Elon Musk Says Technological Advances Will Produce Mass Abundance In the Future. Then, Treasury Should Send Americans Checks

Elon Musk said that the U.S. Treasury should send direct payments to Americans in the future, arguing that advances in artificial intelligence could make work largely optional and fundamentally reshape how wealth is distributed.

Speaking in an interview with The Economist, Musk said AI would eventually perform virtually every job better than humans, leading to what he described as "universal high income" rather than universal basic income. He also argued that deflation could become the bigger economic challenge as AI dramatically lowers the cost of producing goods and services.

The comments represent a notable shift from Musk's recent role in the federal government. Earlier this year, he led the Department of Government Efficiency (DOGE), an initiative established to reduce government spending and streamline the federal workforce. During his tenure, the department targeted major spending reductions through agency restructuring, workforce cuts and the elimination of some government contracts.

While DOGE reported billions of dollars in projected savings, federal spending continued to rise during that period. Budget data from the U.S. Department of the Treasury shows overall federal outlays increased as mandatory spending programs continued to account for much of government expenditure, limiting the impact of administrative cost-cutting efforts.

Musk suggested that future economic policy may need to shift away from focusing primarily on spending reductions if AI significantly boosts productivity. Instead, he argued that governments may eventually need mechanisms to distribute the benefits created by increasingly autonomous technologies.

His prediction that AI will lead to deflation contrasts with several current economic indicators. The Federal Reserve reports that the U.S. money supply remains historically elevated, while consumer confidence has weakened in recent months amid concerns over inflation, borrowing costs and broader economic uncertainty. Meanwhile, inflation remains above the Federal Reserve's long-term target despite easing from the highs reached in 2022.

During the interview, Musk also discussed his personal tax burden, saying he currently pays roughly 45% in taxes and expects a substantial portion of his wealth to be taxed in the future. He added that he has no objection to paying those taxes, arguing that his focus is on ensuring technological progress ultimately benefits society.

While some economists have argued AI could eventually support new forms of income distribution, others maintain that the technology is more likely to transform existing jobs than eliminate the need for human work altogether.