{"id":563258,"date":"2026-08-08T23:40:15","date_gmt":"2026-08-08T23:40:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/563258\/"},"modified":"2026-08-08T23:40:15","modified_gmt":"2026-08-08T23:40:15","slug":"nasas-whole-2026-budget-was-24-billion-dollars-a-new-poverty-economics-study-puts-the-real-price-of-ending-extreme-poverty-at-up-to-318-billion-dollars-a-year-and-the-math-behind-fund-poverty-inst","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/563258\/","title":{"rendered":"NASA&#8217;s whole 2026 budget was 24 billion dollars, a new poverty-economics study puts the real price of ending extreme poverty at up to 318 billion dollars a year, and the math behind &#8216;fund poverty instead of space&#8217; turns out to run the wrong direction"},"content":{"rendered":"<p>\u201cImagine what we could do for the poor if we just spent NASA\u2019s budget on them instead\u201d is one of the most reliable lines on the internet, trotted out every time a rocket launches or a budget bill passes. It sounds like arithmetic. It is not arithmetic. Run the actual numbers against a real poverty-economics study and the comparison collapses almost immediately, not because ending poverty is too expensive to take seriously, but because NASA\u2019s budget is nowhere near large enough to be the thing standing in the way of it.<\/p>\n<p>Congress <a href=\"https:\/\/www.space.com\/space-exploration\/in-rejection-of-trumps-deep-cuts-congress-passes-usd24-4-billion-budget-for-nasa\" target=\"_blank\" rel=\"noopener nofollow\">finalized NASA\u2019s fiscal year 2026 budget<\/a> at $24.4 billion in January 2026, rejecting a White House proposal that would have cut the agency closer to $18.8 billion. It\u2019s a real number, and a real fight over it played out in Washington. But set next to what a new working paper says it would actually cost to end extreme poverty worldwide, $24.4 billion isn\u2019t the number that settles the argument. It\u2019s the number that shows how far short the argument falls.<\/p>\n<p>What ending extreme poverty actually costs<\/p>\n<p>A December 2025 <a href=\"https:\/\/www.nber.org\/papers\/w34583\" target=\"_blank\" rel=\"noopener nofollow\">National Bureau of Economic Research working paper<\/a>, led by researchers at UC Berkeley, Stanford and UC San Diego, set out to answer the cost question with more precision than it usually gets. Using household survey data from 23 low-income countries and machine-learning methods to identify exactly who needs how much, the team calculated that lifting the extreme poor in those 23 countries to $2.15 a day, the benchmark used at the time of the study, would cost roughly $170 billion a year if the money were optimally targeted rather than spread evenly. (<a href=\"https:\/\/ourworldindata.org\/new-international-poverty-line-3-dollars-per-day\" target=\"_blank\" rel=\"noopener nofollow\">The World Bank has since raised<\/a> its official extreme-poverty line to $3 a day \u2014 a change the researchers note would push the true cost above $318 billion, not below it.)<\/p>\n<p>Extrapolated across the full 85 countries the researchers estimate account for the world\u2019s extreme poor, some 533 million people, that figure rises to $318 billion annually. That\u2019s the number worth sitting with: not $170 billion, which covers a partial slice of the problem, but $318 billion, which is what actually ending the thing looks like at global scale. As one of the study\u2019s authors, Joshua Blumenstock of UC Berkeley\u2019s School of Information, <a href=\"https:\/\/www.ischool.berkeley.edu\/news\/2026\/bold-calculation-what-would-it-cost-end-extreme-poverty-worldwide\" target=\"_blank\" rel=\"noopener nofollow\">put it<\/a>, the figure represents \u201c0.3% of global GDP,\u201d a share he compares directly to the roughly 2.2% of global GDP the world spends every year on alcohol.<\/p>\n<p>Where the popular version of the math breaks<\/p>\n<p>Line the two numbers up and the arithmetic behind \u201cfund poverty instead of space\u201d falls apart almost immediately. NASA\u2019s FY2026 appropriations bill \u2014 the funding Congress just fought over \u2014 covers less than 8% of what the researchers say is needed to end extreme poverty for a single year (NASA\u2019s total FY26 funding, once a separate $10 billion allocation from other legislation is included, comes to about $27.5 billion \u2014 still under 9% of the poverty figure.) Even if every dollar NASA spends were redirected tomorrow, with zero loss to overhead or delivery costs, the money would run out having addressed roughly one thirteenth of the problem it was supposedly going to solve.<\/p>\n<p>That\u2019s the part the internet version of this argument tends to skip. It isn\u2019t just that redirecting NASA\u2019s budget would be a political long shot. It\u2019s that the number being redirected was never close to sufficient in the first place. The comparison implicitly treats NASA\u2019s budget as though it\u2019s in the same weight class as global poverty spending, when it\u2019s closer to one-thirteenth the size. A single national space agency\u2019s science and exploration budget, compared against a genuinely global economic problem spanning 85 countries and more than half a billion people, was always going to look small by comparison. It just turns out to be smaller than most people assume when they reach for it as an example.<\/p>\n<p>The actual scale of the number, and why it\u2019s smaller than it sounds<\/p>\n<p>None of this means ending extreme poverty is out of reach, and that\u2019s the part of the study that tends to get lost once the NASA comparison enters the conversation. $318 billion sounds enormous stated on its own. Stated as a share of the global economy, 0.3%, it sits below what the world spends annually on cosmetics (0.6% of global GDP, by Blumenstock\u2019s own comparison) and far below global alcohol spending. Roshni Sahoo, the study\u2019s lead author and a Stanford doctoral researcher, built the underlying model as what she has described as a statistical targeting problem: identify precisely who is poorest, using real survey data across 23 countries, and allocate a fixed budget to close the gap as efficiently as possible rather than spreading it thin.<\/p>\n<p>That targeting detail matters, because the naive version of ending poverty, an equal transfer to every poor household regardless of how far below the line they sit, would cost dramatically more than either figure the researchers arrived at. The $170 billion and $318 billion numbers both assume the money goes to the right people in the right amounts, which is a genuinely hard logistical and political problem even once the dollar figure is settled. Money alone doesn\u2019t distribute itself.<\/p>\n<p>What the comparison is actually good for<\/p>\n<p>The honest version of this comparison isn\u2019t \u201ccancel the space program,\u201d and it isn\u2019t \u201cpoverty is unsolvable.\u201d It\u2019s that global problems and national agency budgets are different units of measurement, and collapsing them into the same sentence produces a satisfying line that doesn\u2019t survive contact with either number. NASA\u2019s $24.4 billion is a meaningful sum inside one country\u2019s federal budget. $318 billion is a meaningful sum inside the global economy, a genuinely small share of world output for a problem this size, but a share nearly thirteen times larger than what any single space agency has to give. The math behind ending extreme poverty turns out to be more encouraging than the popular framing suggests. It just isn\u2019t sitting inside NASA\u2019s checking account, and it never was.<\/p>\n<p class=\"article__editorial-note-kicker\">Standards<\/p>\n<p class=\"article__editorial-note-text\">\n\t\t\t\tSpace Daily articles are edited and fact-checked before publication. We use AI tools in the newsroom. See our <a href=\"https:\/\/spacedaily.com\/editorial-policy\/\" rel=\"nofollow noopener\" target=\"_blank\">editorial standards<\/a> and <a href=\"https:\/\/spacedaily.com\/masthead\/\" rel=\"nofollow noopener\" target=\"_blank\">masthead<\/a>.\n\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cImagine what we could do for the poor if we just spent NASA\u2019s budget on them instead\u201d is&hellip;\n","protected":false},"author":2,"featured_media":563259,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[111,139,69,147],"class_list":["post-563258","post","type-post","status-publish","format-standard","has-post-thumbnail","category-science","tag-new-zealand","tag-newzealand","tag-nz","tag-science"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/563258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=563258"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/563258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/563259"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=563258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=563258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=563258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}