Andrew Yang warns AI may intensify economic inequality at 'epic scale'

AI-related layoffs are currently affecting the American job market, and previous presidential hopeful Andrew Yang believes the consequences could be massive.

In an interview on The New York Times' "Hard Fork" podcast, Yang remarked that this technology, in conjunction with the existing state of the American economy, could result in "inequality on a massive, never-before-seen level."

"We're on the brink of seeing our first trillionaire. The elite in American society will become wealthier and wealthier. It's going to build upon itself," Yang stated.

"Meanwhile, countless families will be left questioning what went wrong. My children worked hard academically, but there are no jobs, they have student debt, and they're living in my basement, feeling discouraged."

He indicated that a basic income policy will be "essential" to tackle these problems. A universal basic income — a system where the government provides regular, unconditional payments to all citizens — formed a significant component of Yang's 2020 presidential platform.

He proposed the Freedom Dividend, a universal basic income initiative that would have provided $1,000 monthly to every American adult without restrictions.

Yang faced opposition at the time from some political representatives, such as Democratic Sen.

Bernie Sanders, who proposed guaranteed government jobs as a solution to job displacement due to automation.

Political representatives are divided on basic income. While some argue it can enhance economic stability, others fear it might discourage Americans from working and be costly to implement.

Numerous Big Tech industry leaders have supported basic income schemes in response to AI's impact on the workforce.

Tesla's billionaire founder Elon Musk, a strong proponent of basic income, recently remarked that a "universal high income" would be the ideal solution for AI-driven job loss.

"AI/robotics will produce goods & services much greater than the increase in the money supply, preventing inflation," Musk elaborated on X this month.

During his conversation, Yang asserted there should "100%" be a tax on AI, which could help even out disparities in income in the US economy.

"The proceeds should be allocated to individuals and workers in various manners. We need to explore ways to move away from taxing human labor," Yang mentioned.

He continued, "So tax AI. Tax the robots. Avoid taxing people."