elon muskImage Credit source: Symbolic photo
Elon Musk, one of the world’s most famous billionaires, has given the idea of a universal high income to deal with increasing unemployment in the era of Artificial Intelligence (AI). According to him, if the government gives a fixed income to all the citizens, then those who lose their jobs due to technology can get security. But this thinking has been completely rejected by India’s well-known economist Sanjeev Sanyal. He believes that any such experiment can put a country’s economy under great pressure and ultimately lead to bankruptcy.
Amidst the rapidly increasing impact of AI and automation, Elon Musk has advocated a universal high income model. He says that in the future, machines and robots will produce more than humans, which will lead to a glut of goods and services. In such a situation, if the government gives income directly to the people, then they will be able to fulfill their needs and the economy will also remain balanced.
However, Sanjeev Sanyal does not agree with this idea. He believes that this thinking ignores many basic economic principles. According to Sanyal, history is witness to the fact that every new technology initially appears to eliminate jobs, but with time it also creates new opportunities. Therefore, assuming that AI will permanently eliminate jobs is a misconception.
He is so wrong on this. AI will certainly cause dislocation, but like all technology it will also create new jobs and opportunities in the medium term. AI and robots will also not produce goods and services in excess of money or demand that there will be no inflation. Both of https://t.co/XAn86JslQN
— Sanjeev Sanyal (@sanjeevsanyal) April 17, 2026
Statement on inflation not increasing?
Sanyal also challenged Musk’s argument that more production will not increase inflation. According to him, the balance of demand and supply is not so simple. If the government starts giving income to the people on a large scale, it will increase the financial burden and the fiscal deficit may go out of control. He also said that there is no fixed limit to jobs and demand in the world. Examples from the 19th and 20th centuries show that as technology increased, new industries and jobs were also created.
According to Sanyal, the real strength of any economy lies in its flexibility. Easy bankruptcy process, strong market system and policies that promote innovation prove to be better in the long run. According to him, with every new technology comes risk, but the successful economy is the one which learns from failed experiments and moves forward and does not depend on huge experiments like providing permanent income to all.
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