Elon Musk predicts AI will make money irrelevant by 2036, says deflation will replace inflation – Firstpost
Tesla and SpaceX CEO Elon Musk believes artificial intelligence could fundamentally reshape the global economy within the next decade, predicting that “money won’t matter in 2036” if AI and robotics make goods and services overwhelmingly abundant.
Speaking to _The Economis_t editor-in-chief Zanny Minton Beddoes, Musk argued that the value of money depends on the availability of goods and services.
“You want money for goods and services… If robots and AI are providing more goods and services than any human could possibly consume, what do you need money for?”
However, Beddoes questioned how societies would transition to such a future, raising concerns over job losses, wealth inequality, and political instability.
She asked whether governments would need “massive redistribution”, higher taxes on capital, or even a universal basic income to support people displaced by AI.
Responding,
Musk suggested governments could directly provide financial support.
“I think the Treasury should just simply issue people checks.”
When Beddoes warned that printing money could fuel inflation, Musk disagreed, arguing that traditional economic assumptions may no longer apply in an AI-driven economy.
“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.”
Musk went a step further, predicting that deflation—not inflation—would become the bigger challenge.
“I’ll make a prediction, which is that deflation will be the issue, not inflation.”
Despite acknowledging Musk’s economic argument, Beddoes remained sceptical about the political realities of reaching such a future.
She warned that widespread fear of AI-driven job losses could trigger political backlash, including nationalisation, steep tax hikes, and economic disruption.
“I’m really hung up on how we get from the current polarized, angry, fearful polity we have now to this nirvana.”
Musk admitted he remains deeply conflicted about AI’s future, describing his outlook as constantly shifting between optimism and concern.
“Honestly, if you ask me on any given day—even intraday—I’ve gone from exhilaration to terror regarding AI.”
The conversation highlighted both the transformative promise of AI and the profound economic and political questions that remain unresolved.
Musk predicts superintelligent AI
Musk has suggested that the question of whether artificial intelligence should continue to evolve may no longer be open for debate, arguing that the technology has advanced beyond the point where it can realistically be stopped. The billionaire said efforts should instead be directed towards ensuring AI develops safely. While recognising that powerful AI systems carry significant risks, Musk maintained that their potential benefits for society could ultimately outweigh the dangers, provided the focus remains on minimising harmful outcomes rather than attempting to halt progress.
The Tesla and xAI chief predicted that artificial intelligence could surpass the combined intelligence of all humans within roughly five years.
