Elon Musk’s proposal of ‘universal high income’ to combat AI job losses baffles economists
Elon Musk made headlines on Friday with his suggestion that implementing a “universal high income” paid by the federal government is the most effective way to address job losses caused by AI.
In a post on his X platform early Friday morning, Musk stated, “Universal HIGH INCOME via checks issued by the Federal government is the best way to deal with unemployment caused by AI.” The proposal, still pinned to the top of his X account, countered the belief that such payments would lead to inflation.
“AI/robotics will produce goods & services far in excess of the increase in the money supply, so there will not be inflation,” he wrote.
Many economists, however, disagreed with Musk’s proposal. Sanjeev Sanyal, former top economic advisor to India’s Minister of Finance, stated on X, “He is so wrong on this,” adding that AI will bring about dislocation but will also create new jobs and opportunities in the medium term. Sanyal also refuted Musk’s claim that AI and robots will not lead to inflation.
“Elon Musk’s universal high income will bankrupt any government that attempts it,” Sanyal concluded. Another skeptic, Pratyush Rai, the co-founder and CEO of Merlin AI, also criticized the concept of UHI, stating that the math doesn’t add up and that it would lead to competition for resources like housing, land, and schools.
However, some individuals see potential merit in Musk’s plan. Former Democratic presidential candidate Andrew Yang expressed tepid support, suggesting that AI could ultimately fund universal income and advocating for its quick implementation.
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