---
title: "Paper: Expanding Economic Activity to Space may Offer a Solution to Secular Stagnation (2023)"
id: 64835
type: "post"
slug: "paper-expanding-economic-activity-to-space-may-offer-a-solution-to-secular-stagnation-2023"
author: "NSE"
published: "2023-10-19T19:07:54+00:00"
modified: "2023-10-19T19:09:43+00:00"
canonical: "https://newspaceeconomy.ca/2023/10/19/paper-expanding-economic-activity-to-space-may-offer-a-solution-to-secular-stagnation-2023/"
markdown_url: "https://newspaceeconomy.ca/2023/10/19/paper-expanding-economic-activity-to-space-may-offer-a-solution-to-secular-stagnation-2023.md"
description: "This article summarizes the key points from the research paper."
language: "en-US"
category:
  - "Industry Reports, Papers And E-books"
  - "Market Data And Analysis"
  - "Socio-economic"
  - "Space Economy"
  - "Space Exploration"
post_tag:
  - "Commercial Market"
  - "Government"
  - "Research"
  - "Space Companies"
---

# Paper: Expanding Economic Activity to Space may Offer a Solution to Secular Stagnation (2023)

![](https://i0.wp.com/newspaceeconomy.ca/wp-content/uploads/2023/10/img_6381-2-1.jpg?resize=696%2C957&ssl=1)

[Download document](https://newspaceeconomy.ca/wp-content/uploads/2023/10/weinzierl-2023-expanding-economic-activity-in-space-may-offer-a-solution-to-secular-stagnation.pdf)

## Synopsis

Here is a summary of the key points from the research paper:

- The paper argues that expanding economic activity in space could help address the problem of “secular stagnation” – persistently low economic growth that threatens advanced economies.
- Secular stagnation may be caused by both weak demand (insufficient investment) and weak supply (slow productivity and population growth). Space could boost both.
- On the demand side, historically high levels of public investment in space (3-6% of federal spending in the 1960s) could add $1.5-3 trillion to aggregate demand over 20 years, stimulating private investment too.
- On the supply side, space represents a new “frontier” that could drive innovation and productivity growth, as frontiers have done throughout history.
- Space exploration tends to foster a culture of individualism and risk-taking, which research links to higher innovation and growth, especially in stagnant economies.
- Expanding into space is also humanity’s only long-term option for population growth.
- The rise of commercial space companies makes the sector more dynamic and market-driven, reinforcing these frontier effects.
- Public-private partnerships, with government funding research and private firms pursuing commercial goals, are key to maximizing these benefits.

In summary, the paper argues that a renewed focus on expanding space activities, led by a mix of public investment and private entrepreneurship, could provide a uniquely promising path for advanced economies to escape secular stagnation through both demand-side stimulus and supply-side innovation.