Economist calls Elon Musk's Universal High Income plan fiscally reckless amid AI job losses

Economist Slams Musk's Universal High Income Plan To Combat AI Job Losses As Fiscally Reckless -- 'He Is So

Sanjeev Sanyal, an economist and senior policy adviser to the Indian government, has pushed back sharply against Elon Musk's proposal to address AI-driven unemployment through universal high income, calling it economically flawed and fiscally dangerous. A Plan Built On Faulty Assumptions The idea aligns with Musk's broader view that AI and robotics could eventually eliminate scarcity. In earlier posts, he suggested these technologies could make everyone wealthy and described a future where traditional work becomes optional. Sanyal flatly rejected both claims. 'Wrong On This,' Says Sanyal "He is so wrong on this," Sanyal wrote on X, arguing that AI will cause short-term disruption but ultimately create new jobs and economic opportunities, as has occurred with past technological shifts. He also challenged what economists describe as the "lump-of-labour" fallacy, the assumption that economies have a fixed number of jobs and a fixed ceiling on demand. By that logic, he noted, modern wealth creation since the 19th century would have already eliminated employment and inflation. On inflation, Sanyal dismissed the idea that AI-driven abundance would automatically neutralize price pressures. A Fiscal Warning The sharpest rebuke was fiscal. Sanyal warned that Musk's universal high-income proposal "will bankrupt any government that attempts it." The IMF's latest World Economic Outlook separately warned that high public debt and weakening institutional credibility are heightening vulnerabilities across global economies. In the first quarter of 2026, employers announced over 27,000 AI-linked job cuts, a 40% rise year-on-year, per Challenger, Gray & Christmas. Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors. Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Elon Musk Backs Universal High Income to Offset AI Job Losses

Elon Musk revives the universal high-income idea, argues government payouts can offset AI-driven job losses while ensuring economic balance, even as critics question the feasibility, fairness, and long-term impact on work, productivity, and society Elon Musk has revived his long-standing idea of a 'universal high income' to address job losses driven by artificial intelligence. In a post on X, Tesla CEO Elon Musk argued that government-issued payments could support people displaced by automation. Musk claimed such a system would not trigger inflation. He said AI and robotics would produce goods and services at a scale that outpaces any increase in money supply, balancing economic impact.