Exploring the Unknown - NASA's History Office

454
[3]
Diff. From Baseline, Billions $
12
10
8
6
4
2
0
1994
SPACE AS AN INVESTMENT IN ECONOMIC GROWTH
Figure 3: Federal Gov. Surplus: NASA Simulation I vs. Baseline
1995 1996 1997 1998 1999 2000
Note: Calendar Year Basis
• Additionally, potential technology spinoffs from NASA-derived research would be lost
if NASA programs were eliminated (such as artificial intelligence, advanced robotics,
optical communication, and advanced computers). Because of their cutting-edge
nature, NASA programs are highly conducive to promoting technology advancements.
This store of technology is an important national resource because it can be
adapted to develop new products and processes.
NASA’s human space flight program provides the following economic impacts:
• By 1997, an estimated 179,000 jobs in the U.S. economy are created by the human
space flight program. The composition of the job gains are similar to those of the total
NASA budget. Many industries identified as likely beneficiaries of the human space
flight program are those that have been determined as important to the country’s
achievement of critical technologies. Much of the research and development efforts
taking place at NASA’s human space flight program are devoted to high-technology
sectors and stimulate employment in these vital sectors of the economy.
• An estimated $8.37 billion of real GDP in the U.S. economy is tied to the human space
flight program by 1997. Between 1995 and 2000, the human space flight program will
contribute a cumulative addition of $44.4 billion to real GDP. This estimate does not
include the increase to GDP that might result from technological innovation. Though
the transmission mechanism of federal expenditures on the human space flight program
throughout the economy is similar to the first simulation, the impact is lower
due to the smaller expenditures. One of the most critical benefits for the U.S. economy
from NASA’s human space flight program is the stimulus it provides to capital
investment. We estimate that by 1997, capital investment is aided by $1.12 billion.
Investment in equipment benefits the most and tends to foster productivity growth.
[4] • If the human space flight program were eliminated, the federal deficit would not
improve as much as the expenditure cuts. The combination of lower tax receipts and
higher transfer payments offset much of the impact of the elimination of federal