A Model for Economic Freedom on Mars

The momentum of human spaceflight initiatives continues to build toward Mars, and technological advances may eventually enable the potential for permanent space settlement. Aspirations for sustaining human life in space must be predicated on human factors, rather than technological constraints alone, and advances in models of governance and ethics are necessary as human civilization becomes a spacefaring species. This paper presents an idealistic but feasible model for economic freedom on Mars, which is situated within a framework in which Mars has been designated as a sovereign juridical peer to Earth. Under such conditions, Mars could maintain monetary stability through full reserve banking and a restriction on exchange with any fractional reserve Earth currencies, with a volume of circulating currency that changes based on the total population within fixed capacity infrastructure. Mars could maintain long-term political stability by diffusing the ownership of capital on Mars, which would allow all citizens of Mars to draw sufficient wealth from a combination of capital ownership and labor to live a good life. This model could also support limited tourism on Mars, in which real goods are exchanged for services but currency transactions between planets are prohibited. This model demonstrates the potential for a viable and sustainable economy on Mars that could conceivably be implemented, including on a sovereign Mars but also in other scenarios of space settlement. More broadly, this model illustrates that ideas such as diffuse capital ownership and limited government can enable freedom in space, and numerous models beyond a centralized world space agency should be explored to ensure the optimal governance of the emerging space economy.
Comment: Accepted by Space Policy