Mark Cuban says governments and businesses need to confront the economic fallout of robotics and automation now, warning that ignoring public anxiety could lead to political and national instability.
In a new post on X, Cuban warns that the rapid spread of robots and collaborative robots (cobots) will force a reckoning over how productivity gains are shared, calling for early discussion of a robot tax tied directly to usage.
“We need to start discussing now what a robot tax looks like. I like a straight amount per hour of use, per robot or cobot. Doesn’t matter what the shape or form is.”
He says critics will inevitably argue that taxing robots would undermine global competitiveness, but warns that every country faces a larger risk if economic dislocation is left unaddressed. According to Cuban, the cost of instability would far outweigh the burden of taxation on automation.
“And start coming up with the responses to the inevitable ‘we won’t be able to compete economically with other countries’ robots.’ Every country will face the prospect of national instability if the economics get out of whack, which is far more expensive than what you are paying in taxes on your robots.”
Cuban highlights that his comments apply to physical automation rather than software agents.
“I didn’t say agents. I said very specifically, robot or cobot. By the hour.”
He also emphasizes that political consequences are being underestimated by investors and business leaders focused solely on financial returns.
“While you search for alpha, those people who don’t know what alpha is, and are just worried about paying their bills, vote. They are smart enough to know that ‘trickle-down economics’ hasn’t worked for them. And they will vote accordingly. This will create far greater risk for your economics than anything we can imagine right now.”
Cuban says policymakers and business leaders still have a choice between proactive planning and reactive crisis management.
“You can address the inevitable productivity revolution proactively, anticipating how those who fear it will respond, or we deal with the consequences, which is far more expensive.”
Recently, billionaire venture capitalist Chamath Palihapitiya said that the tech industry is facing a public perception crisis as narratives about massive job losses grab headlines. He called on other billionaires to reinvest their fortunes into society or risk witnessing public backlash.
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