December 27, 2025 – On December 25, Elon Musk, the CEO of Tesla, made a bold economic forecast on the X platform. He claimed that humanity is on the verge of entering the “post-scarcity” era, where poverty and hunger will completely vanish under a new economic model.
The concept of “post-scarcity” refers to a hypothetical future economic state. In this state, the production costs of most goods, services, and information are extremely low, and they can almost be provided in unlimited quantities to meet everyone’s needs. In simple terms, there will be an abundance of everything, and people won’t have to worry about being unable to afford or obtain what they want.
According to the latest data from the U.S. Bureau of Economic Analysis, the annualized growth rate of the U.S. GDP in the third quarter reached 4.3%. In light of this, Marc Andreessen, a well – known venture capitalist, put forward the view that “the moment for growth has arrived.”
Musk reposted Andreessen’s tweet and pointed out that if “applied intelligence” is regarded as an indicator of economic growth, the U.S. economic growth rate is expected to soar to double – digits within the next 12 to 18 months. Moreover, it could even achieve an astonishing triple – digit growth driven by AI in about five years.
Applied intelligence means the practical application of artificial intelligence (AI) technology in specific production and service scenarios. It particularly combines artificial general intelligence (AGI) and autonomous robot technology. It’s not just smart programs on computers but “practical AI” that can operate robots and solve real – world problems.
In traditional economics, growth is limited by labor and capital. However, Musk believes that once AI can be scaled up like software and materialized into hardware robots, labor costs will plummet and eventually approach the extremely low cost of electricity. At that time, the GDP, as a measurement indicator, may even become outdated due to the extreme over – abundance of productivity.
For ordinary people, work will no longer be a mandatory means of making a living but will turn into an “optional” activity. Musk defines this transformation as the end of the industrial age and the beginning of the “intelligence age” defined by “abundance.”
