Wealth Expansion in Space

Any resource that cannot be replaced as fast as it is consumed is considered to be “non-renewable”. By contrast, resources that can be replaced or seem to be available in unlimited supply are considered to be “renewable”. The definition of these two categories is fuzzy and can change over time. In most economic theories, renewable resources do not hinder economic growth, while non-renewable resources can place a choke point in the path of growth.

While some produced goods are consumed, other goods are used for more production, such as: tools, machines, buildings, and computers. These are considered to be “capital goods” because they are not typically consumed and are used to promote more economic production. Production can be either limited or promoted by the availability of land, labor, knowledge, financing, capital goods, raw materials and energy.

Land, raw materials, and energy in space are likely to become cheap. Labor will be provided by automation. Many forms of capital goods (tools, machines) will last longer and operate more efficiently in space. Distribution of knowledge becomes trivial in a computerized and networked economy, but knowledge management and specialized knowledge sets can become valuable.

With the reduction of many of the factors that limit the growth of conventional earth bound economies, space based economies will flourish. In particular, increases in the efficiency of tools and machines that are used in future production, will create a positive feedback loop that accelerates growth. These space based economies will produce higher standards of living and greater levels of wealth.

SEE ALSO:
An Economic Singularity
Things That Work Better in Space
Economics in Space
Asteroid Belt Economy
Fortunes in Space

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