Elon Musk Predicts End Of Poverty, Says There's No Need To Save Money

Billionaire Elon Musk on Thursday remarked that while the upcoming 'Trump Accounts' initiative is a thoughtful idea, he believes saving money may become unnecessary in the future due to the rise of "universal high income." His comments were a reaction to billionaire investor Ray Dalio's support for 'Trump accounts'- a proposed initiative to seed investment accounts for newborns and young Americans.

Musk has previously expressed that advancements in artificial intelligence and robotics will eventually eliminate poverty and reduce the need for traditional work, leading to widespread wealth and financial stability. He also suggested that if AI and robotics continue to improve productivity at scale, money will eventually become irrelevant, similar to how oxygen is universally available.

"It is certainly a nice gesture of the Dells, but there will be no poverty in the future and so no need to save money. There will be universal high income," he wrote on X in response to Dalio's statement. 

See the post here:

It is certainly a nice gesture of the Dells, but there will be no poverty in the future and so no need to save money.

There will be universal high income.

— Elon Musk (@elonmusk) December 17, 2025

Despite these claims, Musk's comments have faced scepticism on social media, with many users highlighting the stark contrast between his $600 billion net worth and his advice to others not to save. Others questioned the incentive for production in a world where everything costs nothing.

One user wrote, "Eliminating poverty is a technological issue at its core. However, the human mind becomes accustomed to things very quickly. Relative poverty may be eliminated, but as long as humans exist, I suspect the poverty mindset will exist forever."

Another commented, "If everything costs basically nothing, what incentive does anyone have to make the stuff?"

A third said, "There may be universal income but there is never be universal high income because the goal post for "high" keeps shifting. For example, the quality of life considered "poor" in America has moved quite in a bit in one century."

Earlier this week, Elon Musk became the first person ever worth $600 billion, Forbes said, on the heels of reports that his SpaceX startup was likely to go public at a valuation of $800 billion. Musk, who was the first to surpass $500 billion in net worth in October, owns an estimated 42% stake in SpaceX, which is preparing to go public next year, Reuters reported last week. The SpaceX valuation would strengthen Musk's wealth by $168 billion to an estimated $677 billion, according to Forbes. 

Trump Accounts 

'Trump Accounts' is a new federal initiative introduced under US President Donald Trump that aims to provide American newborns with a financial head start. Under this programme, parents who open a Trump Account for their child will receive a one-time $1,000 contribution from the government. This amount will be invested in the stock market through a tax-advantaged account and is designed to grow over time, giving young adults a financial cushion when they turn 18.

The initiative seeks to promote long-term savings and investment habits from birth, potentially helping with major life expenses like college tuition, starting a business, or buying a first home. Parents will be encouraged to contribute additional funds over the years, though the initial government deposit is automatic once the account is opened.

Supporters argue the programme could help narrow the wealth gap by ensuring all children enter adulthood with some financial security. However, some raised concerns over the volatility of the stock market and whether such investments are appropriate or sufficient substitutes for broader social safety nets.