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Chapter 103 of 125 · The Freeman 1987 by Foundation for Economic Education

A New Space Policy; J. B. Phillips

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Aerospace veterans Martin Marietta and McDonnell Douglas already have received orders for satellite launches. Despite this, America still trails the Soviet Union in satellite launches, and the Europeans and Japanese are quickly catching up. The launching of Sputnik in 1957 was taken by many Americans as a signal of Soviet tech nological superiority. To calm a frightened public, the U.S. government poured billions of dollars into the space race and, to this day, the American space program has been a virtual government monopoly. In the aftermath of the Challenger explosion, editorial writers and columnists across the na tion condemned the politicalization of NASA. However, they failed to realize that any agency whose budget is politically controlled-such as NASA-is eventually politicized. As Chal lenger demonstrated, when political expediency replaces scientific judgment, the results can be tragic.

Mr. Phillips is afree-lance writer based in Houston, Texas. Over the years, NASA's monopoly has been enhanced by subsidization, legislation, and reg ulation. Space Services Inc. President David Hannah Jr. told a Houston space conference shortly after his company completed its suc cessful launch: "I consider the slowest aspect of our program is going to be politics. Getting the necessary approvals from the State Depart ment and the United Nations is going to be much harder to work than the technical imple mentations. ' , In a report for the National Center for Policy Analysis, Dr. Jerry Grey, publisher of Aero space America, elaborates on this: "Private companies in the satellite communications in dustry must answer to 13 federal regulatory bodies, two international organizations, and four international treaties." Using Proven Technology Proponents of a government-run space pro gram argue that the vast capital and resources required for such ventures can best be obtained by government. But private firms are re sponding to this problem by moving toward smaller equipment and by using older, proven technology. This saves millions of dollars. Ad ditionally, many companies are forming part nerships on projects, such as Space Industries Inc. and Westinghouse, which are planning a joint space laboratory. McDonnell Douglas is looking for a partner to manufacture pharma ceuticals in space.

The costs of doing business in space are high, but so are the potential rewards. Compa nies which start small and use their profits to expand could quickly become major factors in 393 the development of space. Furthermore, once many of the risks have been eliminated, other firms will be more inclined to exploit the unique opportunities offered by space. Some backers of NASA contend that there are parallels with the federal government's role in the development of the early West. Space, they argue, is merely another frontier to be conquered. While this is true, it must be noted that the government's role in developing the West was pretty much limited to protecting property rights, e.g., establishing the rules by which the vast tracks of unsettled land could be claimed, and building a series of forts to protect pioneers. The real development of the West railroads, mines, agriculture, etc.-was mostly a product of private enterprise.

When political expediency replaces scientific judgment, the results can be tragic. Until the Challenger disaster, the Shuttle was to be Arnerica' s principal launch vehicle. Ex pendable launch vehicles were to become obso lete. Consequently, when the Shuttle program shut down in the wake of the loss of Chal lenger, America was left without a dependable launch system, and U.S. satellite launches have fallen more than a year behind schedule. Private companies, by their very nature, will not all use the same launch vehicles. Martin Marietta will use its Titan rocket; McDonnell Douglas will use its Delta rocket; Space Ser vices will use the Conestoga, while American Rocket will use a hybrid vehicle. Thus, if one system fails, there will be others to fill the gap. There is an old adage about putting all your eggs in one basket. America's "space eggs" have all been placed in one basket-NASA and the consequences are painfully clear. It is time for a space policy which eliminates this government monopoly and allows America's entrepreneurs the freedom they need to reach for the stars. 0 394 The Unemployment Act of 1946 by John Semmens and Dianne Kresich G overnment in America has been on a spending binge for over 40 years.

The Freeman 1987

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