Billionaires urge AI complacency; workers should be wary, says Greenhouse

Tech billionaires are attempting to reassure Americans concerned that artificial intelligence will eliminate millions of jobs and create a permanent underclass, urging them not to oppose AI development.

Elon Musk, who recently merged SpaceX with his artificial intelligence company, joined the reassurance effort, telling people “don’t worry, be happy” about AI. Musk wrote last month that “Universal HIGH INCOME via checks issued by the Federal government” would rescue those displaced by AI.

Musk said AI would generate such enormous productivity gains and economic abundance that inflation would disappear and there would be no need to “worry about squirreling money away for retirement in 10 or 20 years.” He added: “Saving for retirement will be irrelevant.”

Sam Altman’s OpenAI issued a report last month stating: “The promise of superintelligence is extraordinary … [AI] will speed up scientific and medical breakthroughs, significantly increase productivity, lower costs for families by making essential goods cheaper, and open the way for entirely new forms of work, creativity, and entrepreneurship.”

Peter Thiel, the billionaire cofounder of Palantir, also sought to minimize AI worries, saying: “It’s more than a nothing-burger, and it’s less than the total transformation of our society.” Thiel added that without AI development, “the alternative is just total stagnation.”

As Americans fight to block new data centers nationwide, Musk and other tech billionaires aim to convince the public not to fear AI or oppose its expansion. But given these billionaires stand to make tens of billions from AI, their assurances warrant skepticism.

Concern is justified: Dario Amodei, Anthropic’s CEO, said AI could eliminate half of all entry-level white-collar jobs within one to five years and push the unemployment rate to 20%. Mustafa Suleyman, CEO of Microsoft AI, warned that most white-collar work “will be fully automated by an AI within the next 12 to 18 months.”

Beyond layoffs, AI deployment across industries will likely be used to control and surveil workers, pressuring them to boost productivity.

A Fox News poll found nearly one-third of Americans fear AI will eliminate their job within five years. But the Trump administration appears unconcerned. Donald Trump has embraced AI and expedited construction of data centers. Kevin Hassett, a top Trump economic adviser, downplayed job concerns, claiming AI is not costing anyone their jobs despite rising tech layoffs.

Young people entering the job market should be particularly worried and not take comfort in Musk’s promises of an economic nirvana. Many economists strongly disagree with Musk’s bullish predictions of super productivity gains and an abundance of goods and services.

It is wiser to heed Bernie Sanders’ warnings than Musk’s super-optimism. Sanders, the top Democrat on the Senate health, education and labor committee, issued a report saying AI could replace tens of millions of jobs and that the nation must take major steps to protect against AI’s harms.

“We cannot sit back and allow a handful of billionaire Big Tech oligarchs to make decisions that will reshape our economy, our democracy and the future of humanity,” Sanders said. “The time for action is now.”

In contrast, Musk suggests waiting a few years will bring untold prosperity. But the author sides with Sanders, arguing action is needed now to prevent millions of layoffs, increased inequality, and a new underclass. Even Amodei cautioned that AI may create “an unemployed or very-low-wage ‘underclass’.”

Some experts call AI the most far-reaching technological development in history. Bill Gates said: “Of all the things humans have ever created, AI will change society the most.” Preparation is needed, including a stronger safety net, as AI advances rapidly and mass layoffs may come faster than expected.

Musk’s talk of high-income checks for everyone sounds appealing but requires a compassionate president and Congress to enact such legislation. Musk and other tech billionaires helped elect rightwing politicians eager to shrink the social safety net; last year those politicians passed laws making it harder to receive food stamps and Medicaid without a job. So reliance on these billionaires to secure universal high-income checks is misplaced. Alexandria Ocasio-Cortez, a US representative working with Sanders on AI safeguards, said: “I am skeptical about [the billionaires’ and big tech companies’] willingness to pay or incur the taxes necessary to sustain such proposals.”

Several important steps can protect against AI’s harms.

The US should guarantee health insurance for everyone. Currently, health insurance is tied to employment; the threat of AI displacement argues for adopting universal health insurance, perhaps via Medicare for All, so workers losing jobs do not panic over losing coverage.

Wage insurance would help workers displaced by AI who move to lower-paying jobs, providing perhaps $10,000 a year as a wage supplement. It would offset lower wages and encourage job search. The US should also improve its flawed unemployment insurance system; Mississippi’s maximum benefit is $235 a week, Florida’s $275.

If AI eliminates millions of jobs, the US should create a New Deal-like Works Progress Administration to generate millions of jobs in infrastructure repair or childcare. Relying on the market to create enough jobs for displaced workers would be unwise.

Before AI wipes out many jobs, the US should upgrade job training programs to prepare workers for future roles in healthcare, construction, green energy, and other fields.

The US should legislate a 32-hour workweek at 40 hours’ pay to share productivity gains and reduce layoffs. If AI allows the economy to thrive with fewer hours, the US should mandate paid vacations: two weeks for new hires, three after two years, four after four years. (EU workers are guaranteed four weeks paid vacation.)

Universal basic capital would give Americans funds to share in AI-created wealth, possibly as shares in a universal investment fund given to every American at birth. Unlike universal basic income, this would provide corporate voting rights, giving the public a voice in running corporations and AI companies.

Seeing public anger at AI data centers, Sanders and Ocasio-Cortez called for a moratorium on building new data centers until Congress enacts basic protections. They hope such a moratorium could lead to bans on AI products that threaten privacy and humanity’s future.

AI companies and many billionaires will oppose any moratorium or meaningful limits. A powerful people’s movement is needed to fight for safeguards against AI’s vast potential dangers.

Steven Greenhouse is a journalist and author focusing on labor, the workplace, and economic and legal issues.