Elon Musk believes money could lose much of its importance by 2036 if artificial intelligence and robots make goods and services so abundant that human needs are easily met.
Speaking during an interview with The Economist Editor-in-Chief Zanny Minton Beddoes, the Tesla and SpaceX chief argued that the purpose of money would diminish in a world where AI can produce far more than people can consume.
"What do you want money for?" Musk asked. "You want money for goods and services... housing, transport, entertainment. If robots and AI are providing more goods and services than any human could possibly consume, what do you need money for in that case?"
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Beddoes pushed back, noting that investors who own Musk's companies may not share his view and questioned how societies would navigate widespread job losses caused by AI.
She asked whether such a future would require wealth redistribution through higher taxes on capital or universal basic income to support displaced workers.
Musk suggested governments could simply issue payments to citizens.
"I think that the Treasury should just simply issue people checks," he said.
When Beddoes argued that such a move would fuel inflation, Musk countered that traditional economic assumptions may not apply in an AI-driven economy.
"Inflation is simply the ratio of money to goods and services," Musk said. He argued that if AI boosts the production of goods and services at a much faster pace than the money supply grows, economies could instead face deflation.
"I'll make a prediction, which is that deflation will be the issue, not inflation," Musk said. "If the output of goods and services increases faster than the money supply, you will have deflation."
Despite his optimism about AI's long-term potential, Musk acknowledged the transition could be politically and socially turbulent.
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Beddoes questioned how democracies, already grappling with political polarisation and public anxiety, would cope with rapid technological disruption before reaching the future Musk envisions.
Responding to the concerns, Musk described AI as both exciting and unsettling.
"It's exhilarating and terrifying," he said. "Honestly, if you ask me on any given day, in fact, even intraday, I've gone from exhilaration to terror regarding AI."
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