Money won't matter in 2036, says Elon Musk
What's the story
Elon Musk, the CEO of Tesla and SpaceX, has predicted that artificial intelligence (AI) will transform the global economy in the next decade. Speaking to The Economist's editor-in-chief Zanny Minton Beddoes, Musk said "money won't matter in 2036." He explained that if AI and robotics produce goods and services at an unprecedented scale, their abundance could render traditional monetary systems obsolete.
Economic shift
Musk's AI-driven economic vision
Musk explained to Beddoes that the value of money is directly tied to the availability of goods and services.
He posed a rhetorical question, "If robots and AI are providing more goods and services than any human could possibly consume, what do you need money for?"
This statement highlights his belief in a future where technological advancements could lead to an abundance of resources, potentially diminishing the role of currency.
Societal impact
Addressing societal challenges
The conversation also touched on potential societal challenges such as job losses, wealth inequality, and political instability.
Beddoes asked if governments would need "massive redistribution," higher taxes on capital, or even a universal basic income to support those displaced by AI.
Musk suggested direct financial support from governments could be a solution, saying "I think the Treasury should just simply issue people checks."
Economic predictions
Deflation over inflation?
Musk argued that traditional economic principles might not hold true in an AI-driven economy.
He said, "Inflation is simply the ratio of money to goods and services. If the output of goods and services increases dramatically... you can create money in the database."
This statement suggests a shift from inflation being a major concern to deflation becoming more prominent due to increased production capabilities brought by AI technology.
Personal conflict
Musk's mixed feelings about AI
Musk admitted he has mixed feelings about the future of AI, saying his perspective swings between optimism and fear.
"Honestly, if you ask me on any given day, even intraday, I've gone from exhilaration to terror regarding AI," he said.
This admission highlights the complexity of his views on this transformative technology and its potential implications for society.
Safety concerns
The unstoppable force of AI
Musk has previously argued that the question of whether we should continue to develop artificial intelligence is no longer up for debate, as the technology has progressed beyond the point where it can realistically be stopped.
The billionaire said efforts should instead be directed toward ensuring AI develops safely.
He also predicted that artificial intelligence could surpass the combined intelligence of all humans within roughly five years.