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Elon Musk made headlines Friday when he suggested that the federal government paying a “universal high income” to Americans is the best way to combat AI-related job losses.
“Universal high income through checks issued by the federal government is the best way to address AI-induced unemployment,” Musk said in a post on his X Platform shortly after midnight Friday.
This proposal is still pinned to the top of his X account, but he rejected the idea that such payments would be inflationary.
“Inflation will not occur because AI/robotics will produce far more goods and services than the increase in money supply,” he wrote.
Andrew Yang will donate $1,000 per month to 20 Americans to promote UBI
Elon Musk, CEO of SpaceX and Tesla and a South African, Canadian and American businessman, speaks at the World Economic Forum (WEF) annual meeting in Davos on January 22, 2026. (Fabrice Coffrini/AFP via Getty Images)
However, many economists disagreed.
“He is completely wrong on this point,” wrote Sanjeev Sanyal, former chief economic advisor to India’s finance minister.
“AI will certainly cause disruption, but like any technology, it will also create new jobs and opportunities in the medium term. AI and robots will not produce goods or services beyond money or require non-inflation,” he wrote in X.
“Elon Musk’s universal high income will bankrupt any government that tries it,” he concluded.
Tesla CEO Elon Musk attends a memorial service for political activist Charlie Kirk at State Farm Stadium in Glendale, Arizona on September 21, 2025. (Win McNamee/Getty Images)
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Another skeptic, Pratyush Rai, co-founder and CEO of Merlin AI, agreed.
“The basic math around UHI (universal high income) doesn’t add up. If everyone received a high income check, everyone would be competing for the same homes, land, schools, and lifestyle,” he wrote on X.
But some are hopeful that the plan may have merit.
Former Democratic presidential candidate Andrew Yang also expressed lukewarm support. Yang, who promoted a similar idea for universal basic income (UBI) during his 2020 campaign, tweeted: “It’s clear that AI will fund universal income. Let’s make it happen as soon as possible.”
Andrew Yang will participate in the “From Government to Business: Urgent Needs for AAPI Leadership” panel during the TAAF Heritage Month Summit at the Glass House in New York City on May 5, 2023. (JP Yim/Getty Images for Asian American Foundation)
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Universal High Income (UHI) is a major advance from Yang’s UBI. Although UBI serves to support an individual’s basic needs while continuing to work, many proponents of UHI advocate a complete withdrawal from the need to work.
