Elon Musk, a prominent advocate for universal basic income (UBI), sees it as a crucial response to the rapid advancements in automation and artificial intelligence (AI), which he predicts will drastically reduce the need for human labor. As the CEO of Tesla and SpaceX, Musk envisions a future where self-driving vehicles and AI-powered machines perform most of the work, leading to widespread job displacement. Musk’s perspective on UBI is rooted in the belief that as automation progresses, the economy will be so productive that everyone will receive not just a basic income but a high one, giving people more freedom in how they spend their time and money.
Universal basic income refers to the idea of making recurring cash payments to all adults in a population, regardless of their employment status or wealth, with no restrictions on how they spend the money. Musk believes that as machines take over more jobs, UBI will become necessary to ensure financial stability for everyone. He has frequently shared his thoughts on UBI and its importance in an AI-driven future.
In a CNBC interview in November 2016, Musk highlighted the likelihood of UBI becoming a reality due to automation. He pointed out that with robots taking over more jobs, people would have more time to engage in complex, interesting activities and enjoy increased leisure time. He expressed confidence that UBI would be the solution to the job displacement caused by automation.
Musk reiterated his belief in UBI during the World Government Summit in Dubai in February 2017. He stressed that as robots become better at performing tasks than humans, the need for UBI would grow. Musk clarified that his prediction was not based on wishful thinking but on his assessment of the likely outcome of technological advancements.
In a series of posts on X (formerly Twitter) in June 2018, Musk further elaborated on the necessity of UBI in a world where AI takes over most human jobs. He suggested that a universal income should be provided even if individuals have jobs, emphasizing that productivity should be rewarded. This perspective underscores his belief that UBI could coexist with employment, ensuring financial security for everyone.
Musk has also linked UBI to the broader goal of maximizing happiness. In a post on X in July 2020, he argued that the government’s role should be to maximize the happiness of its citizens. By providing each person with money, individuals could decide how best to meet their needs, rather than relying on legislation that often serves special interests. He suggested that direct payments to consumers would be a more effective form of stimulus than traditional government programs.
Reflecting on the pandemic stimulus in March 2021, Musk referred to the $1400 stimulus checks as a form of “UBI lite.” He appreciated that these direct payments allowed people to choose how to spend the money, although he criticized other aspects of the stimulus package as being less beneficial to the public.
During Tesla’s AI Day in August 2021, Musk delved into the fundamental nature of the economy, describing it as being based on labor. He argued that in a future where there is no shortage of labor due to automation, UBI would be essential. This statement underscores his view that the economy’s foundation would shift dramatically as AI and automation reduce the need for human labor.
In a post on X in December 2023, Musk envisioned a future with “universal high income” rather than just a basic income. He predicted that in a positive AI future, there would be no scarcity, except for what society defines as scarce. In such a scenario, everyone could have access to the goods and services they desire. However, he also acknowledged that finding meaning in a world where work is optional would be a challenge, suggesting that humans might still play a role in giving AI meaning.
Finally, during his speech at VivaTech in May 2024, Musk speculated about a “benign scenario” where none of us would have traditional jobs. He envisioned a world with universal high income and no shortage of goods and services. The central question, according to Musk, would be about finding meaning in life if computers and robots could perform all tasks better than humans. He proposed that humans might still have a role in giving AI purpose and meaning.
Musk’s advocacy for UBI highlights both the potential benefits and the challenges of an AI-dominated future. While UBI could provide financial security and more leisure time, it also necessitates a rethinking of societal values and the role of human labor. As automation continues to advance, Musk’s insights offer a crucial perspective on preparing for a future where work and income are fundamentally redefined.