Why NASA Hired a Chief Economist

NASA's first chief economist, Alex McDonald, explains the economic dimensions of space exploration on this Odd Lots episode. Drawing from his time advising NASA's administrator and his background in space economics, he outlines the agency's funding history, shift toward private partnerships, and assessments of emerging markets like microgravity manufacturing.

Chief Economist's Role at NASA

McDonald served as one of three independent technical advisors to NASA's administrator—alongside the chief scientist and technologist—focusing on economics for a $25 billion agency with 10 centers, international partners, and heavy private contracting. The role, created in the first Trump administration, provides analysis on markets, investment levels, company funding claims, and procurement risks. It emerged as private sector involvement grew, starting around 2008 with early SpaceX contracts during the shuttle era. Responsibilities include biennial economic impact reports detailing spending across all 50 states, emphasizing NASA's role as a public expenditure rather than a direct investment with calculable ROI.