![]() The multi-thousand page report (don’t worry, you don’t need to read it all!) has detailed analyses for every U.S. The core takeaway here isn’t the size of the multiplier (in this report, nationally, estimated to be roughly a factor of three), but instead the number and locations of jobs supported by NASA that are spread across the United States and the fact that they pay above-average wages consistent with high-skilled STEM fields critical to the nation’s future. Some caution is warranted when looking at absolute dollar figures - the model is sensitive to how one classifies expenditures and to local effects of where the money is spent (e.g., more diverse local economies can supply more local services, so the multiplier is larger). The authors of the NASA economic impact report take a theoretical perspective of NASA not existing in the fiscal year studied. The firms which sell them coffee and groceries, and the local polity that collects property tax on their house, may use those revenues to hire more employees to better serve this and other NASA employees these employees themselves purchase items in their locality, driving more demand, which creates more demand for services, which need more labor, which….well, you get the picture. They will pay state and local taxes on that income and those expenditures. They buy coffee at a local café’ on the way to work, groceries on the way home, and perhaps a house for their family. treasury, spends their salary to live in Alabama. ![]() Through the model, this results in a version of the famous multiplier effect: external demand into local area’s economy increases the local economic activity greater than the direct demand itself.Ĭonsider a new NASA employee that moves to Alabama to work at Marshall Space Flight Center. When external-supplying firms increase their output, local-supplying firms end up increasing their output as well. Export base theory considers the economic activity within a certain geographical area and divides it into two groups: firms that provide goods and services to the local area, and firms that supply goods and services to locations outside that area. They used an established economic analysis technique called input-output modeling, which is an extension and elaboration of export base theory. To create this report, the authors applied a detailed economic model to analyze the impact of NASA’s expenditures. For every full-time employee working on Moon-to-Mars projects at a NASA center, 37 additional jobs are supported throughout the economy.Īccording to NASA’s Chief Economist, we can expect an updated report every two years.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |