Thu. Feb 25th, 2021

NASA has released a report on its economic impact for the first time. Its main focus points were cash flow as well as jobs. Before it even released the report, it was no secret that NASA’s economic impact was tangible and significant. However, now the reports stop the imaginations by offering facts. For instance, during the Financial Year 2019, NASA created 312,000 jobs and injected $64 billion into the economy.

The report is covered in around 2670 pages. From the report, it is clear that NASA is not a liability as many people perceive it but rather an asset to the country. Jobwise, NASA has over 18,000 civil servants. On top of that, each of the employees working full-time also supports 17 more jobs. That’s how NASA concludes that they contribute up to 312,000 jobs.

The cash flow is almost $24 billion, about $64.3 billion and $6.9 billion for labor income, economic output, and additional tax revenues, respectively. The reports highlight the Moon to Mars program as one of its most significant contributors. After all, it contributes to 22% of the entire impact, 2.4% of the jobs. However, if you include jobs associated with procurement and contractors, the impact of M2M programs on jobs goes up 20%. The fact that NASA has a 10-year plan focusing on revisiting various locations is another significant contributor to the economic impact.

Through creating jobs and procuring various goods, the demand for general goods and services increases. Consumers, local governments, and companies also increase their spending. One of the outlined examples is when NASA hires a contractor to do composite work worth $5 million. Throughout the contract, the contractor needs everyday needs, such as food, business services, and logistics work, which means more money circulation.

NASA also discusses industries that the agency supports either directly or indirectly. Sheet metal manufacturers get up to 66 jobs, whereas fabricated metal structures and heavy gauge metal tank manufacturers get 91 jobs and 13 jobs, respectively. As far as the sheet metal manufacturing industry is concerned, labor is worth around $4 million, the value is almost $6 million, and the total economic impact is approximately $14 million. As a matter of fact, manufacturers of pans, pots, utensils, and cutlery also get seven jobs.

The industries that NASA impact indirectly includes the tortilla and small arms manufacturing impacting the economy with about $4 million each. So, before arguing how money invested in NASA could be used in other areas that people feel more important, the agent wants people to understand that it is not all about spending. 

By admin