Trump’s ‘Space Force’ Could Fuel a New $1 Trillion Economy

Should President Donald Trump successfully organizes his “Space Force”, it could speed up investment in what Morgan Stanley sees as the next trillion-dollar economy, Yahoo Finance reported.

In a note to clients Friday, the bank doubled down on its intergalactic thesis from last October, saying the Space Force “could address critical vulnerabilities in national security, raising investor awareness in the formation of what we see as the next trillion-dollar economy.”

Morgan Stanley has already identified 20 stocks staking their place in the space race, and says it’s monitoring 100 other private companies across sectors including satellite internet, rockets, space tourism, and asteroid mining as the push to pioneer this new frontier heats up.

“Our conversations with various actors (current and retired) in the US government, military, and intelligence communities overwhelmingly indicate that space is an area where we will see significant development. This development could enhance US technological leadership and address vulnerabilities in surveillance, mission deployment, cyber, and AI,” a team of analysts led by Adam Jonas, the bank’s autos analyst, wrote in Friday’s note.

According to the bank, space is already a $350 billion economy, or roughly half a percent of the world’s GDP. As more investments pour into technologies like reusable rockets that make space exploration cheaper, that economy could grow to $1 trillion, especially as countries recognize the need for a space presence to maintain national security.

Still, though, it’s not clear how exactly the “Space Force” might come about, or even which branch of the current military it may fall under, but the bank says it could actually be a net positive for the Department of Defense.

“Based on conversations with some Washington insiders, establishing a Space Force as a standalone military branch, while potentially contentious, could be overall beneficial for the US Defense Department. That said, the President must now garner the support of Congress to move on the initiative, through both funding and authorization,” Morgan Stanley’s representatives pointed out.

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