what a week. a u.s. budget proposal that cuts trillions in spending and a health care bill that could affect tens of millions. >> and we've been wanting to talk about this story, fake news explained. not the kind donald trump complains about but phony reporting that preys on our gull ability and rakes in a lot of money. welcome, i'm ali velshi. >> and i'm stephanie ruhle. president trump adds german to his naughty list, and what a week it has been for his administration on the policy front. >> well, we've had two big sets of numbers coming out of washington. the cost of the republican

health care bill and the cost of everything else, otherwise known as the federal budget. let's start with the gop health care bill and how it affects tens of millions of americans. this is known as the american health care act, ahca. here are the headlines. the nonpartisan agency that analyzes most legislation, the congressional budget office, says 51 million americans will go without insurance by 2026. that's 23 million more than would have been uninsured under obamacare, which is also the affordable care act. and despite what you might hear from some politicians, including house speaker paul ryan, average premiums for single policyholders will continue to rise because the cost of health care continues to rise. boy 2026 under the new but not fully passed republican law, individual policy rates will increase by between 4.4 and 5.3% a year. now, that's a little lower than the 5.5% increase that was expected under obamacare. but it's important for everybody to remember there's still increases, there are no decreases. one of the things that we have to be careful about is when

we're talking about lowering premiums or slowing the increase down, this new bill offers a very different set of coverages, so it's not an apples-to-apples comparison. when you tell people premiums may go up at a slower rate, you're insuring not the same things. >> it's also about it does what for whom. if you're a high income earner, if you earn over $200,000 a year, that medicare payroll tax that you had, that's going to be gone. that's a positive for you. for young people who are healthy who have said i'm not sick, i don't want to buy insurance, you don't have to. so it's a positive for groups of people who have a lot of options. who it's not a positive for is our aging population, people with pre-existing conditions. if you are in that camp and you really need the help and the support where it could be life or death, it could be a whole lot more expensive. >> speaking about life and death, there are a lot of conversations about obamacare being in a death spiral. it's important to note that obamacare is not one piece of legislation, it's a lot of pieces of enabling legislation, some of which republicans have

decided they're not going to fund. they just made a decision to continue subsidies to insurance companies that will go on at least for another three months or so. but in and of itself, as somebody explained to me, if you throw somebody out of a plane, they're going to fall out of a plane. that's kind of what they're doing with obamacare. in and of itself it might have survived. i do sometimes wish democrats would have done more to fix some of the problems with obamacare. >> well, the president also needs to realize there is no obamacare anymore. he owns health care. he runs the country. guess who else is winning here? health care companies. we talk so much about insurance companies. well, they're leaving some of the exchanges, they can't afford to be there. i scratch my head on that because i want you to look at this chart. there you go. aetna, hugh mmana, look at thei stock, it's gone, up, up, up. excuse me, i went anthem, not

aetna, another big a. but going in the direction that's more profitability, good for the shareholders. when it comes to who are the stakeholders, that's the american people we're thinking about here. meanwhile, president trump has come out with a budget proposal. he takes an ax to medicaid, the safety net and all nondefense departments. cuts totaling $3.3 trillion over ten years. now, the president claims that he will balance the budget within those ten years, but that is some serious wishful thinking. and for fact sake, here's why. >> the trump administration clearly has gdp growth on its mind. >> 3% growth in an american economy is to some people an absurd assumption. it used to be normal. >> i think we can absolutely get to sustained 3% to 4% gdp. >> we're bringing it from 1% up to 4% and i actually think we can go higher than 4%. i think you can go to 5% or 6%. >> president trump came out with his vision for the u.s. budget. sure, it comes with big

increases on spending for defense and infrastructure at the cost of hundreds of billions of dollars of cuts to welfare programs and the safety net. beyond these line items, budget documents highlight a president's priorities and asumasum assumptions they make about our future and this budget assumes a lot. tax cuts and deregulation that push economic growth to 3% a year, except that america's economy grew by just 1.6% back in 2016. and the congressional budget office only forecasts growing to as high as 1.9% by 2021. so how is it that trump is planning to double our economic output? he assumes that lowering taxes on the wealthy and big business will trickle down to the rest of americans and benefit us all. this was tried under president reagan and history shows it did not work out that way. more importantly, demographic trends are working against the president's thesis. it's true, we did see 3% annual growth back in the '90s, but we

also had higher productivity and labor participation rates back then. today is much different. america's labor force has shrunk since the last recession. and with a 4% jobless rate, we are at what economists call full employment. so where would we even find enough new workers to get to 3%? immigration would help, except this president's message to future immigrants is to stay home. assumptions are assumptions. but assuming 3% growth is just pie in the sky. >> ali velshi, tell me i'm wrong. >> we're friends. we can tell each other when we think the other one is wrong. i don't think you're wrong on this one. i have a goal to lose five pounds a month but i'm not buying new clothes just yet because it's a goal. the government, it's just disenergen u.s. to suggest you're going to get to this growth rate, it's 50% as you pointed out faster growth than we have right now. you've got to base it on what's actually happening.

>> larry summers says this thing works if you believe in the tooth fairy. alan simpson, republican of simpson and bowles, says this means nothing if you're not touching entitlements, which we know it's not. >> social security and medicare. >> what's interesting is what mick mulvaney had to say and the different approach they're taking. take a look. >> we are no longer going to measure compassion by the number of programs or the number of people on those programs. we're going to measure compassion and success by the number of people we help get off of those programs and get back in charge of their own lives. we're not going to measure our success by how much money we spend, but by how many people we actually help. >> he's not necessarily wrong, i get it. >> we'd love to see people not have to be on social assistance and not have to be on welfare, but how do you get there? >> you need programs. the position that we're in right now, we heard from president trump, we're going to stop this, we're going to do this, it's go time. what's the actual program? if you're going to see the omb director get up there and say these programs don't work, that

has to be paired with -- >> something that does work, right. so we support the goal of 3% economic growth. that would be terrific. we support fewer people on food stamps and social welfare problem, but not if they just fall off and you have nothing for them. >> if these programs aren't working, let's fix them, but we've yet to another alternate solutions. that's an issue. president trump's super successful trip overseas ran into some hiccups. german media said the president ripped into the germans saying they're, quote, bad, very bad on trade. trump's economic advisor, gary cohn, former president of goldman sachs, confirmed that, quote, he had said they're very bad on trade, but he doesn't have a problem with germany. now, trump is said to be fuming over the millions of cars that german automakers sell in the u.s. every year. about 1.3 million a year. and we do have a trade deficit with germany. let me just show you what that looks like. we sell germany about $49

billion worth of product and services in 2016. germany told us $114 billion. so there's a $65 billion trade deficit. that is what is getting under donald trump's skin. >> clean up on aisle four is not what gary cohn thought he was going to be doing for a living but it's what he is. a number that sticks out to me that i wonder does the president look at, 85,000. that is the number of cars over the last seven years that german manufacturers have made -- excuse me, 850,000, i'm off by that much. those cars were made here in the u.s. by u.s. hands. it's not that black and white. >> and what donald trump and gary cohn and everybody in brussels needed to understand is that we don't do trade deals individual low with european countries. that's why they have this thing call the eu. our trade deals are with them. so this threat that we're going to drop this border adjustment tax every time we don't like the way something is going isn't really the most productive thing. >> paul ryan might like the idea

of border adjustment tax. we've now heard this week from steve mnuchin, not going to happen. just yesterday john boehner said, please, it's dead as a door nail. we're taking a break. still to come on "velshi & ruhle," do you want to see me get really angry? we're talking american ceo pay. they made out like bandits in 2016 getting big raises, and their workers not so much. and have you heard this before? >> fake news. fake, fake news. >> yeah, you have, of course. what he's talking about isn't actually fake news. there are real absolutely made-up dishonest stories competing for clicks in your news feed. we're going to tell you why they make so much money when we come back. this is a story about mail and packages.

and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you

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>> fake news. >> fake news, folks. a lot of fake. >> it's all fake news. >> fake news, two words we've been hearing a lot lately. donald trump rails against fake news and the fake media almost every day. >> and there are times when a reputable news organization gets a story wrong, but that's actually just bad reporting and there's a difference. actual fake news stories are not only deceptive, they are designed to make money off of clicks online. that makes them very lucrative for the people behind them. fake news is everywhere. headlines like these are designed to lure you in even if it's a lie. with each click, fake news creators are raking in the bucks. the money starts to trickle in with as little as a fraction of a penny per click. that adds up fast if a fake news story becomes a viral sensation with thousands, even millions of shares and likes on social media platforms like facebook. which gets an estimated 1.8

billion visits per month to its site. at this point the algorithms these platforms use kick in. the ads you see next to a fake news story aren't placed there by the advertiser, facebook, google and others determine the ads you see when you click on a fake story. with no actual human oversight, it's an automated form of advertising that rewards high traffic to fake news sites rather than good content or accuracy. one well-known hoax publisher claimed to make up to $10,000 a month on fake news ad revenue alone. it's easy to see why. americans trust and confidence in the mass media to report the news fully, accurately and fairly has sunk to a new low according to a 2016 gallup poll. 32% of people surveyed said they had a great deal or fair amount of trust in the media compared to 40% in 2015. according to a 2016 pew research survey, 62% of adults say they

get their news from social media. 44% say they get it from facebook. many people believe that news posted by their friends and people they follow is as reliable as news curated by the mainstream media. since the growth of fake news and the criticism surrounding it, both tech giants google and facebook have vowed to ban the deceptive stories and have started to take steps to stem them. >> so that's just the basics of how fake news makes money. what you have to worry about is the weaponization of it. if you can get these clicks and you can make this kind of money, what happens if you turn this not just from a money-making thing but into something to spread your political views or your religious views or whatever the case is. >> ali, it's more than just bias. the issue is the incentives. if you are incentivized by the amount of clicks you get, it's a lot easier to create a fake news story. it requires no research. you can write a wild headline and there's no ramifications. >> that's right. >> there have to be much more

ramifications. we actually saw that this week. another news organization, fox news, had stopped -- they retracted a story and they had one show that was continuing to push the story of a dnc staffer who was killed after the network had retracted it. we know at least two advertisers said, you know what, we are not going to stick around for this. >> so advertisers are the key. you as a consumer need to put pressure on advertisers, even if those advertisers don't deliberately place those ads on stories that are not fake, you need to be able to screen shot it, send an e-mail to the advertiser and say i don't think that this makes sense that your ads are supporting what are clearly fake news stories. >> reporters make mistake. >> sure. >> but when something is designed to simple ly get click and get people riled up -- >> that's deliberate dishonesty. >> it certainly is. what happens when two billionaire buddies get together to talk shop? deals get done. how being chummy with the

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i wonder how big a deal he is to everybody else. he's a big deal in our world of financial journalism. >> huge. >> carl icahn, a billionaire investor. he also happens to be a special regulatory advisor to president trump. this week we learned that his oil refining company, cvr energy, saved roughly $60 million in the first three months of this year because of expected changes to some fuel regulations that icahn himself actually lobbied for. understandably a group of lawmakers led by senator elizabeth warren are crying foul. they sent a letter to u.s. regulators urging them to look into icahn, but it's not clear that anything is to be investigated. icahn is not a senate vetted or nominated appointee to the government. >> my design. carl icahn was not about to take a position that required

divesting or confirmation, but he does have massive influence. and while you could say $60 million, carl icahn doesn't get out of bed for dough like that. the fact that he can have influence over the s.e.c. chair, who chooses the epa director, this is a big deal. it directly impacts the billions of dollars this guy invests. >> and he's not the only one. there are other such advisers. >> i think to steve schwartzman, co-founder of blackstone. blackstone the main financier lender to the kushner family business. we'll see if he joined president trump leading this saudi arabia trip and the saudis just gave blackstone $20 billion to their infrastructure fund. now, blackstone has said they were talking to the saudis over a year. >> there's no indication that it's necessarily bad. as you said, it's the spirit. there are a lot of americans who are frustrated with ceos and corporate america and this sort of thing only gets us closer to that. >> it's exactly where the rubber hits the road. so many people saying i'm not making any more money, i'm

frustrated. i don't mind if they make money as long as i do. but they're not. i want to talk more about that ceo pay because ceos are doing really well. according to a new report from the a.p., executives in corporate america saw their annual compensation jump 8.5% in 2016 to a median of $11.5 million. >> that means half made more and half made less. it's not an average, but it's a median. >> it's a lot of money. if you think about this, ceo pay has gone up 20%. that is almost double the rate of typical full-time employees across the country. and this is not only companies that have done really well. and there is this racket, there are these ceo counselors that come in, these compensation consultants. if your company might be failing, you're saying let's get rid of the ceo. the ceo leaves. >> how much do you pay the new one? >> before that, they get a huge exit package. how much do you pay the new one? i don't see many boards saying we want a discount ceo. but when companies aren't doing well, they lay people off. people don't get bonuses, they

lose benefits. >> general lly speaking, when t ceo leaves, even if it's failing, that ceo has done better than any worker at that company has. >> i look at ibm. they have been down 20 consecutive quarters in sales, 17 quarters in sales projections. what did she make? >> $97 million. >> maybe watson can explain that to me. >> the problem isn't that these people earn a lot of money, it's relative to what everybody else is doing. let's compare ceo pay, the one in the blue, to typical worker pay, that's that in the red at the bottom. this is of companies in the s&p 500. that tells the story right there. sure, regular worker pay has gone up a bit but look at what ceo pay has done. people will say i get it, the ceo gets paid more than the electrician in a company. but this is where -- the regular worker actually has to do their

job or they get fired. let's see what happens if we see losses for 20 consecutive quarters on our tv shows. you won't be watching us here. >> frustrated people, frustrated americans, they're not dedicated to steel towns and coal workers. across corporate america. if you're not seeing any pay increase and your ceo is, you're starting to say i'm frustrated. >> but there are companies that are doing good things by their workers. >> this is very cool. >> there are companies who are saying if you get to a certain level or you work for us for a little while or you put a certain number of hours in, we'll give you some equity in the company. if you're not going to fix your ceo pay, at least start going down this road. >> this week we saw for the first time a trucking company give their truck drivers equity. i like that story. >> i love chobani yogurt. he said when this company goes public, the workers get 10% of the company. we don't hate companies, we don't hate ceos, we don't hate the stock market. by the way, it's been a busy, busy week for stephanie ruhle. in between this crazy news cycle, stephanie found time to

inspire new college grads from her alma mater, lehigh university, in bethlehem, pennsylvania. listen. >> do not just resist, do not simply follow blind, use your power, use your mind, your youth and your voice. it doesn't mean you need to solve the world's problems or achieve greatness one day. use your power and use it today. make today a day of impact and just do something good. >> it was obviously a huge honor for me on my 20th reunion to go back to school, but it's really important. i think it's one of the reasons we sit here and do this every day. think about this week. we had someone who got a seat in congress who body slammed people. we said, well, maybe he's a fighter. we need to bring back

compassion, thoughtfulness. young people, you can do it. that's going to do it for us today. vels"velshi & ruhle" finished, 2. find us on twitter and facebook. monday through friday for me at 9:00 a.m. >> and 3:00 p.m. eastern for me. break through your allergies. try new flonase sensimist allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.

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which adds fuel to my bottom line. what's in your wallet? hello, i'm jacob soboroff at nbc's brokaw news center in los angeles and we are following breaking news. president trump heading back to washington at this hour and new reaction from the administration a short time ago in response to one of the headlines that awaits the president when he gets back to the united states. that being "the washington post"'s report on jared kushner's attempt to set up back channel communications with russia. here's national security advisor h.r. mcmaster during an off-camera briefing with reporters this morning. >> we're all wondering why somebody who is now a senior administration official would want or need a back channel to russia, and from your view what the securityrn