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Breakthrough space-tech is in no way is comparable to the broken window fallacy. In the latter, a window is replaced with a window, while in this case something

Breakthrough space-tech is in no way is comparable to the broken window fallacy. In the latter, a window is replaced with a window, while in this case something un-precedented has been created. Most of the wealth of developed nations comes from the belief that holding an asset will be worth more later - for example a house in your neighborhood will be increasingly valuable because people will continue to want buy it for the local schools, jobs, etc. How the rate at which assets are projected to increase in value is THE central lever on economic performance. What space tech does is says: the assets in this economy have the potential to increase in value at a greater rate. This makes everyone in the economy better off due to investment speculation "wealth from belief". However, I do think its valid to critique India if it were to over-invest in space-tech: they are not a modern economy with a large middle class yet, and thus could see more lucrative gains from New-Deal / GI-Bill -esque promotion of middle class. That being said, any (safe) investment portfolio should have a mix of all possible good policies, which includes tech programs along with social-welfare.

logicchains 12y ago
Wealth doesn't come from the belief that holding an asset will be worth more later; it comes from assets being invested in some way that makes them actually worth more later. E.g. I dig up some resource, and rather than consuming it I invest it in building some device that increases my ability to dig up resources in future. Wealth comes from productivity improvements. Developed countries are wealthier because it takes a tiny fraction of human effort to produce e.g. a car or a loaf of bread compared to in a developed country, because through investing in technology/capital we're much more productive at making cars and bread.

logicchains 12y ago

Wealth doesn't come from the belief that holding an asset will be worth more later; it comes from assets being invested in some way that makes them actually worth more later. E.g. I dig up some resource, and rather than consuming it I invest it in building some device that increases my ability to dig up resources in future. Wealth comes from productivity improvements. Developed countries are wealthier because it takes a tiny fraction of human effort to produce e.g. a car or a loaf of bread compared to in a developed country, because through investing in technology/capital we're much more productive at making cars and bread.