It's not an either/or situation, we'll have both competition *and* augmentation. Though it's nice that Musk doesn't want AI to compete with people, it's too late, we're already there, and AI is increasingly on the winning side -- falling costs, better performance, and none of the hassles associate with hiring meatbags. The only problem is economic: who's your customer when you've put everyone out of work?
If this goes on the govt. will have to fund college including a living stipend while people made redundant go back to college to learn skills for the new economy.
Nope. Government-funded college is socialism--the worst evil of all. More US citizens will simply have to cope with poverty, which, though undesirable, is at least ideologically pure. Maybe buy a lottery ticket and dream big!
It takes a lot of self-discipline and the right kind of role models to balance of open-mindedness and skepticism. It's expensive in terms of time and mental work. Because of this cost, it's too easy to be stuck wherever you are, left or right, and dismiss/distrust new input.
With nanotech and other technologies, it's likely that the human form will be extensively redesigned in coming decades, with all kinds of replacement forms possible. Why be stuck with flimsy, fragile biology? Some of the new designs might live in space and have no need for Earth. There may be a few human hold-outs around living on land set aside for them.