What 18th century textile manufacturing can tell us about asteroid mining.

This article is a response to "A Billion Tons of Nickel" by Chad Orzel http://scienceblogs.com/principles/2007/05/a_billion_tons_of_nickel.php

The spinning jenny was invented in 1764 by James Hargrieves. This device allowed a person to produce 9 times as much yarn as was previously possible with a spinning wheel. This, as you might expect, led to a significant decrease in the price of cotton yarn, with disastrous consequences for those employed as spinners. However, in the face of low price, people were able to afford such luxuries as a change of underpants or a second blanket for cold winter nights and demand for yarn increased, which in turn led to an increase in employment and a better standard of living for all. A lesson we can take from this is that in a market economy supply, demand and price are linked, and that a low cost increases demand. A person living in a Tokyo apartment might be satisfied with 300 sq. ft, but if an abundance in construction material made a larger dwelling affordable, they would purchase more space.

In addition, space bound infrastructure enjoys some unique advantages. For example, light is blocked by the atmosphere which greatly reduces the efficiency of solar panels. By placing solar panels in space and having the collected energy beamed to earthbound receivers in the form of microwaves (which are not significantly affected by the atmosphere), we could greatly increase the amount of clean energy available. Building structures in space will be far cheaper if materials do not have to be transported from Earth.

In order for the whole world to enjoy a first world standard of living, we need to greatly reduce the cost of resources and energy. Some of this will be accomplished through recycling programs and the curtailing of some of the more excessive forms of consumption, but it will not be enough. In order for humanity to reach the next level, space exploration must take place.