Space Economy

Currently, major powers are racing to reach the Moon’s south pole and plant a flag there. The reason is that water there contains hydrogen and oxygen, which can be extracted and used for missions to more distant destinations, such as Mars and other asteroids.

In the case of the United States, since Apollo 17 (1972), it has been more interested in Mars than in the Moon. It has sent robots to Mars eight times and to Titan once. In contrast, the U.S. space shuttle fleet was phased out eight years ago due to aging, and the U.S. is now paying Russia 80 million to secure a seat on a flight to send an astronaut to the Moon.

However, under the current Trump administration, interest has shifted back to the Moon. One reason for this is China’s breakneck pace. With news that China has become the first country to reach the Moon's far side, the U.S. is even feeling a sense of crisis. Currently, India is also preparing for a mission to the Moon.

The U.S., Russia, China, and even India are interested in the Moon not simply for exploration or national pride, but because of the immense resources and economic benefits it offers.

The U.S. is enacting legislation to deregulate and recognize private companies’ ownership of resources extracted from the Moon. It also plans to use the Moon’s south pole as a “gas station” to access resources from other asteroids. The U.S. Secretary of Commerce has said that the space economy is projected to generate 1 trillion in economic benefits by 2040.

Furthermore, NASA is collaborating with private companies, including Boeing and Elon Musk’s SpaceX, to build spacecraft. Amazon’s Jeff Bezos is also participating in the space industry through a project called Blue Origin.

A mission to the Moon holds multiple significances. Someday, space shuttles will carry people to Mars, but the journey to Mars is no easy feat, and the Moon serves as the “gas station” providing the fuel needed for that journey. That is why the goal is to plant a flag on the Moon first. Furthermore, by allowing private companies to mine resources in this unclaimed territory, the aim is to achieve a breakthrough in global economic growth.

08/10/2019 by Dr. Lan Joo