US EconomyApr 18, 2026, 12:45 AM ETTBT, TLT, TMV, IEF, SHY, TBF, EDV, TMF, PST, TTT, ZROZ, VGLT, TLH, IEI, BIL, TYO, UBT, UST, VGSH, SHV, VGIT, GOVT, SCHO, TBX, SCHR, GSY, TYD, VUSTX, SYSB, GBIL, UDN, USDU, UUP, RINF, AGZ, SPTS, FTSD, LMBSAmerican Institute For Economic Research2.16K FollowersCommentsElon Musk claims AI-driven growth could fund UBI transfers without inflation. But relative prices - not just totals - still drive economic allocation.Musk argues that AI-driven production will expand so rapidly that it will outpace growth in the money supply, rendering such payments non-inflationary and potentially even deflationary.Distributing new money, even in a high-productivity environment, reallocates claims on output and can distort sectoral incentives and investment.The economic reasoning underlying the claim, however, is where the argument begins to break down. Issuing money - even in a high-productivity environment - does not create income in any real sense. It redistributes claims on output.Galeanu Mihai/iStock via Getty ImagesBy Peter C. EarleElon Musk claims AI-driven growth could fund UBI transfers without inflation. But relative prices - not just totals - still drive economic allocation.Recent remarks by Elon Musk have reignitedThis article was written byAmerican Institute For Economic Research2.16K FollowersAIER educates Americans on the value of personal freedom, free enterprise, property rights, limited government and sound money. Our ongoing scientific research demonstrates the importance of these principles in advancing peace, prosperity and human progress. www.aier.orgFounded in 1933, AIER is a donor-based non-profit economic research organization. We represent no fund, concentration of wealth, or other special interests, and no advertising is accepted in our publications. Financial support is provided by tax-deductible contributions, and by the earnings of our wholly owned investment advisory organization, American Investment Services, Inc. (https://www.americaninvestment.com/)Comments