AI Job Destruction Prompts Silicon Valley Libertarians To Consider Universal Basic Income

AI Job Destruction Prompts Silicon Valley Libertarians To Consider Universal Basic Income

Artificial intelligence (AI) is starting to leave a significant mark on workplaces, potentially becoming one of the most transformative changes since the Industrial Revolution.

While it promises to increase efficiencies and profits, there’s a considerable debate about its impact on jobs, with concerns about job losses as AI takes over tasks previously done by humans.

Some Silicon Valley leaders, despite their belief in free-market principles, are considering universal basic income (UBI) to help cushion the blow of these expected labor market disruptions.

UBI involves giving everyone a fixed monthly payment, regardless of their employment status. This idea is being revisited as the effects of AI become more widespread and profound.

Trials and studies have examined UBI’s effectiveness. The Guaranteed Income Pilots Dashboard collects data from over 30 U.S. UBI test programs.

Findings suggest that over 43% of monthly payments are spent on essentials like food, housing, and healthcare.

Transportation accounts for 9.4%, and general retail and services take up 36%, suggesting many essential costs fall into this category too. Only 3.7% is spent on leisure activities.

Research shows that UBI can have a major positive impact on those near the poverty line.

Many recipients report being able to make timely payments, experience lower anxiety levels, and see improvements in mental health. This newfound stability allows some to seek job retraining, return to school, or even start their own businesses.

AI is expected to disrupt all sectors of the labor market, making UBI a topic of interest even among those who currently earn comfortable incomes. Silicon Valley, the heart of AI development, sees significant backing for UBI trials from its tech leaders.

Influential proponents include Elon Musk, Jack Dorsey, Marc Benioff, and Chris Hughes, among others. Various tech sector organizations have also contributed funds to public-private UBI trials.

Sam Altman, CEO of OpenAI, has been a notable advocate for UBI. He’s invested heavily in research exploring how UBI could work in mitigating AI-driven job losses and economic changes. He believes that achieving equal opportunity requires some guaranteed income for everyone.

Funding UBI is a critical challenge. Pilot programs have used a mix of public funds and private grants. For example, Oregon is considering a proposal to introduce a $750 annual UBI for residents, funded by a 3% tax on businesses with over $25 million in revenue.

This kind of approach faces significant opposition in some states, where even testing UBI might be difficult due to political resistance.

Political dynamics significantly influence the feasibility of UBI initiatives across the U.S. States with more progressive policies are more likely to adopt or at least trial such programs.

However, perspectives might shift if the impacts of AI on employment grow as predicted.

Elon Musk has forecasted that universal income would become necessary as AI takes over most human jobs.

Although his political views have evolved, and he now predicts a future with “universal high income,” his underlying acknowledgment that AI will profoundly alter the job market persists.

As the debate continues, many see modest UBI payments as a more realistic scenario for managing the economic transition to an AI-powered society.

Picture of Adrian Volenik

Adrian Volenik

Related articles

Most read articles

Get our articles

The latest Move news, articles, and resources, sent straight to your inbox every month.