Can Manned Spaceflight Save the Economy?

Barry asks: "Driving home last night I was listening to a particularly goofy AM talk station. Just before the syndicated UFO talk show 'Strange Days... Indeed' came on, the discussion turned to the Mars Rovers and George Bush's newfound love of space exploration. The interesting thought was that a large number of American political leaders were about to join Bush in endorsing a new manned space program because it would generate 'millions of jobs'. Given that manufacturing jobs are being shipped offshore, and high tech jobs are following, this almost made sense. A primarily unemployed population could mean big trouble. So I am wondering how many people were employed during the height of NASA's glory days, and what kind of economic impact would we expect if a similar program - a Mars mission for example - were launched today?"

Comments

Yes, it's the broken window falacy.

[GlenRaphael]

Or as Dave Barry puts it:

"See, when the government spends money, it creates jobs; whereas when the money is left in the hands of taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs."

It's nuts to assume that throwing money at some new boondoggle will help the economy. Yeah, throwing money into space might employ people. Or alternately, you could employ a lot of people in the hole-digging industry if the government simply funded a giant industry to dig holes and fill them up again. Why not do that? See the parent poster's link.

There are jobs, and there are jobs...

[gregwbrooks]

The question isn't whether another Apollo Project-esque endeavor will create jobs -- of course it will.

The question is: Are those the jobs the best way to go about goosing the economy, and is this the way we want to develop them?

Unless President Bush plans to privatize the whole effort, we're talking about jobs paid for with federal contracting funds, and those are some of the most inefficient jobs you can release into the economy.

There's nothing inherently wrong with jobs generated by federal spending -- after all, the government needs to buy stuff just like any company. However (and this is the important part) jobs that grow out of federal spending programs aren't the most efficient way to translate capital into work.. First, the money has to come from somewhere (i.e., taxes). Then, it goes through an inefficient bureaucracy that needs some off the top to perpetuate and grow itself. Then, it goes back into the economy in the form of federal spending, but the spending is often uncompetitive because of pork set-asides or

Bottom line: If you put a few billion dollars into federal spending in the private sector and compared the economic impact with simply leaving the capital in individual and business hands to figure out what their highest and best uses were, you'd see more efficient use of the capital (read: more net benefit) from the latter.

Oh, and although everyone likes the high-tech aspects of the space program, the fact is that there would be many, many old-economy manufacturing jobs created or sustained for every engineer or scientist.