THE ED SHOW
July 22, 2014
Guest: Ernest Scheyder, Byron Dorgan, Barbara Boxer, Lee Gaddies, Wendell
Anthony, Ruth Conniff
ED SCHULTZ, MSNBC HOST: Good evening Americans and welcome to THE ED SHOW.
Live from New York, I`m ready to go. Let`s get to work.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Beneath these streets lies a hundred billions of oil.
UNIDENTIFIED MALE: Black gold
UNIDENTIFIED FEMALE: North Dakota`s oil boom.
UNIDENTIFIED MALE: We`re going to be the richest state per capita.
UNIDENTIFIED MALE: One of the biggest oil booms in American history.
UNIDENTIFIED MALE: We have an endless amount of money.
UNIDENTIFIED MALE: There`s a wild wild west.
UNIDENTIFIED MALE: I will not sacrifice my family. I will not sacrifice
(END VIDEO CLIP)
SCHULTZ: Good to have you with us tonight folks. Thanks for watching.
The first person I ever heard say, "Elections have consequences". I was
doing a radio interview with Senator Barbara Boxer from California back in
2004. And it was just before the Bush carry election. And of course she
was concerned about Bush being reelected -- weren`t we all?
And she said, you know, elections have consequences. And then of course
the consequences are -- that this man put a couple of extremist on the
Supreme Court, and now it plays all the way down to the local level. In
fact today, we say two courts rolled differently on the Affordable Care
Act, how could that be?
So, now we fast forward to the Citizens United, as we have seen this
conservative Supreme Court changed the landscape of elections in this
country. And the button line is, is that these guys -- some ladies, have
said that it`s OK to throw as much money at an elections as you want if
you`re corporation. Just have at it.
So, this has filtered down from big corporations to the most -- what some
might call nationally the most insignificant racist in the country, North
Dakota? Tonight we`re going to show you how big oil is taking over small
racist in America. Drill baby, drill. They might even rename the State
You see the State of North Dakota is the midst of a massive oil boom. A
lot of the country has heard about it, but do you really know what kind of
boom it is? You can see the natural gas flares from space, that`s right.
Minneapolis got the lights turn on, so does Chicago and Denver -- what`s
that? That`s Williston, North Dakota out in the middle of damn near
And that part of the country in March of this year 2014, over 30 million
barrels of crude oil were pumped out of the ground. It`s a record, a
record month for oil production. The record month means what? Massive
profits for the oil companies. And there are 270 oil companies doing
business in the State of North Dakota.
This isn`t cutting it for the oil tycoons, oh no, no, no. You see, they
want more. The oil industry wants to drill 35,000 new wells in the state
of North Dakota over the 15 years. Break it down, that`s 2,333 wells a
year. That`s a whole lot of drilling, and that`s a hell of a lot of
fracking. In the State of North Dakota, there are only three people who
can stand in the way of these new wells.
That`s right, they have a thing up there on the prairie called the North
Dakota Industrial Commission. The commission is made up of the Republican
Governor Jack Dalrymple, the Republican Attorney General Wayne Stenehjem,
and the Republican Ag. Commissioner Doug Goehring.
Now these group of Republicans -- and I would venture that they`re not hard
righties, but they know where the money is. They`re responsible for
issuing all of the drilling permits. Oh, you`re starting to put together
now huh? You see, big oil is having no problem getting permits from these
guys. Drill baby, drill.
Meanwhile, there is one Democrat in North Dakota who favors limiting the
permits and is asking the question, "What the heck is going on here?" His
name is Ryan Taylor, the Democrats believe in this guy. He`s running of
the North Dakota Agricultural Commissioner`s position, and he`s got a
pretty good shot at winning.
This guy is a forth generation North Dakota family rancher, business man,
and former State Senator.
He`s a vibrant guy, he believes in the State, he`s a land owner advocate.
Taylor knows, he needs to balance the drilling and the regulation to
protect the State`s agricultural environment and environment totally. You
see, Taylor recently stated North Dakota needs to focus on more than just
(BEGIN VIDEO CLIP)
RYAN TAYLOR, DEMOCRATIC CANDIDATE FOR NORTH DAKOTA AGRICULTURE
COMMISSIONER: There is a connection between oil and agriculture. And they
can travel (ph), attract of success together. Or they collide like the
soybeans and the crude oil, just last to hear at castle.
When a livestock sale barn has torn down and make room for oil
infrastructure in Minot (ph). It`s a hardship for ranchers. With better
management, more thoughtful planning, our two top industries can coexist
Without better management and a free for all, boom is going to agriculture
and the industries that were there before the boom begin.
(END VIDEO CLIP)
SCHULTZ: Tyler`s opponent is current North Dakota Ag. Commissioner Doug
Goehring. Now, the race is very close, but Goehring has one thing on his
side, big oil and a lot more money. Now, you might think, a lot more
money? Goehring has raised $87,000 more than Tyler. Now, nationally that
may not seem like a whole lot sitting here broadcasting from New York City.
Only 87 grand? Believe me, in a State of just over 700,000 people, that`s
a lot of money.
But in North Dakota, you can count on $87,000 buying a whole lot of radio
time and it`s huge. Goehring has received money from at least 10 oil
companies and their executives. There`s not doubt the oil companies are
behind this guy because he`ll rubber stamp the permits. With rubber stamps
Just today, hazardous materials used in oil drilling cough fire in
Williston, North Dakota. 500 foot flames are reported, and the National
Guard was even dispatched to the area. The fire could take days to burn
out. Just part of the business, right? Luckily no one was killed.
Meanwhile, the lack of regulation is literally killing people in North
Dakota and environment, that`s right, killing people. A new study finds
that oil workers in that State are being killed at five times the national
rate. Fatalities in the job in North Dakota more than doubled from 2007 to
2012, rising from 25 to 65 deaths a year. And unfortunately news reports
of spills are common place in the State as well.
In 2013, North Dakota recorded a 139 pipeline leaks, but there were also
291 other spills. Plus, 300 oil spills went unreported in the State over
the past two years. If there was ever a time for more regulations or at
least for somebody to step up and say, what are we doing and are we going
to drill everywhere and issue permits everywhere? It`s probably now.
Ryan Taylor has plans to make it happen. He`s put forward a specific list
of new regulations including using flow meters to oil -- monitor leaks. It
should be no surprising the oil industry and his opponent are opposed to
any monitoring of leaks in that system. Some locals in North Dakota say
the oil companies want to drill in Theodore Roosevelt National Park.
You see, the park covers a 110 square miles of pristine grasslands in the
Badlands. Its beautiful country, it`s unspoiled. But it might not be.
Teddy Roosevelt loves that part of the country. He was in love with North
Dakota back in the late 1880s. And Roosevelt became president he greatly
expanded the national park system and put preserving the environment on his
I wonder what the former Republican President would think about his cohorts
today in the Republican Party in their view on the environment. Where
would Teddy Roosevelt stand on climate change? Let`s focus back on the Ag.
Commissioner`s race for just a moment, you see Teddy Roosevelt was against
corporations squashing out the little guy. The little guy could get
squashed out, meaning the landowners.
Now everybody wants drilling everywhere in that part of the country. But
if big oil can come in and if they can throw a few extra bucks at the Ag.
Commissioner`s race, they can definitely seal up the industrial commission
of the governor, the Attorney General, and Ag. Commissioner. And they`ll
be able to get the permits they want, and they`ll reach their goal of
35,000 new oil wells drilled the next 15 years.
You see, Citizens United has brought us down to the prairie where there`s
very few folks but a hell of a lot of ramifications if these folks get
Get your cell phones out. I want to know what you think. Tonight`s
question, would Teddy Roosevelt be ashamed of today`s Republican Party?
Text A for Yes, text B for No to 67622. You can always go to our blog at
Ed.msnbc.com. We`ll bring in the results later on in the show.
For more, let me bring in Reuters Oil and Gas Correspondent Ernest
Scheyder. Mr. Scheyder, good to have you with us tonight.
ERNEST SCHEYDER, REUTERS OIL & GAS CORRESPONDENT: Good to be here Ed.
SCHULTZ: How important is this race of the oil industry, the industry of
oil where you got 270 companies doing business in North Dakota. They want
a stamp of approval to go wherever they want to go, even the National Park
Lands. How important is this race?
SCHEYDER: Well, the Agricultural Commissioner is one of three votes on the
industrial commission. And if Ryan Taylor were elected, yes, he could be
outvoted by the other two. But that being said, he would give -- I believe
pupae (ph), if you will to the those in the State who feel like -- perhaps
their concerns are loosing out to the oil and natural industry right now.
SCHULTZ: Is there too much drilling in North Dakota? What -- when you
were there what kind of polls do you get at the people?
SCHEYDER: I think the people are proud that they`re helping to support
North American energy independence. You know, they see us taking foreign
sources of crude and they`re not a fan of that. So they say, if we produce
it here, we like that. But the State is an agricultural, you know,
bellwether so to speak.
You know, this produces tons of the wheat and corn we use in the State. In
fact just recently, the oil industry finally surpassed the economic impact
from the Ag. Industry. So, that shows you how big Ag. is been for years
and years. But these people are saying, the more we drill, what`s going to
be left after leaves in 50 years? We want our farm land to remain the
same, and that the concern you see.
SCHULTZ: So, what kind of regulations do some of the North Dakota
residents want? And what Ryan Taylor is taking about, is this viewed as
SCHEYDER: Well, what you`re seeing in an interesting tension in the
Republican Party in the State of North Dakota right now. You know,
typically we think of, you know, middle of America, Republicans as very
pro-land rights, pro-oil drilling. But you`re starting to see those teeth
(ph) were tearing at the scenes right now in North Dakota.
You have the land owners that are saying, "Hey, wait a minute, you know, I
do support the oil industry but, you know, I need my land to be protected."
Now if you want to build a pipeline through it, you got to properly reclaim
the land. You got to make sure that there`s no salt water spills that
leave my land foul (ph) for generations.
Then you`ve also got people that would say, "No, we want to pump oil", you
know, drill baby, drill. So, there`s that tension that`s slowly pulling at
it self. And it should be interesting to see where it goes.
SCHULTZ: OK, good to have you with us tonight. I appreciate your time
Let`s turn now to Former North Dakota Senator Byron Dorgan. Senator, good
to have you with us tonight. You know this subject well, yes sir. Does
North Dakota need more regulation the way it`s all unfolding?
FMR. SEN. BYRON DORGAN, (D) NORTH DAKOTA: Well, it`s interesting, you
know, you talking about Ryan Taylor. I know Ryan very well and a friend of
Ryan`s and he`s a great candidate. And unfortunately he`s been
mischaracterized as not supporting energy development.
He really does, but he also thinks there`s needs to be thoughtful and
effective regulatory oversight which is just the smart thing to do. So, I
hope Ryan wins that race, he`s not Anti-energy development. And by the
way, neither am I.
As you know, I have always felt that the production of oil and gas in this
country is a positive and we`re importing less and dependent less on
foreign counties. So, that`s good, but you always have to have effective
regulatory oversight when you do these things.
SCHULTZ: Senator, do you think your State needs 35,000 new wells over the
next 15 years?
DORGAN: That`s a lot of wells, a lot of new wells, but -- a lot of wells.
I don`t know how many drilling permits should be allowed. Can I just go
from the local to the national for a moment and -- you put your finger on
something really important. And that is, the Citizens United case, and
it`s not just North Dakota, it`s all across these country.
This unbelievable avalanche of money. Some of it coming from unidentified
sources in terms of millions of dollars. Yesterday by the way, there was
an article on the paper that said, Sheldon Adelson the casino fellow from
Nevada is thinking about $100 million that he`ll put into senate races
across the country. I mean this is going to -- this is ruining the
political system in our country.
SCHULTZ: Well, this race in North Dakota for the Ag. Commissioner`s --
rather tight right now. And at the end of the day, it looks like Doug
Goehring is going to run away with funding of it all, because of the oil
support. You`re take on that?
DORGAN: Well, I don`t -- again, I don`t know the details of the fund
raising in the races out there, I just don`t. But I know, Ryan Taylor and
know what he stands for. And if there are people who are believing that he
stands for shutting down energy development, they`re just wrong.
This guy is a smart -- by the way, he`s been a Former State Senator, he`s
smart, effective, thoughtful, and honest. And he liked there to be some
regulatory oversight that is smart of the State`s future.
SCHULTZ: I mean, what about the fracking that`s taking place in that part
of the country? Do you believe that the oil industry has made the case
that residents and people in that region have nothing to worry about?
DORGAN: Well, listen. We have, you know, I`ve studies energy and I worked
on energy a lot, we`ve fracking for some 50 years in this country. This is
the first time that we`ve ever combined horizontal drilling with fracking.
But with proper well boring and proper regulatory oversight, there is not a
problem with fracking.
I know some feel very strongly the other way. But, my view is, we`ve been
doing it for a long, long time and if you have proper regulatory oversight,
it`s going to be fine.
SCHULTZ: So, does there need to be more regulatory oversight if they`re
going to do 35,000 wells in the next 15 years? I mean North Dakota is
pumping out more oil now than they ever have. Only second to Texas --
SCHULTZ: -- and beating some OPEC countries as well on those scale. And
the fracking has made a lot of people nervous and it could compromise the
water supply in the State with Lake Sakakawea and the Missouri River.
Isn`t this quite a gamble?
DORGAN: Well, look, there are some downsides, there`s tremendous upside to
producing new energy in this country, for this country. But, you know,
about -- I think six years ago, I suggested the state legislative leaders,
and the governor, and others that they needed to have a special session on
the legislator to get ahead of all the infrastructure problems, that will
come from this kind of development. And I was told to take a hike, they
said, "You and U.S Senate not in -- state (ph) government".
But the fact is, there are very significant infrastructure problems. And
the State is way behind, not ahead of them. And -- so, I think that`s why
this races having debate and discussion about these issues as very
SCHULTZ: Is the oil interest the North Dakota and in that part of the
country so strong, there really isn`t much different between the
Republicans and Democrats?
DORGAN: You know, I don`t know that I`m capable of answering that. I
don`t think that`s the case. And look, anytime there`s a big industry
dominant in an area, they`re going to have a significant or profound amount
That`s not something that`s entirely new. What is new is, as I said the
Supreme Court decision and others that allow a lot of money to wash along
this political system. You know, big money in ways that you can`t identify
SCHULTZ: OK --
DORGAN: And that`s a national problem. That`s not just in North -- that`s
a big national problem that has to get fixed.
DORGAN: The Supreme Court ought to hang its head on that.
SCHULTZ: Well, the big corporations are sure paying attention to the small
races, because they want to permits to do whatever they want to do.
Senator Byron Dorgan, good to have you with us tonight here on the Ed Show.
I appreciate it.
Remember to answer tonight`s question there at the bottom of the screen.
Share your thoughts for us on Twitter at Ed Show and on Facebook. Like us
on Facebook. Thanks for that, and at WeGotEd.
Coming up, after a weekend to protest, Detroit residents will have water
restored for a 15-day reprieve. Rapid Response Panel will weigh in on the
But first, while Republican warthogs (ph) gear up for the next fight,
Senate Democrats focus on a more important road for Americans. Senator
Barbara Boxer joins me on the news today.
Trenders coming up. Stay with us.
SCHULTZ: What`s hot, what`s not? Time now for Trenders, Social Media.
Here`s where you can find us, facebook.com/edshow, twitter.com/edshow and
ed.msnbc.com. WeGotEd has really been hot lately, by the way. And you can
podcast at wegoted.com, rawstory.com, ringoffireradio.com, and it`s free on
iTunes. Free everywhere. I`m just a good guy.
The Ed Show Social Media Nation has decided. We are reporting. Here
today`s top trenders voted on by you.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hello?
SCHULTZ: The number three trender, Sam I ain`t.
UNIDENTIFIED MALE: Tony Dungy`s comments about Michael Sam.
UNIDENTIFIED MALE: Sam is the first openly gay men to be selected from the
UNIDENTIFIED MALE: I wouldn`t have taken him not because I don`t believe
Michael Sam should have a chance to play, but I wouldn`t want to deal with
all of it.
UNIDENTIFIED MALE: Tony Dungy says he would not have drafted Michael Sam.
JOSH KATZOWITZ: Tony Dungy supported Michael Vick when he`s coming back
from his jail time.
UNIDENTIFIED MALE: It`s not going to be totally smooth. Things will
UNIDENTIFIED MALE: For a lot of locker rooms and probably a lot of GMs
across the league they probably thought the same way.
UNIDENTIFIED MALE: My role is -- right now is, to do whatever I can help
the team win.
SCHULTZ: The number two trender, lawn and order.
UNIDENTIFIED FEMALE: In the midst of one of the worst drought in decade--
UNIDENTIFIED MALE: 80 percent of California deals with extreme drought
UNIDENTIFIED MALE: Am I going to jail because I have brown on my lawn?
UNIDENTIFIED MALE: A drought-conscious California couple has mow problems.
UNIDENTIFIED MALE: They believed that they were just trying to avoid
violations by saving water.
UNIDENTIFIED MALE: Would you please stay of my grass. Please.
UNIDENTIFIED MALE: Now they have fear, they could be facing violations by
UNIDENTIFIED FEMALE: They want out lawn to be very green within 60 days or
we`ll get fines at $500.
UNIDENTIFIED MALE: I got a better idea.
UNIDENTIFIED FEMALE: The grass is always greener if you paint it.
SCHULTZ: And today`s top trender, road warriors.
UNIDENTIFIED FEMALE: Transportation funding will be cut by 28 percent on
August 1st unless the Senate and the House can come to an agreement.
SCHULTZ: Iraqi War cost the United States $1.7 trillion. Republicans had
really no problem with it.
Republicans pave a road to war.
UNIDENTIFIED MALE: He didn`t call for arming the Ukraine so they can
UNIDENTIFIED MALE: Move for some of our troops into areas that are being
threatened by Vladimir Putin.
SCHULTZ: While the Nation`s roads and bridges crumbled.
UNIDENTIFIED MALE: Congress is about to approve the equivalent of blacktop
on a path hole.
SCHULTZ: Our nation`s infrastructure is crumbling and Republicans just
don`t seem to care.
UNIDENTIFIED MALE: No one in Congress wants to vote for a tax increase on
something like gasoline.
(END VIDEO CLIP)
SCHULTZ: Joining me tonight on the Ed Show, Senator Barbara Boxer of
California. Senator, good to have you with us tonight.
SEN. BARBARA BOXER (D), CALIFORNIA: Thank you.
SCHULTZ: Let`s talk about roads first.
SCHULTZ: You know, Republicans just can`t wait to do -- intervention in
Ukraine, they don`t care ho much how much we spend. But on the domestic
side, they`re tight with the dollar.
The House passed a short-term fix on the highway funding trust fund. Why
don`t you support that in its current version? What do you have against
that? Where are you?
BOXER: Here is the problem. We need to fund roads, bridges for -- and
transportation systems for a multi-year period. I say six years.
And my committee, the Environment and Public Works on bipartisan basis, Ed
which is rare, not a dissenting vote. And we have on the committee, you
know, James Inhofe and Bernie Sanders, and we have Jeff Sessions, and we
have Sheldon Whitehouse, and we have Senator Vitter, and me, and others.
We decided, it`s very important to fund transportation and we voted out a
six-year bill. The next step, we have to fund it. And that`s not in the
jurisdiction of my committee and it went over to the Senate Finance
Committee and the House on Ways and Means Committee. And House, Ways and
Means Committee acted, and they acted on the package that is the worst
They, short up (ph) the trust fund instead of doing it before the end of
this year, so we can act this year and give some certainty. They did it
till May, which is right up against the next construction season and they
use gimmick like pension smoothing--
BOXER: -- which we`ve used that before, but you know what? This is giving
the companies another five years where they don`t have to fund their
BOXER: -- to keep the highway trust fund going for a few months. Ed, you
talked about all of the challenges we`re facing in the world that we can`t
control, we can control this.
SCHULTZ: No doubt. And Senator--
BOXER: You know, we can.
SCHULTZ: -- your thoughts on the gas tax. And that has been raised over
SCHULTZ: Is this part of the problem?
BOXER: Well, it`s definitely part of problem because what happens is, our
bridges are aging. You know, we have 70,000 bridges that are deficient, a
quarter of our bridges -- more than that even are over 50-years old. And,
you know, speaking from my view point, you get a little older, you need a
little more maintenance, you know, I think that certainly true of their
The bottom line here is that what the House did is a very sad situation.
They keep the can down the road. They know that cliche but that`s what
they did. Instead of dealing with it, this dealing which is what we
support are shorter term extension. We get to the lame duck after the
elections behind us and have some guts.
Now, you want to talk about the gas tax. It was started -- as my history
reading goes by Herbert Hoover then it was used for highways by the Dwight
BOXER: Then it was raised by Ronald Reagan, George Herbert Walker Bush,
Bill Clinton -- there is no reason why we can`t take a look at this gas
tax. A few cents will make a difference.
SCHULTZ: No doubt.
BOXER: And we can do what we have to -- and by the way there`s 700,000
unemployed construction workers. Those workers would fill, you know, seven
super bowl stadiums.
We need to put people to work, we need to fix the bridges, the highways,
keep the transport systems going--
BOXER: It`s in our control. We just need a little courage.
SCHULTZ: That is what it is. And of course, would be a political
ramifications to do it, make the President look good and they don`t want
that to happen.
Senator, you`re on foreign Malaysians, I want to go to this --
SCHULTZ: The State Department says, that their intelligence suggest that
Malaysia Airlines Flight 17 was brought down by a Ukrainian separatist.
And they have no direct evidence that the Russian government was involved.
Now, as a member of the Committee on Foreign Relations, what do you think
our response should be?
BOXER: Well, I think you ratchet up the sanctions on Putin. We know that
there`s separatist are only in business because of Vladimir Putin.
Let`s be clear. It`s pretty obvious. And the President is trying to this.
And I think it`s time for the Europeans to just recognize, they`ve got to
look toward what`s right here. I mean, look how many people from the--
SCHULTZ: They`re not being though enough?
BOXER: -- we`ll, no they`re not being tough enough. And I know their
hearts are breaking because so many Europeans went down in that plane.
SCHULTZ: So, what should they do?
BOXER: They should work with the President and ratchet up these sanction,
so that they really bite, bite, bite.
We need to stop the fighting over there. There is a government there, and
they have to be respected --
BOXER: They had an election and that`s what ought to be front and center--
SCHULTZ: Is the President too far out on an island on this? He needs more
support from Europe as you say it.
BOXER: Well, of course. Europe should be taking the lead. The fact is
this in Europe`s backyard.
America, we can push, we can do -- and he`s going to do more sanctions from
this country, our own country. That`s clear.
But the Europeans, I think they`re coming along slowly, slowly. The
separatist did it. We know that, and we know who support the separatist.
And we know who has waging (ph) and power over the separatist, it`s
BOXER: And Russia and they need to suffer from some sanctions here and
stop what they`re doing.
SCHULTZ: You want the President to go further on sanctions?
BOXER: I do. Well, the President wants to go further on sanctions as
well. And I think it`s just the question of Europe getting some backbone.
I understand they need energy.
But you know what? Putin needs them to buy that energy.
BOXER: So, I don`t think they should cower in a corner. They have to come
out there and fight for what`s right.
SCHULTZ: Senator Boxer, no maintenance, you`re perfect.
BOXER: Very cute. Well, thank you very much.
SCHULTZ: You`re perfect. Don`t change anything. Don`t change anything.
You are perfect.
Senator Barbara Boxer, good to have you with us tonight. Thanks so much.
SCHULTZ: Coming up, a 15-day moratorium over its 7,000 to Detroit
Who -- kind of like having the water on? Well, they had it shot off for
The Rapid Response Panel weighs in on the fights against the conservative
Utopia. Plus, Rick Perry`s political theatre brings the National Guard to
the border. What`s this all about?
Pretenders is ahead, your questions to Big Eddy, on Ask Ed Live, next on
the Ed Show. Stay with us.
SCHULTZ: Welcome back to the Ed Show. I appreciate the questions in our
Ask Ed Live Segment. Our first question tonight comes from Laday Moore.
He wants to know, "Why are Republicans hoping that America fails?"
Well, let`s reverse that. No, they want America to succeed but in their
view and their view is concentration of wealth and oppression as I see it.
Anything other than that, they want to see fail.
Our next question is from AL. He wants to know, "If the Republicans
somehow manage to take Obamacare away, do you think that will be the end of
First of all, there were two rulings today. It`s kind of like the Wizard
of Oz, "Pay no attention to the man behind the curtain." There`s going to
be rulings legal wrangling back and forth for years to come but the New
England Journal of Medicine pointed out that 20 million people have been
affected by the Affordable Care Act.
That`s a political movement. That`s something that I think the Republicans
don`t want to miss with. Change is here and it`s happening. And so,
they`re not going to take away Obamacare.
We`re on the road to change and it`s for the better.
Stick around, Rapid Response Panel is next.
BERTHA COOMBS, CNBC CORRESPONDENT: I`m Bertha Coombs with your CNBC Market
Wrap. Better than expected, earnings report from a number of companies
helps boost stock. The Dow rising 61 points, the S&P up 10, closing at
another record while the Nasdaq gains 31.
Apple shares are slightly lower in after hours trading, earnings were
better than analyst were expecting but revenue was light and the company
sold fewer iPods than expected.
Also after the bell, Microsoft reporting profits that missed the estimates
but its sales came in well ahead of expectation. Shares are higher in late
That`s it from CNBC, we`re first in business, world wide.
SCHULTZ: Welcome back to the Ed Show. Thanks for watching tonight.
Nine people were arrested on Friday as more than a thousand people took to
the streets of Detroit to protest the city sweeping water shut off that
were taking place.
On Monday, the city announced the 15-day moratorium on shutting off water
for people who were behind on their water bills.
Water Department Deputy Director Darryl Latimer said the 15 days will be
used to "educate customers on how to cure their overdue bills and avoid
The city says that more than 50 percent of its 170,000 residential accounts
are 60 days or $150 delinquent.
With more tan $43 million owed through the month of June, as result, over
15,000 households have had their water shutoff. It`s important to point
out roughly 38 percent of Detroiters live in poverty. 23 percent are
unemployed. The Median household income in Detroit is less than $27,000 a
year, almost half the national median household income. In the midst of
this crisis, the workers of Detroit are being forced to make some pretty
On Monday, the current and former city workers and retirees voted to
acceptable sizable pension cuts as part of Detroit`s bankruptcy plan if
General retirees who get an annual pension of $19 to $20,000 would get a
4.56 percent pension cut and loss annual inflation adjustments.
Now, retired police and fire fighters who received an average of $32,000 a
year would loss a portion of their annual cost-of-living raise.
The Michigan constitution says public pensions can`t be cut. But it looks
like all sphere (ph) in the nations largest municipal bankruptcy unfolding
Joining me tonight on our Rapid Response Panel, Detroit homeowner and
community activist Lee Gaddies also with us Reverend Doctor Wendell
Anthony, President of the Detroit Branch of the NAACP.
And before we hear from you gentlemen tonight, I just want to point out
that we just reported and saw today the stock market close at a record
number. 17,113 up 61.81, we`ve had 53 months of private sector job growth
in this country. We`ve got an unemployment rate of 6.1 percent.
We have restored every job that we lost in the great recession. And in
June, sales of existing homes in this country was up 2.6 percent. What`s
wrong? We can`t turn the water on in Detroit.
Lee average overdue bills are set in $540. What help is being made
available to these folks who are struggling to pay their bills, if any?
LEE GADDIES, COMMUNITY ACTIVIST: It`s no help and this isn`t a solution to
the problem, a 15 day moratorium. Detroit is subsidizing the 4 million
people that depend on Detroit`s Water Department. We have to remember that
Detroit taxpayers paid for and build a water system for Detroit that
everybody else is attached too. So the 4 million people in the suburb that
surround Detroit that depend on the system are being subsidized by the
people in Detroit.
And the people in my community, a badly community which make a 5,500
households, those citizens are average eight or 65 and plus. So we talk a
lot of seniors on fixed income that are -- depends on pensions that put
them below the poverty line. So, you know--
SCHULTZ: So what should happen? Should everybody have the water turned on
whether they pay the bill or not?
GADDIES: Everybody should -- yeah, if you want people to go look for jobs
I think they need to take a shower and maybe brush their teeth and they may
need a bathroom and earn water for that. If you want these people to be
functioning and stay in their homes and not be on government assistance
then maybe we should have the water on. I think we should do what the UN
said, and they shouldn`t pay any more than 3 percent of their income.
I`m not saying they shouldn`t pay anything but I think the water weight
(ph) should be reasonable. For some reason, we went to this radar system
(inaudible) bills have spiked and I don`t know if (inaudible) park and the
governor in the state of Michigan and Ford Field are disputing their bills
and they`re not being shutoff, then I don`t think we should be shutting
seniors in their homes at --
SCHULTZ: All right. So special circumstances here should be given to
Detroit because of the economics of it all. Reverend the NAACP has filed
the class action suit against the city, saying that the water shutoffs are
racially motivated. Explain that to us a little bit here. What`s
ANTHONY: Well that`s in the process of occurring Ed, right now, we have
the National Legal Defense Fund and also the ACLU along with the NACP and
several a other organizations that are looking at how we`re going to deal
with this constitution as well as legally. There was a law suit that was
filed by Michigan Welfare Rights Organization Maureen Taylor and the
people`s water board commission, last Friday, which is still pending.
Its interesting Ed, I`m here in Las Vegas with the National Conference of
the NAACP. We just passed the resolution condemning the water shutoffs in
Detroit and calling up one the state and the city to do something to
mitigate the shutoffs. We believe that should be an immediate moratorium
on shutoffs, not 15 days but that needs to be a primary, look at this, if
going with 90, possibly to a years so that we can get the process of how we
calculate the bills correctly. The Water Department does really -- doesn`t
know what`s customer based.
Before I came on, I had 98 year old woman to call me in the stress, based
on the fact that they`d just cut her water off. She had to pay $1,361 to
get it back on. A 98 year old retiree who has no other access other than
that and even misbilling her for the last several months and nobody has
come to assist her --
SCHULTZ: They`ve been misbilling her?
ANTHONY: They`ve been misbilling her. They`ve been -- She`s been paying
at a rate that she should not been paying. I`m saying and we know that
they don`t their customer based.
ANTHONY: They bill to the address. They don`t bill to the individual.
SCHULTZ: So is government is much the problem here Reverend?
ANTHONY: Oh, no question.
SCHULTZ: Is anything else because they`re trying to get rid of it, to
privatize this whole thing?
ANTHONY: One of the things that we have said very clearly is that there
are needs to be an increased water affordability program not that people
should not pay their bills but you have not put enough money into the
process, so that people who are going to this process can come to the table
and adequately take care of the water that they need.
ANTHONY: The governor has to come to the table, Gov. Rick Snyder who do
this process has created a situation by virtue of the water authority that
does not longer have to respond to the city.
They city of Detroit does not controlled the Water Department. It`s a
separate entity now. We need to be in control of that and the governor
cannot hide behind this and not come to the table --
SCHULTZ: Yeah. Lee --
ANTHONY: -- hope that need water can`t get it. We got water and can drink
SCHULTZ: Lee, does the community feel there`s a racial component here?
GADDIES: Ed, these are ongoing list of issues that we`re dealing with
them, trying to depopulate our neighborhoods from the indigenous residence.
We see a wholesale shift of a burden, the tax burden to the poorest people
and the most vulnerable in Detroit while other people get lamb for $1,
other people`s tax bills get tripled and quadrupled, right? We see this as
a way of them emptying up the city so they can repopulated with the
Detroiters that they feel comfortably.
SCHULTZ: Will there be more protest Lee? Will there me more protest?
ANTHONY: There absolutely we`ll be --
GADDIES: And we are taking to the streets everyday and yes, there will be
and we ask all of those out there that don`t wait for this to come on your
neighborhood, get involve now because if this was happening to your
neighborhood, Detroit will be there fighting with you.
SCHULTZ: OK. Lee --
ANTHONY: And on Thursday of this coming week there`s going to be a convoy
from Canada coming to Detroit with water, in downtown Detroit with Michigan
Welfare Rights Organization and the peoples with the water commissions to
deal with this issue.
SCHULTZ: OK. Gentleman, we`ll stay on the story, have you back, Lee
Gaddies and also Rev. Wendell Anthony, good to have both of you with us
Coming up, Scott Walkers new attack ad, takes aim at Mary Burke`s family
business. Ruth Conniff weighs in on Walker`s outsourcing annex and
strategy. We`re right back.
SCHULTZ: And the Pretenders tonight, all hat and no cattle, Rick Perry,
(inaudible), he`s a good guy. The Texas governor says he`s saddling up to
the border crisis, sending him the National Guard.
(BEGIN VIDEO CLIP)
RICK PERRRY, TEXAS SENATOR: The plied (ph) of these unaccompanied alien
children has rightfully captured the national attention. I will not stand
idly by while our citizens are under assault and little children from
Central America are detained in squalor. We are too good a country for
that to occur. I`m using my executive authority as Governor of Texas and
activating the National Guard.
(END VIDEO CLIP)
SCHULTZ: Wow, he`s using an executive order because we`re under assault
from kids from Central America. You know, when a Republican is in doubt,
what did they do? Well, always send in the troops. Perry thinks we`re too
good a country to hold children in detention centers although it`s fine to
push them back into the horrific conditions they came from. And of course,
the governor isn`t interested in tackling the broken system.
He`s interested in a political show, some real good theater. If Rick Perry
takes his political theater it is worth an ovation, He can keep on
SCHULTZ: Welcome back to the ED Show. This is the story for the folks who
take a shower after work. Wisconsin Gov. Scott Walker is using the Karl
Rove philosophy and strategy. Walker is attacking where he is weak.
Walker is targeting his Democratic gubernatorial Mary Burke in her family`s
bicycle business. His campaign released a television ad accusing the
company track of outsourcing jobs to China.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Mary, Mary, quite contrary, how does your fortune
grow? By making millions of dollars sending jobs overseas, that could`ve
done here, Wisconsin, the countries for women and children might work up to
12 hours a day earning on a $2 an hour.
UNIDENTIFIED FEMALE: Only $2 an hour? Interesting.
UNIDENTIFIED FEMALE: To be continued. There`s more, there`s so much more.
(END VIDEO CLIP)
SCHULTZ: Trek was stared by Richard Burke, Mary`s father in Waterloo,
Wisconsin. Her brother John Burke is the president of the company. Trek
manufactures more bikes in the United States of America than any other bike
company. It makes its products in Germany, in Holland as well as in China.
John Burke told the Milwaukee Journal Sentinel, the Chinese workers are
employed by outside companies not Trek. However, he didn`t know how much
they were paid in an hour.
He also said Trek inspects the contractor`s plants to ensure workers they
are not mistreated. Now, Scott Walker`s attacks are hypocritical. The
governor went from promising job creation during the 2010 campaign, the
outsourcing jobs form his own state. Reports last week show that at least
two companies that receive money from Walkers Wisconsin economic develop
and corporation shifted American jobs to foreign countries and also
contributed to Walker`s campaign.
Ruth Conniff, the Editor in Chief for the Progressive Magazine, she joins
me tonight. And at this hour the Milwaukee Journal Sentinel is reporting
that the Wisconsin Republican party has filed a complaint against Trek
Bicycle. They claim that Trek was dishing out corporate money and helping
out Burke in response to this television ad that has been put out by the
Walker campaign. It`s also pointed out that Walker more than half his
money has come from outside Wisconsin and two-thirds of Mary Burke`s money
has come from within the state. Donald Trump and Sheldon Adelson are also
contributing to Walker.
So once again, Wisconsin has it all, Ruth Conniff. How is this going to
play in the badger state?
RUTH CONNIFF, THE PROGRESSIVE MAGAZINE: Well, it`s a great story and it`s
really interesting that the Wisconsin governor`s race has come down to a
battle over outsourcing jobs and one of the things that happen today is
that the Wisconsin Republican party is retweeting Sen. Tammy Baldwin`s
tweets, talking about outsourcing and supporting the senate Democrat`s bill
to bring jobs home. And it`s sort of ironic, I mean I contacted Baldwin`s
staff and they said that they were glad to receive support from Scott
Walker and the Republicans in Wisconsin for the senate Democrat to pushed
But the great irony here of course is that, this ad by that Walker did, the
ad that you showed, the $175,000 per week to show that ad, it went up not
coincidentally basically to burry the news last week that Walker`s
Wisconsin Economic Development Corporation which he created to replace the
State Commerce Department has given millions of tax payer dollars from
Wisconsinites to companies that then laid off Wisconsin citizen, Wisconsin
residence and sent their jobs overseas. And so that`s a much more
significant example of outsourcing.
And in fact, Tammy Baldwin of the Republican Party is retweeting, is
supporting legislation to end tax breaks for corporations that outsource
jobs, which is exactly what Walker and he`s agency have been doing.
SCHULTZ: Well, Trek Bicycle from what I am told, hasn`t taken any tax
dollars to shift jobs overseas and the employee of work --
CONNIFF: That`s an important distinction.
SCHULTZ: That is a very important distinction from the standpoint that the
people who contributed to Walker`s campaign got tax payer dollars and they
shift jobs overseas. So does Walker have any right to go down this road on
Mary Burke`s family business?
CONNIFF: Well, look, all outsourcing is bad. It`s true that in 2013 Trek
sent about 15 to 20 jobs, folks are use to make lug nuts and mountain bike
frames in Waterloo, sent those jobs to China and that`s not great. It is
pretty small compared with the level of outsourcing that the citizens of
Wisconsin, the taxpayers have been financing, thanks to Walker`s Economic
Development Corporation, 50 percent of who`s funds went directly to Walker
CONNIFF: So, you know, this is a smart political move on Walker`s part.
This is swift voting. He`s picking his opponent`s greatest strength which
is her private sector experience and the fact that Trek Bicycle does employ
a thousand people and Wisconsin, has the largest employer U.S. bicycle --
CONNIFF: -- manufactures of United States folks and he`s attacking on that
and he`s bearing the bad news about his own outsource.
SCHULTZ: And there`s no doubt that this is a tight race, the latest
polling shows just that. Ruth Conniff great to have you with us tonight.
That`s THE ED SHOW. I`m Ed Schultz. POLITICS NATION with Rev. Al Sharpton
starts right now. Good evening Rev.
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