The goal of a private space system is to have more money at the end of the process than you started out with, no matter who the customer is.

A public project is primarily concerned with filling the rice bowls of a great number of legislative districts, and if you end up in the hole, who cares? There’s no real incentive for cost-cutting innovation, or spending less on the development and operation. This is true outside the space field, too.

You can tell exactly where NASA’s space projects are built by who makes the most noise in their favor in Congress. There are both Democrats and Republicans in that number.

NASA is spending a lot less having private companies move their goods (and eventually people) than they would be either having the Russians do it, or building and flying the machinery themselves.

NASA isn’t buying SpaceX components, assembling the rockets, or launching them. It didn’t come up with the development money. It’s paying for a service, and using less tax dollars than they would be otherwise. This leaves NASA more money to do other things.

The Space Launch Liability Indemnification Act.

Unlike a lot of other space enthusiasts, I’m personally not convinced this subsidy is necessary. The airline industry handles its own third party liability, using a system of pooled insurance companies started back in the 1920s, when the airline industry was as small and new as the space industry is now.

It just doesn’t seem to be an example of private industry, yet.

The taxpayer is paying for the effort the entire way.

It’s not a “bad” evolution, a proper function of government, a proper evolution into more private money, but not what I would call “private enterprise”.

MicroSoft is an example of private enterprise, wherein R&D was privately funded. Starbucks is private enterprise. SpaceX is not. at least not yet.

When the government is the customer, it’s the government. SpaceX has a contract to send cargo to the ISS, at a price lower than NASA was paying the Russians to do it.

It would be interesting to know who pays, directly or indirectly, the insurance premiums for these missions.

And you are correct about the 2 centuries being a bit much. I was thinking of only one mission under competition, not several. The drain in private industry, though, would become a bit “titanic,” possibly resulting in a trickle-down that would replenish the middle class and provide a stepping stone for the poor.

Kind of interesting when you consider all the angles.

I am not saying that those projects are never worth it, but I am saying that private industry can be amazingly efficient and effective doing damn near anything, once they smell profit.

I believe it will be private industry that will make us a space faring species. They will get some help from government along the way but the drive will come from profiteers.

I think you’re in for a very pleasant surprise. For example, SpaceX is planning on launching a rover to the Moon in 2015, and the vehicles they have could easily put a manned Dragon capsule around the Moon and back in a few years.

The Titanic was funded privately by J. P. Morgan and the International Mercantile Marine Co.