Summary
Economist Nouriel Roubini, known for predicting the 2008 financial crisis, says artificial intelligence will replace many jobs in the next 20 to 25 years. He believes this will force governments to provide universal basic income or move toward some form of socialism. Roubini calls this prediction optimistic because it assumes huge economic growth and machines doing most of the work.
Main Impact
Roubini’s warning focuses on how AI will change the way people work and earn money. He says raising the retirement age will not be enough to fix problems like Social Security funding. Instead, governments will need to give money to everyone, either through universal basic income or by taking ownership stakes in big tech companies. This shift, he argues, is already starting to happen.
Key Details
What Happened
In a Bloomberg TV interview on July 18, 2026, Roubini was asked about fixing Social Security. He replied that AI and robots will replace a large part of the workforce within two decades. He said universal basic income is the only way to support people who lose their jobs to machines.
Important Numbers and Facts
Roubini predicts that AI will boost economic growth from 2% to 4% by the end of this decade, then to 6% by 2040, and 10% by 2050. He believes AI will reach artificial general intelligence, meaning it will match or beat human thinking. He also mentioned that OpenAI has discussed giving 5% of the company to the public, which could be a model for sharing AI profits.
Background and Context
Universal basic income is not a new idea. Tech leaders like OpenAI CEO Sam Altman have suggested it before, though Altman has since backed away. The U.K. government is also looking at universal basic income to help workers in industries where AI threatens jobs. Roubini’s view adds weight to these discussions because he is a well-known economist who correctly predicted the 2008 crash.
Public or Industry Reaction
Roubini’s comments have drawn attention because he is usually seen as a pessimist. He insists his AI prediction is optimistic, since it assumes strong economic growth and less human labor. Elon Musk has made similar predictions, saying work will become optional in less than 20 years. Some people worry about losing jobs, while others see AI as a chance to reduce work hours and improve life.
What This Means Going Forward
If Roubini is right, governments will need to plan for a future where many jobs are done by machines. This could mean new taxes on tech companies or direct payments to citizens. It also raises questions about how to share the wealth created by AI. The next few years will show whether countries move toward universal basic income or other forms of support.
Final Take
Roubini’s prediction is not about doom, but about preparing for a big change. He believes AI will bring huge benefits, but only if society shares them fairly. Whether through universal basic income or government stakes in tech firms, the way we think about work and money may need to change.
Frequently Asked Questions
What is universal basic income?
Universal basic income is a system where the government gives a fixed amount of money to every citizen, regardless of whether they work. It is meant to provide a safety net, especially when jobs are lost to automation or AI.
Why does Roubini think universal basic income is needed?
Roubini says AI and robots will replace many jobs in the next 20 to 25 years. He believes raising the retirement age will not solve the problem, so governments must give people money to live on, either through universal basic income or by taking ownership in tech companies.
Is universal basic income already being tested?
Yes, some countries and cities have run small tests of universal basic income. The U.K. government is also considering it for workers in industries affected by AI. However, no large country has fully adopted it yet.
