The Decentralist Papers · Paper XVIII of XX

The Robot Economy

You Own The Machines, You Keep The Earnings

Roy W. Gurner · December 31, 2025 · 2 min read

Automation is not coming; it is here. Self-driving vehicles, warehouse robots, humanoid robots in early production, and AI that does cognitive work. Every government on earth is behind on it.

The question is not whether machines replace jobs. They will, at scale. The question is: who owns the machines?

Current trajectory:

  • Corporations own the robots
  • Workers are displaced
  • A universal basic income becomes “necessary”
  • Citizens become dependents
  • Power concentrates further

Decentralist trajectory:

  • Citizens own the robots
  • Robots work for their owners
  • Owners keep the earnings
  • Everyone becomes a capital owner
  • Power distributes further

How it works today, at small scale:

You own a self-driving car. It does rideshare while you sleep. It earns money. Under Decentralist taxation you keep 90% of what it earns, because there is no income tax and no capital gains tax. After charging, insurance, and depreciation, a single vehicle nets its owner somewhere between $15,000 and $30,000 a year at current rates. That is one machine, first generation.

Why the number is not the point.

What a machine earns will be set by the market, and it will fall as machines get cheap and plentiful, the way the price of anything falls when supply rises. The mechanism is what matters:

  • Whatever the machines earn, the owner keeps it
  • If citizens own the machines, displacement becomes income
  • If five companies own them, displacement becomes a dole

A household with several machines earning market rates, plus its dividend shares, plus whatever human work it chooses to do, has a floor under it that no layoff can remove. That floor is the point.

The robot economy under Decentralism:

  • No income tax on what a machine earns (there is no income tax)
  • No capital gains tax on selling it (there is none)
  • Consumption tax when the owner buys things
  • Tariff if the machine is imported

Incentives:

  • Buy machines built in the Union: no tariff
  • Work in addition to owning machines: keep that too
  • Have children: more dividend shares, and more owners in the household

Why current governments cannot solve this:

They are built on taxing labor. When machines do the labor, their funding model collapses. Their only answer is to tax the machines, redistribute the proceeds, and make everyone a dependent of the state.

The Decentralist answer: let citizens own the machines. No redistribution is needed when the ownership is already distributed. Everyone is a capital owner. The gig economy becomes everyone’s economy.

This is what the Founders would have built if they had machines. Property-owning citizens. Independent. Free.

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