Exploring the Unknown - NASA's History Office

Diff. From Baseline, Thousands
Figure 1. Establishment Employment NASA Simulation vs. Baseline
Diff. From Baseline, Billions $87
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EXPLORING THE UNKNOWN 453
1994 1995 1996 1997 1998 1999 2000
Figure 2. Real GDP: NASA Simulation I vs. Baseline
Note: Calendar Year Basis
1994 1995 1996 1997 1998 1999 2000
Note: Calendar Year Basis
• If the NASA budget were eliminated, there is a loss of economic output, lower employment,
and decreased corporate profits which reduce federal tax receipts. Payments
for unemployment insurance and other related transfer payments rise, increasing government
expenditures on these programs. The combination of lower tax receipts and
higher transfer payments offsets much of the impact of the elimination of the NASA
budget on the federal surplus. By 1997, the federal budget improves by only $1.60 billion
relative to what it would be if NASA spending of $16.14 billion were not cut.
Summary Figure 3 highlights the extent of the improvement in the federal budget if
the NASA budget were eliminated beginning in fiscal year 1995.