donald trump launches another apprentice program, this one for american workers looking to fill out millions of open jobs. and inequality was a buzz word during last year's presidential campaign. we've got new information that our cities are to blame for making inequality even worse. welcome, i'm stephanie ruhle. >> and i'm ali velshi. it's been a whirlwind week in washington. our businessman president doing what he can to focus americans on his agenda. >> doing what he can? i'm not sure. what he can do is tweet, and he

does. before we dig in, i want to read a tweet from the president on friday. ready for it? despite the phony witch hunt going on in america, the economy and jobs numbers are great. regulations way down, jobs and enthusiasm way up. ali velshi, we have talked extensively already about how the retail industry is getting killed. >> yeah. >> we know based on actual numbers, not sentiment, that car sales are down. >> right. >> and just this week we saw that another month, third straight month of declining new home construction. >> right. >> so the president needs to be careful. >> right. >> she specializes in great slogans and saying. but if he's going to tout the economy and use economic data, those numbers can come back and bite him. >> there are some things doing well but there are some that aren't doing well. part of his base says i see the stock market going up and house prices going up but i'm not feeling it because wages go up slowly. so again, one has to be careful

because you want to take blame for some things and credit for some things. it's a little early on in this presidency to be making broad sweeping generalizations about the state of the economy and his influence on it. >> it's that base of voters who are so angry when president obama would tout the booming economy saying that economy -- >> it's forgotten me. >> that economy has still forgotten them so the president might want to be careful. we'll talk more about jobs. for president trump it was -- or part of his administration wanted it to be workforce development week and he crowned it with a new executive order to expand apprenticeships and vocational training to young americans entering the labor force. the overall aim is to create 5 million apprenticeships over the next five years. that is ten times the current number. the president says it can be done by increasing coordination with the private sector. >> we're empowering these companies, these unions, industry groups, federal

agencies to go out and create new apprenticeships for millions of our citizens. apprenticeships place students into great jobs without the crippling debt of traditional four-year college degrees. instead, apprentices earn while they learn. >> now, apprenticeships are a great idea. we know the apprentice is a term the president likes, but there are six million job openings in the country. is that really going to get solved with apprenticeships. >> it may solve some of them. some of the jobs that are open is because we have a skills mismatch so people are not qualified for those jobs and they're not typically the kinds of jobs apprenticeships will fill. they're high education jobs like engineering. but there are some highly skilled jobs. governments aren't great at this apprenticeship thing so the idea that privatization might play a role isn't actually terrible. for a lot of reasons this work didn't become workforce

development week, including the shooting in d.c. but it's approaching the german model where you get people down a track where they earn money while they learn on a job and end up in a good career. >> and that works for germany, but it's also noteworthy that it's not a new idea here. apprenticeship usa was started during the obama administration. the founder of salesforce worked on it with obama. he's now working on it again in the white house. what president obama didn't do is market it very well. people didn't know that it existed. it sat in the labor department. we're going to take that effort and shift it over to the treasury department. but it's not like it's a new program. it's a beefed-up program, hopefully a smarter, better program, but it ain't new. >> and to follow anything to do with job development in this country, that's part of our mission on this show. the trump administration also talked a lot about debt this week. the u.s. has already hit the debt limit in june. it's june. the legal limit on how much the u.s. can actually borrow in may. >> now, why you haven't heard a

burchl is because the treasury secretary can move things around to keep paying the bills, but he has urged congress to raise the debt limit before the end of july. the treasury department also announced the u.s. ran up a budget deficit of $88 billion in the month of may. that's unusual because that's a 66% jump from the previous year. now, politicians in general sometimes, but republicans specifically, including donald trump, have long railed against deficits and debt. as you and i have discussed, donald trump's own budget proposal would probably increase the fed cal deficit. so for fact sake, how much do deficits and debt really matter? >> the united states budget is not entirely unlike your household family budget at home. the government receives income in the form of taxes and other revenues and it spends money on things like public programs and the military. and when the government spends more than it takes in, there's a budget shortfall, or a deficit. to make up the difference, the

government goes out and borrows money and runs up the public debt. that's where the similarities to your household budget end. unlike our household budgets, which need to be balanced or else we run into trouble, the u.s. doesn't need to balance its budget. the government ran a surplus 20 years ago but almost budget before and since assumes correctly that the government will spend more than it takes in. the last time congress even passed a balanced budget was in the early 1960s. all told, the u.s. has racked up around $20 trillion in debt because of these budget deficits. the interest payments alone take up almost 8% of the current u.s. budget and growing. public debt has become a political lightning rod and many americans have taken notice. according to pew polling, 52% of respondents say reducing the budget deficit should be a top priority for both the president and congress. but when you ask them which government programs they would

cut? most people wouldn't decrease any federal spending on any programs. and that explains why politicians pay lip service to cutting deficits and the debt but have so much trouble actually doing it. ultimately, though, the u.s. has no problem borrowing money from investors. there is confidence in the federal government to pay its bills with interest. could too much debt be a bad thing? perhaps. but the question is, how much debt is too much? and this connects to the point you made about the debt ceiling. there is confidence in the u.s. government to pay its bills except when people in congress start threatening that we're going to not pay our bills when the debt ceiling reaches its limit. >> ali, there could be a typo. it could say 6 billion or 6 trillion and people don't actually notice the difference. in terms of it being no surprise, the president did use it on the campaign trail, but as a businessman, look at his history. this is a guy who we pointed out before has gone bankrupt multiple times. he knows how to rack up debt.

>> he said it in the campaign. i know how to handle debt. i've used it to my benefit. >> correct. >> not paying bills can be advantageous. he's actually said that in the campaign. >> without a doubt. the thing is, do americans care? we love to say we don't like these massive deficits. we know the freedom caucus cares about it. but when you actually speak to everyday americans, there was that pew poll that said they care about it, they don't want that big deficit burden, but at the end of the day it doesn't affect people's everyday lives. it's the ultimate can kick. >> we should care about it because it's unsustainable not to do anything about it but we need a sophisticated conversation about this, not sort of just platitudes. >> it's easy to say don't make it my problem today. now for an update on the president's tax plan, he talks about it all the time. >> it's going to be huge. >> it's going to be big, huge, the biggest. >> secretary mnuchin is helping us put together one of the biggest tax cuts in american history. it may be the biggest single tax cut in american history.

and it also includes a great deal of tax reform, simplification and other things. >> the other thing we know is that donald trump's campaign pledge to cut taxes for the middle class while keeping them on the wealthy, that is falling by the wayside. this week treasury secretary steven mnuchin conceded the president would in fact sign a tax bill that benefited america's rich so long as it cuts taxes, any taxes. ali, do you think that president trump understands what it takes to actually reform our tax system? it is massive. >> it's very big, it's very complicated. one time we had a tax system that was really simple, everybody pays a percentage of what they earn. then special interests came in and changed everything around. >> and they're not leaving. >> they're not leaving. so it's going to take a very long time to decide who gets exemptions, what do we want to encourage. some people in the country say the tax code shouldn't encourage or discourage anything. the problem is we have a tax code that encourages you to give to charity, encourages you to get a mortgage and buy a house,

encourages businesses to form. it will take years of study to figure out how to do this. it's not a matter of writing a few bullet points down. >> which is all we have. the president is putting his team in an extraordinarily difficult position saying this is the biggest tax cut you've ever seen. people within his administration charged with this can't even get to that agenda. i want to play for you a minute of president reagan when they did it the last time. it was quite an undertaking. >> we must also salute those courageous leaders in the congress who have made this day possible. to bob packwood, dan rostenkowski, russell long and majority leader bob dole to jack kemp, bill bradley, dick de gephardt, who pioneered tax reform. >> the list goes on and on. >> republicans and democrats. >> it took a year and a half to do that. thus far we're not seeing any of that happen. so it is surely premature for

the president to say biggest tax cut ever. >> if you cut taxes and don't reform the system, we get back to my conversation on debt. that's how debt goes up. >> this takes you to repeal and replace. what are you replacing with? what's the solution? guess what happens this week, volatility. it hit the markets this week. gold and bitcoin. if you still don't know what it is, which a lot of people don't, we'll tell you. >> all right, you win. cities are supposed to attract people, money and ideas, lifting all boats, that's the theory. but they are in fact in some places decimating the american dream. we'll have a really important discussion about that when we come back. >> you're watching "velshi & ruhle."

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to the undoing of the american city. >> so metropolitan centers all around this country are seeing accelerated inequality. pockets of concentrated wealth and pockets of concentrated poverty are squeezing out the middle class. i've got a graphic to show you. in 1970, this is across all cities in america, the percentage of families living in either all poor or all rich neighborhoods, look at the columns on each side of the screen, total 15%. now look at the middle of the screen, the percentage of families in middle income neighborhoods. when you add those two together, it's 65% almost. fast forward now, change to 2012 and look at the distribution. look at the spread. the percentage of families living in all poor or all rich neighborhoods have more than doubled to 34%, the two columns on either side. the percentage of families in the middle income neighborhoods fell significantly to just 41%. so our cities are getting richer and poorer on the edges and they're slimming down in the middle class that are so crucial to cities. >> and we have to break down why

this big problem exists. we're very lucky today, we've got a world renowned urban studies professor at the university of toronto who has studied specifically how cities improve the human condition, and now he says he has been forced to reassess that thesis in his new book, "the new urban crisis, how our cities are increasing inequality, deepening segregation and failing the middle class and what we can do about it." walk us through this. what does city dwellers -- how are we losing based on how this is playing out? >> we used to have a society not only with middle class but incredible middle class neighborhoods which were our platforms for upward mobility. i was born in one in north new jersey. an italian-american neighborhood. my parents moved me to a working class neighborhood, got a scholarship to rutgers and off i went. those neighborhoods are being eviscerated and we are splitting

into these small enclaves of concentrated wealth surrounded by these much broader spans of concentrated disadvantage, which trap people. no way out. >> so that step ladder of going from one socioeconomic place to the next is sort of disappearing. tell us why it's a bad thing that our cities become these concentrated pockets. >> well, there's two reasons and there's a backlash. on the one hand you have a backlash called populism, and this rise of a populist backlash because some cities are doing well and other cities are falling behind. on the other hand, you have a backlash from the left and people are saying but we don't want to build up the city anymore. we want to keep it the way it was. the not in my backyard movement. so our cities can't create the density, the clustering, the clustering of talent and diversity that propels innovation and productivity and leads to higher standard of living for everyone across the country. >> as you look to a city like new york, do you mean that our artists, our musicians, our

creatives can't live on the island of manhattan and are being pushed out for building after building? if that's the case, politically speaking why does it matter? >> the creatives are being pushed out. fortunately new york is a big city and there's brooklyn and queens and the bronx -- >> they're not cheap. >> no, nothing is cheap in a great city. san francisco is the same, l.a. is the same. but the creatives who not only create the cultural life but are important to arts, design, fashion, entertainment, media, leading edge industries, tech in this city, $9 billion in startups in new york city, second only to san francisco, is they are driven out and these industries suffer. on the political end what we get is really this political crisis in america that people feel like their interests aren't being served so they lash out. some move to the right and go for the populism a la trump. others go for a kind of populism of the left. and we have this missing middle. >> so in fact that graph of what has become -- what has happened to cities is also a graph of

what's happened to us politically in this country. >> yes. >> the cities like political parties, like political moderates, are the breeding grounds for people to come together. >> richard, what's actually going to -- what can be done? you're going to continue to build massive high rises. >> rents will go up. >> with apartments rather than having cool, chic, open lofts where artists can squat and hang. >> we've got to do three things, we've got to build more. new york has built -- >> i don't know, we're pretty built. >> we've got to increase density. but we've also got to commit to providing affordable housing. you know, if you're a professor in new york city, if you're columbia or nyu, you get affordable housing provided by your university. we need to do more of that. and finally, we need to upgrade the jobs of service people working in service industries. you know, they're the folks who are falling further and further behind, even compared to the artists. they have got to have a living wage that they can make ends meet. >> my kids go to school in new york city. i want their teachers to live here. >> there's a lot more in this

amazing bok and it's worth a read. thank you for joining us. still more vels"velshi & ru coming up. guess what we're going to talk about? >> no! >> bitcoin. i'm going to try, try to explain this to you. >> i'm going to be listening to that. i'm going to attempt to tell you what i think about stephanie's explanation once it's done, stay with us. >> make an attempt. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how, so you can get business done. american express open. to real teeth. dentures are very differentne. they're about 10 times softer and may have surface pores where bacteria can multiply. polident kills 99.99% of odor causing bacteria and helps dissolve stains.

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with all the news that came out of washington this week, it would have been easy to overlook what a volatile week it's been for wall street. the federal reserve hiked interest rates -- somethi >> expected. >> by a quarter point which is why it didn't slow the stock market down. the rate increase didn't do anything. oil futures fell to a seven-year low. gold prices tumbled to a three-week low. >> i want to talk about a different kind of volatility, a different one. bitcoin. it's one of ali's favorites. we have to talk about it.

why? because it soared to a record high and then dropped off a cliff all on its own. people don't seem to know why. bitcoin is the popular, popular word, name, idea these days. >> does it look like this? >> no, it doesn't look like this. a lot of people still don't exactly understand what it is so i'm going to take a shot of explaining it. but i warn you, crypto currency experts who aren't going to like this basic explanation, it's only scratching the surface. here goes. bitcoin is like your debit card. it's a way to pay for goods and services electronically, online and off. imagine if your debit card only stored its only kind of digital currency using a sophisticatedin encryption system. that's what bitcoin does. to get wit bitcoin, you can buy it or receive it just like traditional money. unlike cash, you cannot hold it

and you can't hand it to a cashier at the store. it doesn't work like that. you can keep bitcoin in a digital wallet, which you can access on your computer or a smartphone. and you spend it just like you would spend any money, as long as the party you're paying accepts it. one difference, though, when you use dollars to make a purchase, if you aren't using cash, your transaction ultimately routes through a bank or credit card company. bitcoin cuts out the middle man and transfers funds directedly from one person to the other without requiring personal information. that means the transaction is virtually anonymous. instead of a bank monitoring the activity, a massive network around the world keeps track of every transaction on a communal balance sheet. and just like e.r. currenku oth investors can buy and cell bitcoin purely to make money. more and more people are treating bitcoin as an investment. you can understand why. when you look at how much the

price has increased, some 300% over the last three years. but with bitcoins great gains comes extreme volatility. earlier this week just one day after it reached a high just shy of $3,000, it then fell by almost $500. >> so, ali velshi, if i gave you $100 -- >> good explanation, by the way. >> or $100 worth of gold coins, would you buy bitcoin with it? >> as an investment, not at all. there are some reasons for it. if you live in iran or nigeria where your credit cards are not useable, you want to buy a dell computer, you can go on dell and order a computer to go somewhere that doesn't have credit cards using bitcoin. so as a transaction, it has value. i would buy it at that moment and spend it on whatever it was. it's transactional. as an investment, there's no basis for it. it's not backed by anything. so i wouldn't -- i wouldn't buy it. i'd sooner buy $100 of chocolate. >> that does it for vel s"velsh

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it is over, at least for now. the bill cosby sexual assault case ends after more than 50 hours of jury deliberations, and at this hour he is a free man. good day, everyone. i'm alex witt here at msnbc world headquarters in new york. it is 1:00 in the east, 10:00 a.m. out of the west and we begin with this breaking news from pennsylvania. the judge this morning declaring a mistrial in the bill cosby sexual assault case. the announcement came shortly after jurors began their sixth day of deliberations. cosby has repeatedly denied any sexual misconduct. here is defense team reaction. >> jurors of allegheny county