The Large Cash Present panel discusses Elon Musk’s daring prediction that synthetic intelligence will make work optionally available and cash irrelevant within the close to future.
Elon Musk mentioned in a brand new interview that he thinks robotics powered by synthetic intelligence (AI) driving productiveness positive factors and output are the one option to deal with the greater than $38 trillion nationwide debt.
Musk mentioned in a podcast interview on “A Different Conversation with Nikhil Kamath” launched Sunday that the widespread deployment of AI and robotics are the one methods to deal with the big and rising nationwide debt.
“I think that’s pretty much the only thing that’s going to solve for the U.S. debt crisis, because currently the U.S. debt is insanely high,” Musk mentioned. “The interest payments on the debt exceed the entire military budget of the United States – just the interest payments, and that’s at least in the short-term going to continue to increase.”
“So I think actually the only thing that can solve for the debt situation is AI and robotics,” he added. “It probably would cause significant deflation because deflation or inflation is really the ratio of goods and services produced to the change in the money supply.”
NATIONAL DEBT SURPASSES $38 TRILLION MILESTONE FOR FIRST TIME IN US HISTORY AS SPENDING SURGES
Elon Musk sees AI and robotics remodeling the economic system within the years forward. (Chesnot/Getty Photographs)
Musk mentioned that as a result of AI and robotics may result in a major enhance in output, it might doubtless result in deflation – which is the reverse of inflation and leads to a lower within the value stage.
“If you have AI and robotics, and a dramatic increase in the output of goods and services, probably you will have deflation. That seems likely. Because you simply won’t be able to increase the money supply as fast as you can increase the output of goods and services,” he mentioned.
ELON MUSK PREDICTS WORK WILL BE ‘OPTIONAL’ IN COMING DECADES
Musk mentioned he thinks AI will push the expansion fee in items and companies output above the expansion within the cash provide within the subsequent few years. (Marc Piasecki/Getty Photographs)
The Tesla CEO was requested concerning the present stage of inflation, which stays elevated relative to the Federal Reserve’s 2% goal, and mentioned that AI hasn’t boosted productiveness sufficient but to trigger deflation.
“AI has not yet made enough of an impact on productivity to increase the goods and services faster than the money supply. The U.S. is increasing the money supply quite substantially with deficits that are on the order of $2 trillion, so you have to have goods and services output more than that in order to not have inflation,” he mentioned.
“We’re not there yet, but if you say ‘how long would it take us to get there,’ I think it’s three years. Probably three years – in three years or less, my guess is goods and services growth will exceed money supply growth in about three years,” Musk added.
MUSK PREDICTS ‘MONEY WILL STOP BEING RELEVANT IN THE FUTURE’ AS AI, ROBOTICS PROGRESS
Musk’s Tesla is specializing in growing AI-powered humanoid robots. (Costfoto/NurPhoto by way of Getty Photographs)
The tech billionaire additionally mentioned he thinks the proliferation of AI and robotics will remake the economic system and the financial system total.
“I think at a certain point you decouple from the sort of conventional economy if you have AI and robots producing chips and solar panels and mining resources in order to make chips and robots… You sort of complete that cycle, once that cycle is complete, I think that’s the point at which you decouple from the monetary system,” Musk mentioned.
Musk was requested if that is the way in which ahead for the U.S. addressing its nationwide debt, and the Tesla CEO famous, “In this future that I’m talking about, the notion of countries becomes sort of anachronistic.”
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“These are just what I think will happen based on what I see, as opposed to these are fundamentally good things, and I’m trying to make them happen,” he mentioned. “I think this would happen without me, whether I like it or not. As long as civilization keeps advancing, we will have AI and robotics at very large scale.”
