On Friday, Elon Musk stirred conversation by proposing that a “universal high income” from the federal government might be the best strategy to tackle job losses resulting from artificial intelligence (AI).
In a post on his platform X, he stated, “Universal high income through checks issued by the federal government is the best way to address AI-induced unemployment.” This message has remained at the top of his account, and Musk dismissed concerns that such measures would trigger inflation.
He argued, “Inflation will not occur because AI/robotics will produce far more goods and services than the increase in the money supply.”
However, this assertion has faced criticism from several economists.
Sanjeev Sanyal, a former Chief Economic Advisor to India’s Finance Minister, commented, “He’s so wrong on this point.” He acknowledged that AI could cause disruption, but noted that like any technology, it also brings new jobs and opportunities over time. He highlighted that AI and robotics don’t produce more goods than the money supply supports or eliminate the possibility of inflation.
Sanyal emphasized, “Elon Musk’s universal high income will bankrupt any government that tries it.”
Another skeptic, Pratyush Rai, the CEO of Merlin AI, echoed similar doubts. He remarked, “The basic math about UHI doesn’t add up. If everyone received a high income check, everyone would be competing for the same homes, land, schools, and lifestyle.”
Yet, some individuals find potential merit in Musk’s proposal.
Andrew Yang, the former Democratic presidential candidate who has championed ideas like universal basic income (UBI) in the past, expressed a moderate degree of support. He tweeted, “It’s clear that AI will fund universal income. Let’s make it happen as soon as possible.”
Universal High Income (UHI) marks a significant evolution from Yang’s UBI, as the latter aims to help individuals meet their basic needs while still working, whereas UHI proponents suggest a total shift away from traditional employment.
