How Will the Money be Spent?

NASA’s 2012 $17.8 billion budget leaves no room for excess. It is $924 million less than Obama asked for, and $648 million less than the funding of the previous year. So where does all that money go? NASA is focusing the bulk of its funding on 3 major areas: $3.8 billion for Space Exploration, $4.2 billion for Space Operations, and $5.1 billion for Science Programs. A major project that will be getting financed out of the Science Programs is the James Webb Space Telescope (JWST). This telescope is the successor to the Hubble Space Telescope, and once made will focus on studying the birth and evolution of galaxies, and the formation of stars and planets. Unfortunately due to delays other programs will have to be cut in order to finance the JWST. This could result in job losses and less cash flow to other parts of the economy. NASA has a tough challenge to face: accomplishing its ever growing goals with considerably less money.

Picture: http://topnews.net.nz/content/23975-national-research-council-report-basic-research-nasa-decline

Link: http://www.jwst.nasa.gov/

Source: Teitel, Amy Shira. "A Mixed Bag for NASA's 2012 Budget : Discovery News." Discovery News. Discovery, 02 Dec. 2011. Web. 11 Dec. 2011. <http://news.discovery.com/space/nasa-2012-budget-ups-downs-111202.html>.

A New Space Race

Even though the words “budget cuts” carry a negative connotation, NASA’s 2011-2012 budget cuts may actually have a positive effect on the economy. With the end of the Constellation and Space Shuttle projects, NASA is in need of a low-cost alternative to buying seats on spacecrafts of other countries. The solution? Investing in the private sector. Companies such as Space-X, Boeing, and Lockheed Martin have proven to be successful in launching rockets into space. These private companies are pioneering a new way of doing business with NASA. They get seed money from NASA, and then compete for contracts to build their prototypes. Potentially thousands of new jobs will be created following this model, with around 5,000 expected in the coming years. This will infuse the national and local economies with much needed cash flow. Jobs are expected to be created in Florida, California, Texas, and Colorado.

Picture: http://www.nss.org/tourism/

Link: http://www.xprize.org/

Source: "Budget Cuts End NASA’s Plan to Put Astronauts Back on Moon." Newjerseynewsroom. Newjerseynewsroom, 04 Feb. 2011. Web. 07 Dec. 2011. <http://www.newjerseynewsroom.com/science-updates/budget-cuts-end-nasas-plan-to-put-astronauts-back-on-moon>.

NASA and the Private Sector

With the end of the 30-year Space Shuttle program, there is a void in space travel. Since the federally-regulated program won’t have any shuttles to get its crew into space, it will have to rely on third-party candidates. Currently, US space crews have to catch a ride on space rockets from other countries, a costly and inefficient way of doing things. With the 2011 budget cuts, a focus on doing more with less is becoming clear. The US economy is in a recession, and NASA can’t afford to spend $50 million per passenger to use other countries’ rockets indefinitely. To work around this problem, NASA is investing money in the private sector. It is investing in several companies, with the intention that multiple companies will result in competition, leading to lower prices and more technological advances in the space travel field. NASA organizes competitions for best designed spacecrafts, and awards the best choice with a large sum of initial “seed” money. In 2010, Sierra Nevada Space Systems won the largest award yet: $20 million out of a total of $50 million. This influx of money into private industries is creating a new economy, one that will someday be responsible for commercial space travel.

Picture: http://en.wikipedia.org/wiki/File:SpaceX_Dragon.jpg

Link: http://www.spacex.com/

Source: Nusca, Andrew. "NASA Helps Private Companies Launch New Spacecraft | SmartPlanet." SmartPlanet. SmartPlanet, 02 Feb. 2011. Web. 01 Dec. 2011. <http://www.smartplanet.com/blog/smart-takes/nasa-helps-private-companies-launch-new-spacecraft/14080>.

Technological Advances

One exemplary benefit of NASA is its role in numerous technological advances. The areas in which NASA-developed technologies benefit society are: health and medicine, transportation, public safety, consumer goods, environmental and agricultural resources, computer technology and industrial productivity. Common household technologies, such as Teflon, were developed by NASA. GPS, now a staple of modern society, was produced by NASA scientists. A recent innovation in insulation is also credited to NASA scientists, Aerogel. Aerogel is a substance that can absorb extremely high temperatures without failure, a trait that is applicable to many sectors of commercialization. It will soon be used in everything from coats to houses, infusing millions of dollars into the economy. The 2011-2012 budget cuts do not harm NASA’s Research and Development, so continued benefits to the economy should be expected.

Picture: http://stardust.jpl.nasa.gov/tech/aerogel.html

Link: http://sbir.nasa.gov/SBIR/successes/ss/10-017text.html

Source: Wilson, J.r. "NASA - Space Program Benefits: NASA’s Positive Impact on Society." NASA - Home. NASA. Web. 06 Dec. 2011. <http://www.nasa.gov/50th/50th_magazine/benefits.html>.

No Moon Bases in the Near Future...Sadly

Budget cuts for NASA’s 2012 fiscal year include a proposal to end the Constellation project, signaling an end to prospects for future manned moon visits. President Obama has long voiced disappointment with the Constellation project, calling it “over budget, behind schedule, and lacking in innovation.” The end of this program is a severe blow to many people who envisioned colonies on the moon, not to mention at least landing another crew on the moon by 2020. With the loss of these moon prospects comes loss in the public’s interest. The success of the first moon landings was in part due to the public’s enrapture with the idea of setting foot on the moon and beating the Soviets there. This public involvement united the nation as a whole, and greatly boosted the economy. As the Constellation project nears its cancellation, so does the public’s interest in spaceflight. No longer will children be fascinated with the possibility of setting foot on the moon, because NASA has lost most of its inspiration. Instead of getting back to the moon and inspiring the public, NASA has chosen to pursue other areas of space travel that do not cause as much interest. This will slow down growth of the space sector, and consequentially slow down the national economy for space travel.

Picture: http://letsonfamily.com/misc.htm

Link: http://abclocal.go.com/ktrk/story?section=news/local&id=7242958

Source: Amos, Jonathan. "BBC News - Obama Cancels Moon Return Project." BBC News - Home. BBC, 01 Feb. 2010. Web. 02 Dec. 2011. <http://news.bbc.co.uk/2/hi/science/nature/8489097.stm>.

Bye Bye Shuttle



NASA’s budget cuts follow in the wake of the news that its Space Shuttle program is shutting down. Three space shuttles, Discovery, Endeavor, and Atlantis, have officially been decommissioned, effectively ending the 30-year Space Shuttle program. The end of this program brings about the lay-off of more than 8,000 engineers, technicians, and other employees who were employed by NASA to ensure the continual operation of the space shuttles. Most of those employed live in Florida due to the presence of the Kennedy Space Center, and as a result, these massive lay-offs will most likely have detrimental effects on Florida’s economy. However, a counter argument to this is that with the end of the Space Shuttle program, NASA will increase funding to the private sector for space travel, thus funding the creation of future jobs in the private sector.  

Picture: http://www.boeing.com/defense-space/space/hsfe_shuttle/index.html

Link: http://articles.orlandosentinel.com/2011-09-06/business/os-florida-super-committee-20110904_1_federal-budget-cuts-federal-funds-information-federal-deficit

Source: "Effects of NASA's Shuttle Program Ending | Marketplace from American Public Media." Marketplace from American Public Media. American Public Media, 02 Nov. 2010. Web. 11 Dec. 2011. <http://www.marketplace.org/topics/tech/effects-nasas-shuttle-program-ending>.

A Good Investment

A good investment is one that pays off well in the long run. NASA happens to be one investment the U.S. made that pays off rather nicely. For costing less than 1% of the Federal budget, NASA stimulates the economy and brings about technological progress. A Midwest Research Institute study found that for every dollar spent on research and development (R&D), around 7 dollars are returned over an 18 year period in Gross National Product (GNP). This means that the $25 billion NASA spent on R&D in 1958 returned over $181 billion in GNP by 1987. With the recent budget cuts, less money will be put into NASA, thus less return will occur over time. However, a balance will likely occur between the money saved by retiring the space shuttle and funding the private sector for commercial space travel.

Picture: http://elizardi.com/mia/?p=339

Link: http://en.wikipedia.org/wiki/Budget_of_NASA#Annual_budget.2C_1958-2011

Source: Schnee, Jerome. "ECONOMICS." ER : Home. NASA. Web. 08 Dec. 2011. <http://er.jsc.nasa.gov/seh/economics.html>.