Microeconomics Asteroid Mining

The National Aeronautics and Space Administration (NASA) is perhaps the most well known space agency in the world. Since its formation in 19581, it has pioneered in space science, yet is also renowned for its large budget. NASA has the highest budget of any space agency, $18.6 billion2 in 2015, the equivalent of every American paying $54 towards the agency3, meaning 0.14% of total GDP is spent on NASA3 . This money is spent on the ISS, sending astronauts, probes and satellites into space, astrophysics and planetary science research, maintaining and developing NASA’s space telescopes (the Wide Field Infrared Survey telescope searching for dark energy and exoplanets, the James Webb Space Telescope and the Hubble Space Telescope) and developing spacecraft2. Space exploration is an incredibly expensive process with one shuttle launch costing $450 million4 however NASA’s colossal budget benefits the USA greatly; the agency employs 18,000 people5 as astronauts, engineers, scientists and teachers and G. Scott Hubbard, former director of the NASA Ames Research Center estimates that every dollar spent on NASA returns $8 to the economy6.While this figure is an estimate, it demonstrates NASA’s worth and capacity for money making. NASA works on pioneering research and as its patents and licenses return to the US treasury, it

For many years humans have been exploring space to discover the unknown and fuel their curious and adventurous nature, but the decision of whether space exploration is worth the cost is strongly debated. Due to various arguments and evidence space exploration is strongly supported is proven to be worth the cost. Some of these reasons include space exploration being able to expand our knowledge and it being able to generate wealth. With these reasons the argument of whether space exploration is worth the risk can be easily decided.

For the social science lens, we will be looking at the shift in the economics for space exploration in the recent years.

The space race was a competition between the United States and the Soviet Union that occurred during the Cold War. They competed for dominance in space technology and spaceflight, which spurred many significant inventions and events. Some of these inventions and events include the first-ever landing on the moon, the first artificial satellite to be launched into the Earth’s orbit, the establishment of NASA, the invention of the microprocessor computer, the invention of satellite communication technology, and other direct and indirect impacts. Each of the different events and inventions that spawned from the space race have had significant impacts on the United States economy.

While many people support funding NASA and agree with the organization’s goals, there a good number of people who do not. A common reason for this is that they believe that the space program should focus on discovering things that can benefit us immediately, not in the future. This is a valid argument because there

Neil Armstrong 's 1969 lunar landing was one of humanity 's greatest accomplishments. Since then, we have found that an infinite supply of knowledge and resources await us just outside our atmosphere. Today, however, critics are beginning to argue more and more that the cost of space exploration is too high, and therefore new technological developments should be left to the private sector. Whether funded privately or by the government, funding of space exploration is imperative because NASA is essentially the only agency with the technological capabilities to support aircraft manufacturing, air safety and air transportation. Space exploration has also resulted in remarkable innovations that has played a key role in aeronautics research, preventative medicine, and allows scientists to study asteroids, along with other space debris and their impacts on Earth.

To support the ideas space exploration brings, one must look at where the people’s taxes are going and if these ideas are worth the financial trust the citizens put into their government. Source A explains where the taxes from salaries

The concept of space exploration was first introduced to the American public in 1961 when President John F. Kennedy famously stood before congress and vowed that America would put a man on the moon “within the decade.” With hopes of defeating the Soviet Union in the “Space Race” and gaining a leg-up in the Cold War, NASA funding reached its all-time high in 1965-1966 when about four percent of the federal budget was devoted to exploring space. Since then however, funding dedicated to exploring space has nose-dived to about one-half of a percent of the federal budget (Tyson), with plans to cut that figure by an additional $260 million in 2017 (cite NASA funding cuts). Experts in the space-sciences field argue that increased funding in space exploration would re-ignite the American economy and return America to the scientific prominence it was once known for, while, on the other end of the spectrum, naysayers suggest that exploring space is an economic sink-hole that the United States can no longer afford to deposit to given its own earth-bound troubles.

Instead of moving forward with technology we are using technology that has been present but just redesigning and improving it. My intention here is that with private companies trying to find methods of making their own advance method of exploring space, it is evident that they plan to charge people to take them on these space travels. For example, Musk is making the airframe completely renovated with special welding, ‘stir welding,’ and Dragon, which are great ideas. With the progress of private companies, it is evident that we are getting closer to sending humans to space.

The argument that complete privatization leads to cost-effectiveness is fundamentally misguided. This ill-advised “complete privatization” argument is best disproven through examining supporters of its theory, then by looking at how and why those theories are not effective at optimizing space exploration in practice. Dr. Robert Garmong, a professor and doctor of philosophy at Texas State University, argues that the complete privatization of space exploration is the only way to reflect capitalism in interplanetary affairs, and that this privatization is required for success in the field (1). Supporters of this argument falsely believe that a free market will force competing businesses into a new space race, allowing only the most efficient and cost-effective companies to succeed. In agreement with Garmong, Keating argues that space entrepreneurs will take the risks involved with space exploration in order to create new profit: “Government needs to limit itself mainly to space-related national security matters and otherwise get out of the way, so space entrepreneurs can take risks, invest in new technologies, and make space profitable” (2).

The world today revolves around technology and is in an ever upward spiraling path of new advancements. This path is now at what some people call the “final frontier”, or the space age. The discoveries being made on this front are overwhelming in comparison to the technology that the world had only twenty years ago. Space exploration was once left up to the governments, as they battled to be the first country in space, but with national debts raising and the cuts made in response, space exploration is beginning to become new grounds for private business owners. Private companies are already beginning to send off rockets at a fraction of the cost that government does, but if more money was put into the government space program, then they

To better understand the asteroid mining industry, a brief understanding of how asteroids are composed and useful is essential. Asteroids are pieces of rock, mineral, and metal in a compact form. There are an indefinite amount of asteroids in our solar system today and about 9,000-10,000 known around Earth. The exploration of asteroids has found that they contain trillions of dollars worth of minerals and metals including gold, silver, platinum, iron, nickel, water, and hydrogen. These valuable metals, for example platinum, is available up to grades 100 ppm on asteroids, whereas the mines in South Africa contain 5 to 10ppm (Sonter.) Because of the amount of available resources and the quality at which the resources can be found are the obvious reasons why this industry may explode. Asteroid mining is the extraction of

Arguable the most important factor of creating a privatized space program, however, is simply the furthering of man’s knowledge of that marvelous frontier. With more opportunity to explore and research the many celestial bodies near and far from Earth, man can strive into a new era of technology and information. Countless stars within countless galaxies lie in wait as people seek to

The mysterious vastness beyond Earth has allured many scientists to explore and contribute much of their effort to the understanding of space. Although humans have been looking up at space for thousands of years, the physical exploration of this frontier has been only going on for the past few decades. Our current understanding of space is unparalleled to any time before in our history, but we still only know a small fraction of what there is to learn. Governments around the world spend about $40 billion dollars a year (Rockefeller, 2010) hoping to undertake tasks such as “human exploration of the solar system” to discovering the origins of life itself (Tatarewicz, 2009, p. 531). Recently, the private sector has also shown interest in space exploration in order to engage in profitable activities such as harnessing minerals from asteroids. Although it is easy to debate about the benefits and negatives of space exploration in its entirety, it is simpler focus on one aspect of it - the direct effect it has to those down on Earth. Rather than trying to decide whether or not going to other planets is worth it, this paper will argue about the value of the terrestrial benefits of space exploration. It is an important topic to think about as programs such as space exploration change lives and help acquire knowledge. Despite the large costs associated with space exploration, the multitude of discoveries in the past few decades has greatly improved daily life on Earth, the jobs the

This article is useful to my research because of the analysis of the relationship between each step in space exploration and the possible benefits in the science field. Although this article is shorter than most of other resources, it clearly explains the whole processes of space exploration as a benign cycle, space resources produce economy, economy provides technologies, technologies creates opportunities to future exploration, future exploration leads to more discoveries and resources, and then back to increase in economy. It is a unique perspective of explaining the reason why we need to explore outer space and mining resources, each step produces considerable benefits.