Elon Musk published a post in which he called a “universal high income” in the form of federal checks the best response to unemployment that will be driven by advances in AI and robotics.
Why This Is Not UBI
Musk draws a clear distinction between his concept and classic UBI — universal basic income. The key word is “high”: he is not talking about subsistence-level support, but payments large enough to genuinely replace lost wages.
In his view, inflation will not follow. Prices are a function of the ratio between goods and money, and if AI dramatically increases production, issuing more money simply restores balance rather than devaluing the currency. In follow-up replies, he also acknowledged the opposite: if robots fail to deliver a sharp increase in output, the argument no longer holds. But if they do, governments will have to distribute money, otherwise the economy could be hit by deflation.
Audience Reaction
The post immediately split the audience. Some argued that inflation would be inevitable.
“Great, now everyone’s a millionaire — and a computer costs $20,000, because every seller knows it,” one user wrote.
Others pointed to a structural issue.
“First close the tax loopholes so corporations actually pay taxes,” another participant demanded.
They noted that in 2025, at least 88 major U.S. companies earned more than $105 B before taxes but paid nothing in federal taxes. The list includes Disney ($8.3 B), Tesla ($5.7 B), CVS, and Palantir.
A more philosophical critique also emerged: money without work strips life of meaning. Work provides a sense of purpose, and without it, people are left with unlimited free time and no structure — something unlikely to end well for society.
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