Could universal basic income be part of the solution in an AI economy?
The scale of the economic disruption caused by AI has led even conservative politicians to talk about universal basic income. But economists are not convinced, and campaigners think we need to ask deeper questions.
At Germany's 2026 Digital Summit, Chancellor Friedrich Merz was asked to address the potential need for a basic income if artificial intelligence renders hundreds of thousands of jobs obsolete. Merz initially responded cautiously but acknowledged that the impact of AI on the labor market would necessitate a serious discussion about economic stability.
Merz's comments contrast with his government's policies, which have emphasized increasing work hours and efficiency. The head of Germany's Federal Employment Agency, Andrea Nahles, warned that AI could cost the country 800,000 jobs in the next 15 years, while also predicting job creation. Karsten Wildberger, Germany's Minister for Digital Transformation, called for preparation for potential economic disruptions caused by AI, suggesting that an unconditional basic income could be part of the solution.
Campaigners welcomed Merz's and Wildberger's unexpected openness on the topic. While the concept of a basic income is not new, it has gained renewed attention from prominent tech figures like Elon Musk and Sam Altman. However, critics argue that the tech industry's perspective on a basic income is driven by a desire to offset the loss of profitable jobs.
German economists remain skeptical about the feasibility of implementing a universal basic income, citing high social welfare costs and the need to fund existing commitments like pensions.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
