Elon Musk has drawn heavy criticism for suggesting that a 'universal high income' program should be implemented to provide benefits to those laid off by AI.



Meta laid off approximately 10% of its employees in March 2026 due to rising AI costs, and there are many other cases where the introduction of AI is causing human employees to lose their jobs. Elon Musk has proposed a 'universal high income' system, where the government provides subsidies to those who significantly improve industrial productivity through AI and robotics, as a way to address the unemployment problem caused by AI, but this has been criticized by X users and experts.

Elon Musk's mistaken call for a 'universal high income' if AI kills jobs
https://reason.com/2026/04/17/elon-musks-mistaken-call-for-a-universal-high-income/

Elon Musk proposes federal checks for AI job losses, economists disagree | Fox Business
https://www.foxbusiness.com/fox-news-tech/elon-musk-backs-universal-high-income-combat-ai-job-losses

Elon Musk floats 'universal high income' to offset AI-led job disruption - The Economic Times
https://economictimes.indiatimes.com/tech/artificial-intelligence/elon-musk-floats-universal-high-income-to-offset-ai-led-job-disruption/articleshow/130334752.cms

As AI is bringing about a major transformation in the economy, some politicians, policy experts, and technologists have long advocated for the introduction of a basic income to address the mass unemployment that will likely result from the AI revolution. The idea is that while the economy as a whole will become far richer as AI automates a large portion of all economic production, many people will lose their jobs and fall into poverty, so the government should redistribute a portion of the profits from AI to the public.

On April 17, 2026, Musk posted that 'a universal high income issued by federal checks is the best way to deal with AI-induced unemployment.' Basic income distributes the same amount to the masses, and there are concerns that distributing large amounts so that everyone can become wealthy will flood the market and cause inflation. However, according to Musk, AI and robotics will lead to the production of goods and services far exceeding the increase in the money supply, so inflation will not occur, and there will be a 'universally high income state.'




Even before his X post, Musk had frequently hinted at the possibility of AI ending the workforce. At the World Economic Forum in January 2026, Musk stated that 'AI and robotics could trigger an unprecedented expansion of the global economy, ushering in an era of material prosperity where machines meet most of humanity's needs.' Also, in a March 2026 post by Marc Andreessen, founder of venture capital firm Andreessen Horowitz, who denied concerns about massive job cuts due to AI and argued that 'technological progress has historically led to expansion, not contraction,' Musk replied , 'In the future, work will be an option.'

Musk's post drew criticism on X, with comments such as, 'Where will the government funds these payments come from?', 'Universal high income is a great idea if it becomes a reality, but who will control the AI that supports it?', 'If universal high income becomes a reality, it will mean the end of individual autonomy and freedom,' and 'This is high-tech socialism.'

Reason , an American libertarian monthly magazine, countered Musk's opinion by acknowledging that the idea that AI, as a technology that significantly improves productivity, would put downward pressure on inflation is correct, but argued that 'basic income is likely to increase unemployment.' Reason pointed out that when many people lost their jobs during the Industrial Revolution, most people took time to adapt to the transformed jobs or find new work, but if a large basic income were to intervene, it would create an 'unemployed dystopia' where people lose their motivation to work.

Sanjeev Sanyal, former chief economic advisor to India's Finance Minister, also posted on X: 'Musk's thinking is wrong. AI will certainly cause disruption, but like all technologies, it will also create new jobs and opportunities in the medium term. The idea that there will be no inflation because AI and robots do not produce goods or services beyond the money or demand is also wrong. These are typical mistakes made by people who think that the number of jobs to be done in the world is finite and the set of consumer demand is also finite.'




Pratish Rai, co-founder and CEO of AI company Merlin AI , also rejected Musk's vision on X, stating, 'We operate an AI product that serves more than one million users. From that experience, I can say that the idea that AI will automate almost everything is far from realistic.' In addition, Rai pointed out that 'universal high income' is impossible to achieve because if everyone is given a high income, everyone will end up competing for the same possessions and lifestyles.




Psychology professor Jeffrey Miller points out two problems with universal high income. First, the absurdity of the idea that 8 billion people worldwide would be eligible for benefits, given that mass unemployment due to AI could occur all over the world. Miller describes the vision of people living off benefits worldwide as 'transforming 8 billion people from productive and valuable citizens into eternal parasites suckling to the breast of the AI industry.' The second problem is that if the profits generated by AI companies continue to supply people with benefits, there is a concern that AI companies will manipulate governments and become too powerful. Miller states, 'This is not the path to prosperity, but the path to servitude.'




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