michael-dean-k/

Bernie wants to pull off a 50% one-time equity tax on the top 3 AI firms (OpenAI, Anthropic, xAI). This is ripe time for a mainstream populism to ride the tailwinds of AI populism, tapping into hatred and impending doom and the whole gambit of middle class paranoia, ripe time to propose a century-defining redistribution scheme. He opens by saying that AI was stolen from us, built from our collective intelligence, and therefore it's a national utility that the people should own. To ground it in reality, he used the Alaskan sovereign wealth fund as precedent, citing how citizens get paid annually from oil sales. We'll likely see many more of these proposals leading up to our 2028 election. But after you do some napkin math, you realize that this plan is bogus: no one would agree to it, and even if they did, it wouldn't benefit the American people.

This is citizen ownership in rhetoric, but government ownership in structure—a passthrough mechanism as a Trojan Horse with Pete Hegseth and the goons inside. Realistically, I don't think this is meant to be a serious proposal; the labs won't accept it. It's more so a gesture to buy goodwill for the Democrats at a time when mass hatred for AI is cresting.

Here are the issues I see with the concept (along with some grasping for solutions):

1_We don't need government equity, but guaranteed royalty distribution:

This is not a profit tax, but a way to formalize government seizure through an equity transfer. It even comes with board seats within thees AI companies. Remember, this is the same government that tried to force Anthropic to allow unrestricted domestic mass surveillance and autonomous weapons. The equity only gets to the citizens if the stock appreciates, they convert it to cash, and then decide to write welfare checks. Does our current government seem like a voluntary patron of citizen welfare right now? Will welfare checks beat Iran and China? And even if this were intended to be a passthrough mechanism, it would be very hard to make all that equity liquid.

The Alaska fund that Bernie mentioned is structured very differently. It's anchored not in equity, not in profits, but in revenue. 25% of Alaskan oil revenue goes to a constitutionally-protected fund, which is then reinvested into the stock market; the principle is locked and the dividend is split among citizens, usually $1-3k per year. Could a similar model work for AI companies?

This would never work with profits, because AI companies aggressively reinvest. In the short-term, an AI company would resist a revenue royalty because it would slow expansion, but: (1) if all companies did it, they wouldn't be disadvantaged; (2) it beats equity because they retain full control of their company; and (3) if they believe they'll be wildly profitable, then a 10% royalty is possibly more than half of what dividends would pay from 50% equity. So what could a 10% royalty return?

By the 2040s, annual AI revenue could be $20T globally across software, hardware, data centers, and energy. If America has half the market, and 10% is distributed to a citizen fund, that's a $1T annual budget, completely liquid. So how do you use it?

2_ We shouldn't redistribute equally, but strategically:

Alaska has 738,000 residents. The US has 350,000,000, almost 500x bigger. You can do equal distributions at the state level, but at the federal level it'd ineffective. When we talk about UBI or even Elon's UHI (universal high income), we need to realize that U doesn't work at scale beyond pilots. $1T distributed to every American citizen yields $2,857/year. This matches the upper-end of Alaskan payouts, but it's nowhere near what we need to account for AI-driven automation and disruption.

And so instead we need to be strategic over how we distribute it to cover the wide range of effects. Maybe 50% of the fund is reinvested, and the dividends are redistributed based on income (with most of it going to the bottom 10-25%). The other half can be used on housing, free medical diagnosis and prescriptions, free education, New Deal style jobs concentrated in areas that can't be automated (childcare, healthcare, etc.). Who decides this breakdown?

3.Instead of a cabinet agency, this needs an independent board:

If we want citizens to own AI, then we need some form of citizen representation to guide it's growth, otherwise it all devolves into technocratic expansion and war. You could imagine some kind of tripartite board structure, where it has government reps, industry reps, and citizen reps. Any single branch has a myopic set of interests, including the citizens. The citizen branch might undervalue national security or capability improvements, but without it, there's no one representing the problems that hundreds of millions will face.

What I'm reaching at here, I think, is that it's more than just getting a check for theoretically contributing to the LLM hivemind. There's something important to me, as a citizen, to have some say in where AI royalties are redirected. Whether I participate simply as a voter, or I work hard and get anonymously elected to represent my state for a single issue within a liquid republic, who knows. And again it goes beyond just getting and allocating money, but this board should be involved in AI-related policy, especially as it relates to domestic matters.

It's unlikely that power will just be granted to citizens, for they have no leverage next to the ones with the tanks and algorithms. But as the governors and technocrats quarrel, there's a world where a mediating party comes in, and maybe it's their role to insist that a citizen branch can help round out the dynamic.

This last point has basically veered into redesigning government itself, which is both out of scope, but also, possibly, exactly the point. Bernie's whole play is to let the people own AI, but for that to actually expand beyond populist rhetoric, citizens need a more meaningful way to engage with civic matters than to vote for a president once every four years, they need actual representation.

Universal basic income is a basic phrase. It’s only one of several approaches to reattribute wealth after our social contract nullifies.

One alternate idea is universal basic compute (UBC), which is about giving everyone free access to the most powerful AI models. Sam Altman recently said that UBI might not work, and we should try UBC instead. This is even more unlikely to work. Giving someone Claude Mythos, the killer model, doesn’t mean they can turn prompts into dinner. Access doesn’t guarantee results. It faces similar odds as entrepeneurship. But maybe it has enough agency so all you have to do is write “make me $10,000 this week”—in that case, everyone will run it, and then it’ something like a lottery, where some machines happen to beat other machines.

The more likely route is universal basic services (UBS), where a government or company provides you, for free, all the things you used to need money for: healthcare, education, housing, transportation, food. The engineering elite will harness their superintelligence to achieve such radical efficiencies that the cost of everything will crater. Maybe it's cheap enough to become a trivial expense. This is a nice idea, one where I can imagine myself focused completely on my art, with no need to slave away for a wage anymore. It’s also science fiction. I don’t doubt that this can happen in 20 or 30 years, but labor shock is coming a lot faster (in less than 5), meaning there will be a transition generation of turbulence.

Then there’s universal basic dividends (UBD) and universal basic equity (UBE), in which citizens get shares of collectively-owned assets, like shares in a frontier AI lab or robotics company. OpenAI was originally set up for something like this, until it weaseled out of it’s non-profit entity.

All of these have the same critical flaw, the U. Whether it’s a government or company, you can’t meaningfully redistribute to 7 billion people without destroying the parent entity. Instead, we may be looking down the barrel of a new definition of labor, less focused on productive output, and unfortunately, more so on data and attention, what a citizen truly has to offer in the eyes of a state. We'll find something to exchange for the money and services to flow down, but it won’t be unconditional. I suppose a contract, by definition, is never unconditional, and so neither should a social contract.

Revolutionary tax proposal #1: anything above $100m/year is taxed at 90%, but in exchange for political equity in the country (ie: delegation and voting). It formalizes lobbying and makes it transparent. To prevent the rich from steering the country too hard in their favor, there can be provisions where legislators, citizens, and oligarchs have checks and balances. Ie: to put it kidishly simple, each can have a 33% stake in directing that taxation. Another way to think of it is forced investment in pre-approved pro-American funds, companies, etc.

TBF: I have little sense of what I'm talking about in these matters. But the general context behind this is that power dynamics organically took control of the country and defied the spirit of the founding architecture. I assume there are many examples on how the Constitution and it's amendments dit not protect the original vision. And so the principal is to understand how power actually moves and work with it; don't kill it or shun it, but formalize it into legal structures, make it transparent, and then force it to comply with specific standards that muzzle and channel it's wolf power.

Anti-AI sentiment is escalating: the Pause AI movement, state-level data center bans, molotov cocktails at Sam Altman's house, artists going to dumb phones, witch hunts for AI prose. Protesting and boycotting AI, at a personal level, is the exact wrong approach. It misunderstands the Luddites. They were not against the machines in principle, they were against the factory owners not sharing the profits of the factory. This is possibly about to play out a grand scale: AI and robotics labs could capture nearly all economic value, and there will be a plea to nationalize these companies and redistribute the profits.

While the scope and effects here are way bigger, the workers of the Industrial Revolution were far more disempowered. You couldn't "just do things." You could operate someone else's machine, but you couldn't just spin up a competing factory; that required land, resources, labor, none of which you had. There was just a certain amount of capital needed to compete, and it wasn't possible. Workers were limited to being workers, so they had no choice but to revolt with violence.

The difference today is that the worker and artist suddenly have access to build-your-own-factory tooling. A single person for $100/month can compete with companies valued in the millions and billions. It's asymmetric labor. Regular people can build civilization scale infrastructure, distribution labels, social media engines, software, etc. Never before has there been a democratic opportunity for people to self-organize into their own collectives, tribes, governments, and whatnot.

At least to me, this kind of optimism—principled, delirious, ambitious, but still careful and skeptical—is better than the cynicism of the "resist" factions. There is nothing you or your circles gain by putting your head in the sand; it brings a distanced, crabby, virtue-signaled posture that does nothing to change the actual situation. You gain nothing by staying on the ChatGPT free plan on default settings and complaining no how it's an ineffective, incapable, sycophant. It requires an ounce of nuance, to be critical of how the labs act, but to then use that lab's best tools towards your own sovereignty and vision.

I think what I'm trying to get at here is that the Luddites of the 21st-century will not be reverting back to typewriters and flip phones, they will be wielding AI tools in ways to foster human connection, and the kind of pro-human cultural that the Internet originally promised, but was never realized under capitalism.

I conveyed the conspiracy to my wife and her mother that Ellen Degeneres & Co. actually ate Stanely Kubrick after they realized what he was trying to push through the full uncut version of Eyes Wide Shut. I guess the Epstein files are bringing back longstanding rumors on satanic and ritualistic cannibalism. The most disgusting thing I read—which I did not share with them, for not wanting to evoke imagery of infant harm, and so STOP HERE if you're sensitive to that— was that Melania and Trump were on a yacht with Epstein, and they witnessed cannibals dismember babies, take out their intestines, and eat feces from it, which is absolutely inhuman and vile on so many levels, and I can barely understand why such a thing would even occur. Maybe there’s an elite postures where Epstein was boastful about his depravity: “look what I can orchestrate.” Or maybe (and most likely) the emails are intentionally fake to falsely incriminate others down the line? Either way, I find it very strange that such visceral images are entering public consciousness and large masses of people believe it.

Even if techno-feudalism is coming, we’re not trapped in a system of digital kings and serfs. I wonder, if we look back to the 10th-13th centuries, could we understand the different archetypes of autonomy to imagine how they might be reforged in the future?

• The hermits (the anchorites) fled society and were bound to no king. They lived in nature (or in a basement cell) but had control over their time / spiritual practice.
• The troubadours were the artists, and while commissioned by kings, they moved town to town and generally had no allegiances. (Traveling scholars and clerics, known as “goliards,” are similar—intellectuals with mobility.)
• The bandits operated in free zones between manors and would spread anti-feudal sentiment (think Robin Hood, or maybe also the “knight errant”).

To reinterpret these medieval roles for the 2030s, you could simplify to a triad of “ascetic, artist, outlaw.” You can (1) reject new technology and live an off-feed, off-grid, no-robot, analog life, (2) master tools and make things to gain independence in the emerging system, (3) revolt against the king(s).

I’m sure there are more options than this. Also pretty sure you can blend tendencies from each. I’m just trying to think through (and think against) the “bound to be a luxurious serf on UBI” mentality that comes up when talking about the future. Not sure about the economic realities of these modes (ie: the serf had stability, while the other 3 often had malnourished, brutal lives); but I wonder if/how technology evolves them.

I have gaps in medieval history and sociology, so please poke holes, ask questions, share sources, etc. I figured I’d share a fuzzy idea that bugs me to see if it gives me energy to turn it into something.