“The pinnacle of capitalism is still flawed. Any idea that it’s perfect — this idea of the perfect union — is deeply flawed as a concept and always has been.” — Keith Teare

With July 4 finally done, we can look forward to the next American revolution. Just as AI is revolutionizing the economy, so too are radical ideas about harnessing this disruption for the benefit of all Americans. One idea that is acquiring more and more currency in and out of Silicon Valley is what we might call universal basic capitalism.

Six months ago, nobody knew what “universal basic capital” even meant. Now everyone is talking about it. What if the answer to inequality, AI disruption, and the slow hollowing out of the American economy isn’t a return to socialism — but a new, more distributive kind of capitalism? As That Was The Week’s Keith Teare argues in our weekly tech roundup, universal basic capitalism offers the best way to simultaneously empower all Americans without turning them into the welfare “queens” so disparaged by neo-liberals.

Economists agree that AI is going to eliminate vast numbers of jobs, probably within the decade, certainly in time for America’s 300th anniversary. One fix is the democratic socialist strategy of tax and spend through the state. Universal basic capitalism, in contrast, takes the wealth generated by AI companies, puts it into a sovereign wealth fund, and distributes the dividends directly to citizens. Rather than an ever-more-bloated bureaucracy redistributing wealth, the state miraculously shrinks.

It’s a neat idea. Instead of welfare queens, we get shareholding kings. But is this really the next American revolution? Or just the trickle-down economics of the DOGE crowd for an AI age of mass unemployment?

Five Takeaways

• America the Beautiful — and Its Profound Flaws: Keith’s 250th editorial acknowledges America’s extraordinary achievements: the growth in wealth, living standards, and democratic governance over two and a half centuries. The fact that Donald Trump won the presidency, Keith notes, is itself evidence that the people still rule — most intellectuals didn’t want him, but the people voted for him. At the same time: capitalism at its best still has huge swathes of poor people who can barely eat. The perfect union is deeply flawed as a concept and always has been. America has probably peaked in world terms. The next 250 years are not a foregone conclusion.

• 1,200 New Millionaires a Day: The American Prosperity Machine: The stat of the week: the United States added 1,200 new millionaires a day last year, bringing its total to nearly 24 million. China has just over 5 million; Italy, the Netherlands, South Korea, Australia, France, and the UK are all under 3 million. The math: US GDP per capita is around $85,000 a year; China’s is around $20,000-something. In California in particular, where house prices routinely exceed $1 million and there are 50–60 million residents, the numbers are doing a lot of work disguising a highly skewed distribution concentrated in coastal cities.

• Universal Basic Capital vs Democratic Socialism: The State Shrinks: Keith draws a sharp distinction between UBC — the sovereign wealth fund model — and democratic socialism as practised by Mamdani, Sanders, and AOC. In the socialist tradition, you seize the state through elections and use taxes and spending for good ends. Under UBC, the sovereign wealth fund becomes the distribution mechanism and the state shrinks to an administrative function: roads, health, education, defence. The actual AI companies don’t become the state. The state becomes a shareholder in the fund. Money flows to citizens; the state shrinks. It’s an interesting inversion.

• The AI Jobs Debate: Short-Term Boom, Long-Term Automation: Erik Brynjolfsson of Stanford is at the centre of a debate this week. One body of evidence says companies using AI are hiring faster than companies that don’t — Amazon and Microsoft both announced plans to put thousands of engineers on the front line helping customers implement AI. But Brynjolfsson’s longer view says automation will accelerate: the things you need a front-end engineer for today will be done by agents tomorrow. Keith agrees with the long view: declining employment over five to fifteen years, which doesn’t have to be a bad thing if universal basic capital is in place. Look at Musk’s robot plans. It is definitely declining employment.

• Om Malik: The Liberal Humanist Who Prefigured Substack: Om Malik died this week at 59 — the tech journalist and venture capitalist who founded GigaOm and co-hosted the Crunchies with Mike Arrington. Keith knew him from Iceland, from photography, from the whole era of early tech blogging. His assessment: Om was a liberal with a capital L and a humanist, often writing critically about the extremes of capitalism and favourably about remedies. He became a capitalist to be independent, and that independence gave him freedom. Without GigaOm and TechCrunch, there would be no Substack. The line runs from the New York Times to GigaOm to TechCrunch to Substack to That Was The Week. Thank you, Om.

About the Guest

Keith Teare is a British-American entrepreneur, investor, and publisher of the That Was The Week newsletter. He is a co-founder of TechCrunch and Andrew’s regular TWTW co-host.

References:

• That Was The Week by Keith Teare — the newsletter on which this episode is based.

• Erik Brynjolfsson (Stanford) — referenced for his argument that AI will accelerate long-term job automation, despite short-term hiring booms.

• Jennifer Harris, “The Generational Force Hollowing Out the Economy,” The New York Times — referenced in the closing discussion.

• Om Malik — founder of GigaOm; venture capitalist at True Ventures; died July 4, 2026, aged 59.

• MG Siegler — referenced for his obituary of Om Malik.

About Keen On America

Nobody asks more awkward questions than the Anglo-American writer and filmmaker Andrew Keen. In Keen On America, Andrew brings his pointed Transatlantic wit to making sense of the United States — hosting daily interviews about the history and future of this now venerable Republic. With nearly 3,000 episodes since the show launched on TechCrunch in 2010, Keen On America is the most prolific intellectual interview show in the history of podcasting.

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