• generated $17.8 billion in total industry sales • had a multiplier effect on the economy of 2.1 • created 209,000 private sector jobs • created $2.9 billion in total industry profits • generated $5.6 billion in Federal, state, and local government tax revenues The total sales generated within the industries most affected are shown in Table 1. As expected, the largest total impacts of NASA procurement are concentrated in Aircraft and Parts, Ordnance and Accessories, Radio, T.V., and Communications Equipment, and related industries. However, it is instructive to examine the individual multipliers for each industry - these are shown for selected industries in Table 2. The data in Table 2 show that, per dollar of direct procurement expenditure, NASA programs will have widely varying multipliers by industry. These range from highs of near six for Electronic Components, five for Electric Lighting and Wiring Equipment, and three for Chemical Products, to lows near two for Motor Vehicles and Equipment and near one for Engines and Turbines and Aircraft and Parts. In other words, the 1987 NASA procurement budget created, indirectly, nearly five dollars in sales in Electronic Components for every dollar directly spent in that industry, while it created, indirectly, only about 30 cents of sales in the Aircraft and Parts industry for every direct dollar of expenditure in that industry. This result is not surprising. Aircraft and motor vehicles are final products whose components do not enter into the production of other commodities, whereas electrical and electronic equipment and chemicals are products required in the production of most other goods. Illis illustrates why it is important, in assessing the impact of the U.S. Space program, to examine the total impact on the economy, not just the direct procurement expenditures. As discussed below, similar relationships exist between direct and indirect effects, and the consequent multipliers, at the state level. Table 1 also shows the total employment created in each industry. The data here illustrate that the distribution of jobs created by industry differs in important respects from the distribution of sales shown. Thus, while large numbers of jobs are created in industries such as Aircraft, Ordnance, Business Services, and Communications Equipment where the generated output requirements are large, employment of equal magnitude is also created in service industries such as Wholesale and Retail Trade, Transportation, Warehousing, Restaurants, and Hotels. Employment created in these latter industries is large because they are very labor intensive and have low capital-labor ratios and low productivity. Because of these
RkJQdWJsaXNoZXIy MTU5NjU0Mg==