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.
