Vance advocates for state ownership in AI giants, while Musk argues for direct cash handouts to citizens to counter future major deflation

Odaily Planet Daily News: U.S. Vice President JD Vance stated in an interview with "CEO Diary" that Trump supports establishing a U.S. sovereign wealth fund and holding equity in cutting-edge AI companies. Vance believes that large AI companies should not be allowed to develop into unchecked monopolies and advocates for mechanisms of state shareholding and labor participation, allowing ordinary workers to directly share in the economic dividends brought by AI.

In response, Musk publicly commented on the X platform, stating that a better approach than the government holding corporate equity is for the Treasury to directly distribute money to the people. Musk said that as AI and robots drive growth, the supply of goods and services will outpace the growth of the money supply. Therefore, direct cash handouts will not cause inflation; what the future truly needs to deal with is "major deflation."

The divergence between the two primarily concerns the path of wealth distribution. Vance leans towards distributing income through national participation at the production end, while Musk argues for directly subsidizing the people at the consumption end and opposes government intervention in the ownership structure of enterprises.