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Space Exploration and Development –
Using the Profit Motive to Do Good.


Background and Problem:

Historically, a small number of countries have explored space using public tax money to do so. At least to the extent that has been performed, it has resulted in not only many scientific discoveries – but numerous inventions and innovations that have had applicability to our daily lives.

Just some of such inventions and innovations are the microwave oven, super glue, Teflon non-stick surfaces, and great advances in computer science. It is undeniable that space exploration has not only added to man’s knowledge of the universe – but added to his standard of living.

Despite this backdrop, exploring space is an expensive and massive undertaking. And because of economic conditions and the demands of other government activities (example: the cost of the War on Terror), progress in space has been greatly slowed almost to the point of standing still. This should not be allowed to happen.


Analysis and Solutions:

One could either continue the current path of using tax dollars to near stand still in this endeavor, or perhaps even INCREASE taxes for a stepped up program. However: there is another way! One need only look to the past where other frontiers existed, to develop and explore, to find a solution that well-proven in its multiple of successes.

The solution is to commercialize the enterprise of exploration and development. It is little remembered, but should be well understood, that America was developed via a commercial contract! It was called the Massachusettes Bay Company of 1629. And its charter was granted by the King of England. Basically, in order to have Great Britain benefit from the resources gained and the ability to have large tracks of land claimed in the name of the King, the King entered into a contract with the Massachusettes Bay Company that granted this commercial enterprise rights to the land and the commercial development of such.

It was this business (not the government) that underwrote the band of Mayflower settlers that came to America and set up the settlement of Jamestown, Massachusetts. It was not the government. This commercial enterprise, of course, ultimately proved successful – or we would not now be in the country we are in.

A second, very successful use of the profit motive and commercialization was during the 1800’s when the Federal government enacted The Homestead Act of 1862. This Act essentially encouraged the country’s citizens to take the financial and physical risks to settle the newly formed territories of the West. In exchange for private citizens taking on the risks of development, the government granted each such citizen the right to a parcel of land totaling 160 acres. As long as they farmed the land for five years – the land became theirs. This Act allowed the quick and successful development of a new territory – all without massive government programs, subsidies, or tax monies.

Like our prior heritage, space – the final frontier -- can be efficiently and effectively explored and developed if government, again, use the profit motive to good and efficient ends. The development of space should be considered a WORLD endeavor and not one of a single country. As such, a mechanism to include all of the world and its countries must conceptually be employed.


What Needs to be Done:

At the initiative of the United States, a multi-national corporation would be formed. It would be called the United Federation of Countries, Inc. (UFC) and it would be like any other corporation with shares of ownership, a marketing department, a Board of Directors, and the like.

Like any other new corporation, a determination of the foreseeable financial needs of the corporation would be made. The value and number of the shares to be issued would, consequently, be determined. Finally, such UFC corporate shares would be purchased by all countries of the world. [Certain allocations would initially be made based upon the ability to initially fund the enterprise with immediate cash. However: one-third of all shares would be guaranteed to be allocated to undeveloped countries of the world.]

Obviously, such purchases would not be able to be made by 100% of the purchase price being paid up front. This is especially true of undeveloped countries. Any country that does not immediately pay for all of their shares can simply have their designated number of shares held in trust with dividends paid to such shares used to repay the loan (with nominal interest) granted that country. It is likely, because of the magnitude of the total upfront share cost, that ALL countries will have such shares in trust initially. And as time goes by and dividends accumulate, the shares would be released.

These “shares held in trust arrangements” would continue for a period not to exceed seventy-five (75) years. At the end of that period, several clauses become effective:

1) The countries still having a portion of their shares still held in trust must either pay in full OR put such remaining shares up for auction. Such shares would go to the highest bidder at that time.
2) The shares put up for auction can not only be purchased by any other shareholder/country – but for the first time any individual. Essentially, any individual can purchase an interest in the development of space at that time if they pay the market rate.
3) Going along with point #2 above, shares at that 75th year anniversary that are directly owned by the respective countries can also be sold to private individuals on the New York Stock Exchange (Ticker UFC) by the counties who own such shares.


Advantages:

At the above 75th anniversary, the United Federation of Countries, Inc. completely becomes a corporation just like any other. The UFC would be freely traded, entrepreneurial in nature, and efficiently developing the potentials of space. This would include the commercial licensing of any technology and inventions developed, the mining and refining of any minerals, and even the development of settlements for human habitation on other planets explored.

ALL of the above would be obtainable without massive government bureaucracies, ultimately using no taxpayer money (the original investments would be repaid via UFC’s continuing stream of dividend payments), and due to the profit motive – would be done in the most efficient and effective way possible.

This concept is a WORLD INITIATIVE. It is designed not to leave out anyone on earth. Even undeveloped countries would have a meaningful interest in this enterprise – a joint a peaceful pursuit that can’t help but develop the “ties that bind” all countries to a common, peaceful, and mutual destiny.

With the great success which surely must come from such commercial enterprise, someday the UFC will have successfully established human colonies on other planets. Humans will permanently live and work on other worlds. At that point, the Board of Directors of the United Federation of Countries, Inc. can put before all shareholders of the corporation a change in the corporation’s name. It could, henceforth, then be
called . . .


The United Federation of Planets

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