Welcome back to Blog 4 on Earth, Space, and Human Responsibility.

Today, I would like to begin a discussion on how recent world events have led to astronomical increases in the prices of premium space products and launches.

To begin, I want to start with how geopolitical conflicts like war lead to not only local but global inflation as well. Greg Ip of the Wall Street Journal cites three primary reasons for this (with these reasons being especially prominent in the Russia-Ukraine conflict). The economy of the parties involved in war are often ravaged by the combination of civilian and military needs. Destruction of infrastructure and resources leads to a lessened ability of a country’s economy to function as normal. Additionally, the supply chain may become completely upended and unreliable with the introduction of economic sanctions and blockages by external forces. Inflation is also used as a means to fund the extremely high costs of war (i.e. banks can print more money and interest rates are kept low). The recent worldwide condemnation by hundreds of the world’s leaders of Putin’s Ukrainian invasion has led to enormously disruptive sanctions on Russia’s own economy.  Experts argue that inflation in Russia is likely to hit between 20-25% as they pour funding into their military efforts.

So… how has this inflation translated to the private space sector?

SpaceEx has recently announced that launch costs for their Falcon 9 rocket and ticket prices for their Falcon Heavy launcher have risen by about 8%. It now costs $67 million to launch the Falcon 9 (up from $62 million) and $97 million (up from $90 million) to reserve a seat on a mission from the Falcon Heavy launcher.

Fig. 1. National Space Society. Falcon Heavy.

Not only are costs of SpaceEx’s rocket launches increasing, but their Starlink internet prices are as well. Starlink is a company owned by SpaceEx that delivers premium internet connection from private satellites. The company currently has over 2,000 of these satellites in orbit connecting people across the globe. With over 100,000 terminals shipped to customers across the world, the company was bound to experience challenges in making sure their customers get the products they pay for. Recent inflation has led to a $110 increase in upfront costs for this premium internet service since its first foray into the market in October 2020. The service now costs $710 and includes a kit with a WiFi router and terminal.

Fig. 2. Starlink. Order Starlink.

A point to make on the subject of Starlink is recognition of Elon Musk’s efforts at keeping Starlink accessible in Ukraine despite the Russian invasion. Having made his opinions on the war very clear, Musk stated in February that he was sending Starlink terminals to the Ukrainian people as a form of aid.

Fig. 3. Twitter. “Starlink service…”.

This general trend of inflation across the privatized space sector leads me to the following questions for your consideration: why are we considering the allocation of private funds to what some may consider a frivolous purpose in context of the current status of the world? Is it better to wait for a period in which the world is a much more stable place? How can we balance exploratory desires and scientific success with making sure that things earthside do not become too dangerous? Where do we draw the line at planetary responsibility?

See you next time!