The Global Positioning System (GPS) is a free service that is owned and operated by the U.S. Government and is always available.

When we buy a GPS device, we don't pay a monthly fee or pay a tax for GPS support. We only pay the price of the device.

I don't understand how it's possible. How does the U.S. make money?

asked Dec 4, 2011 at 0:55

Arturo Herrero's user avatar

2

GPS was built with military uses in mind during the Cold War. In 1983, Korean Air flight 007 was shot down by Soviet interceptors over Kamchatka when it went off-course. All passengers and crew aboard the civilian flight, including a sitting US congressman, were killed. Amid the ensuing controversy, President Reagan announced that GPS would be made available for free for civilian use to avoid such preventable disasters in the future. So in essence, it took the political momentum from a national tragedy for it to become freely available.

See http://en.wikipedia.org/wiki/Korean_Air_Lines_Flight_007

answered Dec 4, 2011 at 16:30

dmahr's user avatar

1

GPS is a public service made free to access so that the country can collectively improve its knowledge of the technology. As in the case of the internet, this presents an opportunity for the more industrious among us to diversify its application at a faster rate. And when someone succeeds in finding a new and useful purpose for GPS, money is circulated. In the case of the GPS device, the U.S. receives money throughout the production chain: income tax from workers (if assembled in America), sales tax, taxes on transport/shipping operations, business licenses, and likely more.

http://www.america.gov/st/washfile-english/2006/February/20060203125928lcnirellep0.5061609.html

answered Dec 4, 2011 at 3:33

sin's user avatar

4

The Russians are also building and expanding on the GLONASS system, a competitor to the U.S. driven GPS systems. This has interesting sub-plots, such as if they decided to do anything maliscuous they could JAM U.S. GPS leaving thier own systems available for use.

answered Dec 12, 2011 at 23:34

D.E.Wright's user avatar

2

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