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Could universal basic income be part of the solution in an AI economy?

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 the German government's 2026 "Digital Summit" in early November, Chancellor Friedrich Merz was asked by a journalist to square a difficult economic circle: If artificial intelligence could make hundreds of thousands of people redundant in the next few years, might it become necessary for the government to give people a basic income to ease the ensuing economic disaster?

Surprisingly, Merz didn't respond with a flat dismissal — as might be expected from a conservative politician known for his neoliberal, market-friendly views.

"I've always been a bit cautious about this issue in recent years," he said, as reported by the news outlet RND. "However, I'm also well aware that the issue of AI will change our working world so fundamentally that we'll have to give serious thought to many of these issues in the coming years — including the question: Is our productivity not good enough?"

What makes this ambiguity notable is that much of Merz's policies since becoming chancellor last year have involved making Germans work more: His government's planned pension reforms would see Germany's retirement age being raised. In July this year, he announced a crackdown on sick leave. And in spring last year, having barely taken office, he caused much consternation by criticizing the concept of a "work-life balance"

In brief

At the German government's 2026 "Digital Summit" in early November, Chancellor Friedrich Merz was asked by a journalist to square a difficult economic circle: If artificial intelligence could make hundreds of thousands of people redundant in the next few years, might it become necessary for the government to give people a basic income to ease the ensuing economic disaster?

This is the opening of the story, shared with credit to DW — Top stories. The rest of the report — with every detail — continues on the publisher’s website.

Continue reading at DW — Top stories ↗

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