Part 8/12:
The Economic and Ethical Dilemmas
Market Dynamics and the Risk of Bubble Collapse
The recent surge in tech giants like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—often referred to as the “Magnificent Seven”—has driven the stock market to heights that some analysts believe may be unsustainable. If this apparent bubble bursts, questions about funding UBI and other social programs become even more pressing.
Yang argues that since AI-driven value creation is currently concentrated among a few corporations, redistributing some of that wealth through taxation could help fund social safety nets, including universal basic income. He emphasizes that even moderate UBI payments—around $12,000 annually—are affordable given the positive impact of AI on the economy.