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I'm glad you're moving away from blunt accusations, but let's look into details deeper. > there would be no SpaceX without govt funding Strictly speaking, his
by avmich 4y ago
I'm glad you're moving away from blunt accusations, but let's look into details deeper.
> there would be no SpaceX without govt funding
Strictly speaking, historically things evolved one particular way, and we don't know exactly what would happen if something have changed in the past. Here you state your opinion, and I'd say yes, SpaceX used US govt money, but that doesn't mean they couldn't grow without them. They already had an orbital launch on private money - a significant achievement by itself - and there were plans to grow without NASA, which - in my opinion - were reasonable. So I'm skeptical about their guaranteed death without support from US govt money.
> But it does make their model divorced from a purely capitalistic endeavor.
Maybe you mean some rather theoretical, simple pure market model. In reality US govt supports growing industries - Internet is an example - so this is at least rather traditional.
> I am saying he had almost nil chance of winning that game without taxpayer support
This is an opinion. Here is what I know: there is a community, called alt-space (from a Usenet section), or New Space, which basically talked about what SpaceX was doing about a decade before SpaceX. It was a matter of time who'd get this done successfully first. An example of this New Space approach would be Northrop Grumman Lunal Lander Challenge, where John Carmack's Armadillo Aerospace showed a lot of impressive technology, and which was eventually won by Masten Space - all of that with reusable rocket technology, landing under power, years before SpaceX made first stages of Falcon-9 reusable. Because of this I think that Elon's stated approach of developing more modest, but cheaper rockets - like Falcon-5 (while continuing flying Falcon-1) - or partnering with Virgin Galactic on droppable launcher - relying only on private market could actually work.
> but I am saying he had almost nil chance of winning that game without taxpayer support.
Beal Aerospace "folded" a few years before SpaceX; now people have doubt if he did the right thing, given that his technology was perhaps even cheaper than SpaceX. NASA also learned a lesson from Beal closing the doors, and was more careful to the next entrant. The final result, by today, is rather good, by popular opinion, I would say - NASA got a good launch supplier, SpaceX got a good anchor customer, so US govt would likely lose if it didn't support SpaceX, and relying on that support was a good approach. Yet even without that support there is no guarantee SpaceX wouldn't succeed; there are some arguments for that.
> if the business model is only viable with government contracts and is particularly viable because it forces taxpayers to shoulder the early risk, yes.
SpaceX brought significant savings to US govt, so that risk - from US point of view - was rather justified. Remember, US govt can't work with only zero-risk schemes, and in such a complex area as space access it has to tolerate some risk, even with existing providers.
> If your business only works by being propped up by the govt
There is no proof that SpaceX couldn't work without govt help. Also govt help brought taxpayers savings - in exchange for some risk, which is not obviously comparable to existing non-zero risk elsewhere.
> it's a bastardized form of socialism.
I doubt many on HN will agree with you.
> but let's not revise history to ignore those early facts
I want to emphasize - if the history would repeat, those choices made would better be repeated. Even if SpaceX lost, US govt would be better keeping betting on new companies for the launch services, because alternatives are likely worse. In this sense SpaceX is a lucky opportunity for US.
> because they don't fit our preferred narrative of Musk being a clever paragon of capitalism.
For long time rocket startups assumed one of their customers - perhaps biggest, or the only one - would be US govt, because the US govt doesn't historically have that much of a choice. If we'd have many SpaceX-es, then, yes, a new company could worry that they could not be chosen by US govt for contracts, because their competitors are that much better - but even now it's not the case. In this sense, because Musk knew all too well US govt will need his resources he doesn't stop being "a clever paragon of capitalism".
> The simplest way of framing it is saying, "If they required taxpayer money in order to become/remain viable, it's a form of socialist intervention." I would put a lot of other companies in that list, from automotive to finance, so I'm not just picking on SpaceX.
Since this is how things work, I wouldn't even argue. I'd just say that's how things work. If you wish they'd better work differently, you'll have to provide arguments why that different way will actually be better.
- bumby 4y ago>we don't know exactly what would happen if something have changed >This is an opinion. >There is no proof that SpaceX couldn't work without govt help. These are all refuted by Musk's own words. He literally said NASA bailed him out when they were so close to failure he thought he might have a mental breakdown. The irony is that your push against that seems to be your own opinion, that goes against his. I am also aware of the previous work with similar ideas, including others that you didn't mention. Yes, the ideas existed. However, there wasn't the right climate or the right timing to execute it. Hell, govt essentially subsidizing flight goes back to the Wright brothers competing for military contracts. In a sense, that's what changed the pursuit from hobbyists to professionals. I give all the credit to Musk for capitalizing on that when the timing was right. But that is conflating good business timing that secures govt support with being a good capitalist businessman, irrespective of govt support. As to whether the govt is better off, I agree. I've already said that much in this discussion and elsewhere on the thread. But the same applies to when the govt bailed out GM to save a major manufacturing supply chain, or bailing out the financial sector during the housing crises. This feels very much like a strawman. I'm simply pointing out they benefit from a form of socialized risk; I'm not saying the effects of socialist policies are inherently bad. So, to your statement about this is just how things work, I generally agree there as well. What I disagree on is when people pretend it's not so in order to justify a fairy tale of capitalistic virtue. I don't think it's wrong for the govt to support businesses like this; if you recall, my original post was simply refuting the framing of the problem as a false dichotomy between NASA and SpaceX while failing to recognize that the differences are actually part of the intent, not the result of some boondoggle. I do think you may have had a knee-jerk reaction to my initial comment, which is understandable given the amount of Elon hate. Maybe if you re-read it with a critical eye and some emotional distance, you'll interpret it differently. It seems like the only part we really disagree on is the viability of SpaceX without govt support early. Sure, maybe there's a chance they would have still succeeded, but given Musk's own words on the matter, I highly doubt it. And I'm pretty happy they've done well.
- avmich 4y ago>>we don't know exactly what would happen if something have changed >>This is an opinion. >>There is no proof that SpaceX couldn't work without govt help. >These are all refuted by Musk's own words. He literally said NASA bailed him out when they were so close to failure he thought he might have a mental breakdown. We disagree in interpretation of Musk's words - indeed, I never heard him saying that he would certainly close SpaceX if NASA funding wouldn't materialize.