Musk Proposes Universal Basic Income to Prepare for AI Era

As concerns grow that the development of artificial intelligence (AI), a core technology for the future society, will lead to job losses, Elon Musk, CEO of Tesla, has proposed the introduction of a 'universal high income' system where the government regularly provides all citizens with an income above a certain level. Musk stated on his social media platform X that a federally provided universal high income is the best way to solve the unemployment problem caused by AI. He argued that inflation will not occur because AI and robots will produce more goods and services than increases in the money supply.

This concept is an expanded version of the Universal Basic Income (UBI) previously proposed by former US Democratic presidential candidate Andrew Yang. While UBI guarantees a minimum standard of living, Musk's 'universal high income' is based on providing an income level sufficient to live without working.

Sanjiv Sanyal, Principal Economic Advisor to India's Finance Ministry, criticized Musk's proposal, stating it would bankrupt the government. Pratyush Rai, co-founder and CEO of MullinAI, questioned whether widespread high incomes would intensify competition for limited resources such as housing and education.

Andrew Yang expressed support, saying AI will eventually make universal income possible and that it should be realized as soon as possible. The discussion serves as a catalyst for debates surrounding the economic structural changes brought about by technological advancements and the role of government, as shifts in the labor market due to the spread of AI become a reality.