Elon Musk’s reasoning that AI and robots will make work optional is based on a core economic absurd argument: AI and robotics will create such an abundance of goods and services that the very concepts of work and money become largely obsolete. However, this vision also faces significant challenges and raises complex questions about the human desire for purpose. I was doing research in the Firestone Library at Princeton University. I became friends with one professor who had known Einstein.
He asked me what I was so intensely researching. I explained that I was trying to ascertain why all governments rise and then crash and burn throughout the centuries. He then said to me that I reminded him of Einstein. I was taken back. I said I was no Einstein. He then explained to me to me that the subject matter did not matter. It was curiosity that was the mother of all discovery. Without someone being curious, human society would stagnate.
During the late 1970s, I went through Check-Point-Charlie into East Germany. I wanted to see what Communism was all about and why they needed a wall to prevent people from fleeing. Those words from that professor suddenly rang true. The government feared individualism and curiosity. Because of that, the Russian economy could never compete with Capitalism because it suppressed the very essence of how human society advances. It requires that curiosity to make innovations that expands the economy and raises the standard of living.
Musk’s argument is rooted in what he sees as the logic of productivity and deflation. His reasoning can be broken down as follows.
- The core idea is that AI and robots will be capable of performing nearly all physical and cognitive labor at near-zero marginal cost . This would lead to a massive surge in the production of goods and services. However, it would be like Communism lacking that curiosity and this would suppress any advancement.
- The resulting supply would vastly outpace the available money supply, causing the prices of everything from food and housing to healthcare and education to plummet towards zero . For example, current productivity might see one worker produce 100 units per day, while one AI could produce 10,000, fundamentally breaking the link between work and survival.
In this state of “post-scarcity,” money, which Musk describes as an “information system for labor allocation,” would lose its purpose. If you can have anything you want without needing to direct someone else’s labor, he assumes that the currency system collapses. He has stated, “I think money will stop being relevant at some point in the future.”
To manage this transition, Musk proposes a “universal high income” (UHI), which goes beyond a basic safety net to ensure a comfortable life for everyone, funded by the massive surplus generated by AI and robots.
Hellbound and Down 