If earthly problems are more of an issue, then we should be worrying about the $170billion spent on defense, not the %1 wanted for NASA. Besides, the money spent on NASA goes to new technology, which has benefits right here on earth.
As a matter of fact, that's just the Air Force. The military in general gets almost 700 billion.
Increasing NASA's budget to 1% will have no appreciable impact on how well we can respond to "Earthly problems". In addition, space exploration provides or is important to a solution—in some cases perhaps the only solution—to a number of those problems, including overpopulation, energy production, and waste disposal.
However, even without that, NASA should get more money. Because NASA is a symbol of science and technology. When NASA landed on the moon, who wasn't awed? And, to use a cliché, how many watching children decided they wanted to become scientists?