Opinion – The Financial Flaws in Elon Musk’s Mars Colonization Plans


Elon Musk’s Space X needs to land humans on Mars by 2026. That issues as a result of Musk’s imaginative and prescient of people as a multi-planet species with a decreased danger of extinction from a disaster on Earth is wise. Spreading your dangers is rational if survival is your objective. Musk is a visionary, and he does know that colonizing the Crimson Planet will probably require a fleet of reusable spaceships, an enormous funding of capital which will by no means be recouped, courageous pioneers prepared to die within the journey, and finally a resident inhabitants that seems like Mars is house. Nevertheless, what Musk doesn’t know is how his settlers will earn a living on Mars that may be spent again on Earth.

Musk’s latest tweets present that he understands the daunting rooster and egg drawback of creating an extraterrestrial colony. Profitable colonization on Earth has at all times benefited from precursors in some kind. Earlier than the Fashionable Period, that means previous to 1500 AD, it at all times relied on the existence of life being already current. Because the Fashionable Period, it virtually at all times relied on the existence of pre-existing human habitation. The Polynesians who would turn into the Māori may colonize uninhabited New Zealand/Aotearoa as a result of plant and animal life had been already there in abundance and the British may colonize New Zealand/Aotearoa as a result of the Māori had been already there to commerce with. Neither the Māori nor the British needed to clear up the rooster and egg drawback. 

Settlers on Mars must convey every part however the minerals they mine with them. The entire labor, capital and know-how essential to determine an economic system to supply every part they may want – together with environment to breathe – must be hauled there 80 million miles from Earth. Adequate numbers of individuals and enormous quantities of fabric must arrive at roughly on the identical time. Musk has promised to spend both all of his wealth besides firm inventory or one-half of his cash to that finish. Whether or not that might be sufficient is unclear nevertheless it acknowledges that daunting drawback.

A minimally self-sustaining colony would possibly imply a breeding inhabitants of fifty individuals dwelling in a campus of underground tunnels, which sounds impressively claustrophobic on a number of ranges. Musk, nevertheless, has talked a couple of metropolis of 1 million dwelling on the floor below glass domes – a situation that has been dramatized within the e book and TV sequence The Expanse. That will surely be extra nice, however scaling up the inhabitants with housing much less more likely to induce affective issues nonetheless doesn’t clear up two associated issues of financial viability.

Financial alternate between colonists on Mars is straightforward to image, both as barter or mediated by scrip supplied by Musk’s firm retailer. Nevertheless, in the event that they use forex from Earth they’re more likely to uncover that there isn’t a correspondence between what it would purchase on Mars and again on Earth. That’s the shadow of the issue more likely to cripple commerce between the 2 worlds: they can’t share a forex.  That’s as a result of communication will probably be less expensive than transportation over interplanetary distances.  As soon as the primary direct digital manufacturing equipment is ready up, any commodity or capital good reducible to digital data, which is to say virtually every part within the many years to return, can be cheaper to transmit for manufacturing on arrival than to haul between planets. 

Cash performs many duties however an important is fixing the issue of figuring out the double coincidence of needs that causes friction in barter.  Cash solves that drawback on Earth however that might be not possible between worlds as a result of there may be nothing materials – no basket of bodily commodities – on which to find out its widespread worth. Not solely have people by no means confronted a whole rooster and egg drawback of colonization however they’ve by no means engaged in commerce completely on the premise of communicated data. Arbitrary forex values imposed by an organization retailer or colonial authorities on Mars may very well be solely short-term options as a result of efforts to flee their clutches would trigger the form of financial inefficiencies uncovered by casual markets. Nor would cryptocurrency repair the issue as a result of the costs for electrical energy to supply them can be unrelated on Mars and Earth.  Interplanetary commerce must be carried out by bartering data for data.

Contemplate how that might constrain the choice to to migrate to the Crimson Planet. Exploring and excessive sports activities would entice scientists and athletes, small numbers of whom turn into settlers. However why would the superrich in search of a bolt gap from future disaster selected Mars Metropolis or Muskopolis over someplace distant on Earth the place respiratory the environment is at the very least free? The tremendous wealthy will probably be discouraged from emigrating by the problem of shifting wealth forwards and backwards between worlds. The absence of a standard forex would desiccate their liquidity. They are typically extremely attuned to monetary exit choices to evade taxation. Mars would probably seem like a lure. The bold and artistic would acknowledge that emigrating would deprive them of each instantaneous and private contact with a lot bigger communities of the comparably gifted. Mars is not only 80 million miles away from Earth, it’s also three hours and 22 minutes away in radio sign delay time. Relative isolation would put them at a aggressive drawback in promoting their work and can be burdened by the transaction value of figuring out its worth within the absence of a standard forex. 

Now think about how all of that may make Mars an financial basket case.  Fashionable historical past exhibits that settler colonies had been profitable solely after they developed a worthwhile export commodity or proved helpful for provisioning army and business delivery: beaver pelts slightly than religiosity for Massachusetts and a location between Holland and the Dutch East Indies slightly than spectacular surroundings for Cape City. Mars will lack a bodily commodity price exporting. Mars would possibly export data merchandise however at at a profound drawback as a result of it could be buying and selling with a vastly bigger inhabitants of knowledge product producers again on Earth. Furthermore, Mars would haven’t any locational worth aside from as vacation spot as a result of there isn’t a motive for a spaceship to cease there on the way in which from Earth to wherever else.   

The scientific and engineering challenges of creating an extraterrestrial human settlement are daunting sufficient however fixing the attendant financial issues could also be much more troublesome. Because the historic experiences of Canada and Australia present, colonies on Earth typically struggled to draw and hold settlers and their descendants. Mars might want to provide greater than the promise of climbing Olympus Mons or the philosophical satisfaction of serving in a species extinction backup plan to make it economically viable. Elon Musk doesn’t know what it’s.

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