about his relationship with your father and how it developed, and your
mother as well, and he`s your brother from another mother. What does that
make Hillary Clinton to the Bush family?

BUSH: My sister-in-law.

CROWLEY: DO you think that your brother could run against your sister-in-
law?

BUSH: Yeah, and I think he`d beat her.

(END VIDEO CLIP)

SCHULTZ: See now that tells me this is going to be an entertaining type
situation when it comes to politics. People are smiling, people having fun
with it. What kind of campaign do you think and how rough and tumble would
Jeb Bush get to get the White House? I guess that`s the point I`m trying
to get to. I mean is Jeb Bush going to do what ever it takes to there? Is
he that kind of guy?

SHRUM: Well, he`s father certainly did given the nature of campaign he run
against Michael Dukakis. He`s brother certainly did given what happen in
2000 even after the election in Florida. I think Jeb Bush will do whatever
it takes. I think he`ll be a very tough candidate in a general election
against Hillary Clinton.

On the other hand, I think Hillary Clinton is demonstrated that she can be
pretty tough too. We all think about her losing in 2008, losing that
nomination. We forgot how good she got in the second half of that primary
period, how effectively she fought back. At that point mathematically she
couldn`t win the nomination. But she was a very different kind of
candidate than the centralize (ph), carefully brief, very causes candidate
who would announce in 2007. So I think she`d be very tough. I think it
would be a terrific race. But I got to tell you I think the sister-in-law
would beat the brother.

SCHULTZ: You take President Obama out of the equation. You got to go back
to what 1980? There`s been a Bush or a Clinton either president or vice
president since then.

SHRUM: They did.

SCHULTZ: I wonder how Americans are going to response -- I wonder how
American would response to that? We will (inaudible).

SHRUM: Well, the history would appear to indicate that they don`t mind. I
mean, from 1980 on almost every election there`s been a Bush. I think
there`s going to be a Bush.

SCHULTZ: Yeah.

SHRUM: I think he`s going to come in second. I think he`s going to lose to
Hillary.

SCHULTZ: All right, Bob Shrum, always great to visit.

That`s "the Ed Show." I`m Ed Schultz. "Politics Nation" with Reverend Al
Sharpton starts right now.

Good evening, Rev.


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

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