Space can connect back to the economy in many ways. Space is a factor in the growth and development of modern economies (space economics). Over the past few decades, technology and policy development have led to an increase in commercial interest in space, with two high-income countries -United States and China- currently launching the most payloads to space.
Space technology requires a significant amount of capital investments because of their potential to combat secular stagnation; however, government policies are enacted to govern human activity in space and prevent privatizing resources. Secular stagnation refers to a state of suffering from low private demand, requiring very low interest rates to sustain demand and achieve potential output. Even so, modern theories suggests the need to highly increase both aggregate demand and aggregate supply through capital investment, growth in productivity, or growth in population. If it were to succeed, the demand in the US would have increased in around 15. to 3.0 trillion to demand over the next two decades.
The potential of space as a large-scale project to reinvigorate economic growth through the use of mineral resources and improve human well-being. The clean energy transition could lead to substantial increases in the demand for certain minerals. The trade-off being an increase to environmental degradation and the high cost of mining minerals in space compared to the low launch costs is something to think about.
Andrew, I have never thought of this in all honesty but it is so cool to think about! When I was little I wanted to be an astronaut but then I watched videos of people in the space station and decided tight spaces are not for me.
ReplyDeleteThe amount of capital and money needed to fund these explorations and space expansion is crazy. I wonder just due to all the things happening on Earth if that is whats stoping the government with some of this funding? I do like that we could mine in space and reduce environmental pollution on Earth. We only get one planet to live on and it could be beneficial to explore what resources are out in space and maybe even underwater that we can tap into to create a greener world.
As Ava alluded to, the amount for capital and funds is immense. I wonder if the way to go about it will be through the government or more so through venture capital. I think the government should not miss out on this opportunity, maybe spend more money on this sector within NASA compared to space exploration. I feel as more people would be interested in space if they were able to go and maybe there would be great learning opportunities if this is funded
ReplyDeleteWow this was very interesting to read! The amount of capital needed to explore space blows my mind, and is almost incomprehensible. I think these are great ideas, although I do think the environmental concerns need to be extensively researched. In my opinion the possible negative environmental effects outweigh the positive economic effects.
ReplyDelete