Elon Musk called for a federally funded “universal high income” to cushion workers from AI-driven job losses, arguing on X that rapid gains in AI and robotics output would offset inflationary pressures. Economists swiftly pushed back, warning the proposal’s math doesn’t hold and could strain public finances, with former Indian finance adviser Sanjeev Sanyal and startup executive Pratyush Rai among the critics. Andrew Yang, who championed universal basic income in 2020, offered guarded support, suggesting AI will ultimately underwrite some form of universal income. Musk’s pinned post highlights a widening debate over whether rising AI productivity can replace traditional employment without stoking inflation—and what safety net, if any, should fill the gap.
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