Space-Squatters Will Open The Final Frontier

Authored by Rainer Zitelmann via American Greatness,

When we talk about the future of mankind in space, we should learn from history.

Squatters played a crucial role in the settlement and economic development of the American West. Long before government institutions were firmly established, settlers moved onto unclaimed land, built homes, cultivated farms, and created entire communities without initially possessing formal legal title to the land they occupied.

In many cases, these settlers were the true pioneers of westward expansion. They established the foundations of economic life—farms, towns, trade networks, and local infrastructure—while the state often arrived only later. The expansion of the American frontier was driven less by central planning in Washington than by millions of individuals acting on their own initiative.

What made the squatters especially important was that they created facts before the law recognized them. They settled the land first and expected legalization afterward. Over time, American lawmakers accepted this reality and introduced legislation allowing settlers to obtain formal ownership of the land they had improved and cultivated.

The squatters embodied a distinctly American idea: that those who productively use land should have the right to own it. This belief stood in sharp contrast to the European tradition of aristocratic landownership and became deeply connected to the American ideal of the independent entrepreneur and pioneer.

Their activities transformed vast territories into economically productive regions. By cultivating land, building businesses, and creating communities, squatters helped turn the frontier into one of the most dynamic areas of economic growth in the nineteenth century.

Some economic historians view the squatters as an early example of how property rights emerge from below—through use, investment, and social recognition—before they are formally recognized by the state.

What we need in the future are space squatters. The crucial difference from the historical squatters of the American West is this: on other celestial bodies, there is currently no ownership at all. The land belongs to nobody. And unlike in the settlement of the American frontier, there is no indigenous population whose rights could be violated.

According to Article II of the 1967 Outer Space Treaty, states are prohibited from appropriating celestial bodies or territory in outer space. Whether this prohibition also applies to private individuals and private companies remains controversial among space lawyers.

The treaty says nothing explicitly about whether private individuals are permitted or prohibited from owning celestial bodies or land on celestial bodies. At the time, nobody imagined that entrepreneurs such as Elon Musk or Jeff Bezos might one day finance private space exploration with their own fortunes.

Some legal scholars, therefore, argue that national sovereignty ends where outer space begins. In their view, the treaty prohibits national appropriation of the Moon, Mars, or asteroids—but not private ownership. Their interpretation relies on a classic legal principle: expressio unius est exclusio alterius. If a treaty explicitly prohibits one category of actors—namely, states—then other actors not mentioned may remain unrestricted.

So who should have the right to acquire property in space? My answer in my book New Space Capitalism is straightforward: Those who have the financial means to get there, develop, and use the land. For instance, if SpaceX succeeds in reaching Mars and starts to build permanent settlements on the Red Planet, then the ownership of land should go to SpaceX first. Not of the entire planet, of course, but of a practicable area, for example, the size of Singapore. The surface area of Mars is 200,000 times that of Singapore, so SpaceX would initially only own 0.0005 percent of Mars. That would be enough to develop multiple settlements, but not so many that others would no longer have a chance.

SpaceX could fund its flight and development costs by listing the land on Mars in a real estate investment trust (REIT). The price would then be determined by the market. Most people would buy shares not to live there themselves, but in the hope of value appreciation. Future colonists could also receive preferential access to shares or land rights as an incentive to settle and remain on Mars for several years. In this way, private ownership would become a mechanism for attracting pioneers willing to take extraordinary risks.

We need private property in space. Without it, the conquest, settlement, and economic development of the Moon, Mars, and asteroids will remain impossible. More than two thousand years ago, Aristotle observed, “Property that is common to the greatest number receives the least attention.” The history of the twentieth century confirmed his insight. Every socialist experiment that abolished private property ultimately failed. Why should a system that repeatedly failed on Earth suddenly succeed on Mars?

No—what humanity needs are pioneers of space, space squatters, just as America once needed squatters to settle the frontier. The difference is that this time, no one will be displaced, because the celestial bodies belong to no one at all.

Rainer Zitelmann is the author of the book New Space Capitalism, which will be published by Skyhorse in early June.