Elon Musk announced recently that the cost of SpaceX's mars rocket will likely cost much less than he expected. Earlier reports led Musk to believe that one rocket would cost roughly 10 billion dollars to be sent to Mars, however he now believes this number is closer to 2 billion. Obviously, this could have monumental effects on the future of human civilization on earth, but I also believe this could have significant macroeconomic effects now. When there is a technological breakthrough people are more likely to invest their money, this would reduce savings and there would be a chain reaction on global interest rates.
Do you believe that this announcement could be meaningful enough that investment levels increase enough to have serious economic effects?
https://www.cnn.com/2019/09/29/business/elon-musk-spacex-mars-starship-cost/index.html
I would believe so that this announcement could help investment increase. A technological advancement like this is so much greater than many other advancements we've had because of technology in the past couple years. Being able to go to space for a cheaper amount would mean a lot of things. I think this could have a positive affect on the economy.
ReplyDeleteIf we can find ways to do space travel using cheap and effective methods then I think that would attract the eyes of many investors. If these private programs get enough attention I think that commercial space travel would have a large market.
ReplyDeleteWith interest rates at a low level, demand for investment is high and with a technological advance such as this, more people will invest which could potentially raise interest rates; however, since this is a niche market, I believe only those who are educated on the topic will be the only ones to invest, so it may not have a serious macro effect.
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