[Short-Selling Firm Muddy Waters Founder: AI May Trigger Massive Unemployment, Impact Stock Market, and Drive Universal Basic Income Policy] BlockBeats News, June 22 — Carson Block, founder of short-selling firm Muddy Waters Capital, warned that artificial intelligence could lead to massive job losses in knowledge-based sectors in the coming years, triggering a chain reaction that impacts the stock market and potentially drives the implementation of Universal Basic Income (UBI). In a podcast, Block stated that approximately 15% of knowledge-based jobs in the U.S. could be replaced by AI in the next few years, affecting fields such as technology, law, and finance, with an estimated scale of 15 million positions. He pointed out that AI is significantly reducing the demand for labor in traditional knowledge work, such as document processing and information organization in the legal industry. He further argued that, unlike the employment recovery following the 2008 financial crisis, the job displacement caused by AI may represent an irreversible structural change, leading to a "continuous reduction in jobs available for humans." Block also suggested that the wave of unemployment could prompt households to withdraw funds from retirement accounts and reduce ongoing investments, shifting the U.S. stock market's capital flow from net inflow to net outflow, thereby exacerbating downward pressure on the market. He noted that the rising proportion of passive investments could weaken the market's buffering capacity during downturns, increasing systemic risks. Nevertheless, Block believes that society as a whole could still benefit from the productivity gains brought by AI, with the middle class potentially transitioning to working two to three days a week, while some individuals may rely on basic income for their livelihood. He also remarked that AI is significantly enhancing the efficiency of knowledge work and has altered his previous assessment of AI's capabilities. However, he remains skeptical about cryptocurrencies, stating that in extreme scenarios, he would prefer physical assets over digital assets. [Original Link]