Newsgroups: sci.space.history
From: henry@spsystems.net (Henry Spencer)
Subject: Re: How can Government best help Private Enterprise in space?
Date: Wed, 11 Aug 1999 16:39:32 GMT

In article <uk4s3.1777$7L.47994@typhoon01.swbell.net>,
Roger Pierce <rogerdp@swbell.net> wrote:
>...The best and most meaningful way to expand mankind's knowledge
>of the heavens is if the people do it (read: Government)...

No, I'm sorry, when I see "the people", I don't "read: Government".
The people and the government are two very different groups, often with
different goals and different priorities.

Indeed, all too often the way to put greedy, heartless corporations in
charge of something *is* to have the government do it, because the
government listens to big corporations much more than it listens to
individuals.  The government isn't building ISS; Boeing is doing that, and
you'd better believe that the congressmen and senators from Washington
state know it.

When I see "the people", I read that as "free enterprise".  Companies are
not mysterious evil monoliths; they are made up of, and funded by, people.
The way to get "the people" into space is to make it easier for small
companies -- the sort that can remain innovative and decent -- to get into
space.  Giving space to big bureaucracies, be they private or government,
is a mistake.

The way to have "the people do it" is to make it possible for ordinary
people to do it.
--
The good old days                   |  Henry Spencer   henry@spsystems.net
weren't.                            |      (aka henry@zoo.toronto.edu)

Newsgroups: sci.space.history,sci.space.policy,sci.space.shuttle,
	sci.space.station
From: henry@spsystems.net (Henry Spencer)
Subject: Re: How can Government best help Private Enterprise in space?
Date: Wed, 11 Aug 1999 15:49:57 GMT

In article <37B08555.C47C4C51@earthlink.net>,
Pat Kelley  <cpkelley@spacetrans.com> wrote:
>In answer to your question, tax incentives are probably the most
>equitable way for Govt. to provide financial assistance.  Any other
>form, such as loan guarantees and new X-programs always wind up with a
>Govt. agency selecting a "winner"...

Even tax incentives select winners:  they favor big companies, who have
other profitable activities and hence are *paying* taxes.  Small startup
companies, the source of a lot of the real innovation, often have little
income in their early years, and hence pay little or no tax anyway.

Tax incentives for *investors* in such ventures might be a different story.

>Permitting new space ventures to operate as revenue-generating entities
>while their vehicles are still in an experimental state...
>...passenger-carrying vehicles should be under the most stringent
>examination, since human life is at risk, but payload-carrying systems
>that can fly out of Govt. ranges should be given broad latitude.

Agreed, with one stipulation:  delete that "Govt. ranges" part and
substitute "suitably isolated spaceports".
--
The good old days                   |  Henry Spencer   henry@spsystems.net
weren't.                            |      (aka henry@zoo.toronto.edu)

Newsgroups: sci.space.history,sci.space.policy,sci.space.shuttle,
	sci.space.station
From: henry@spsystems.net (Henry Spencer)
Subject: Re: How can Government best help Private Enterprise in space?
Date: Wed, 11 Aug 1999 16:13:50 GMT

In article <7opouj$m6a$1@nnrp1.deja.com>,  <spacecadet@startrekmail.com> wrote:
>How can Government best help Private Enterprise in space?
>a)By legislation would make space more lucrative to business?
>  If so what kinds of bills/laws/tax incentive would work?

Most of all, the legal environment needs to be stable, predictable, and
sane.  That means reasonable rules about private property, liability,
regulation, etc., and a commitment (insofar as the government can give
one) that it won't all change again next year.  At present, "political
risk" -- the possibility that the government will step on you -- is a big
component of the risk in starting any space business.

>b)Offering some kind of 'X-prize' or making it easier for private
>  organizations to offer X-prize style awards

It's very, very difficult to establish any sort of government incentive
that doesn't discriminate against exactly the people who need it most:
the small, innovative startup companies.  Making it more attractive to do
private prizes might help, but it's not clear how best to do that.

>c)Do absolutely nothing

This is probably the single most important thing the government can do:
stay out of the way.  Almost any attempt to get the government involved in
something means putting the government in control of it, which will not
get the desired results.  We have to keep the government out of any area
where we hope to see competitive private industry.  It's hard, since space
has such a strong tradition of government-led operations.
--
The good old days                   |  Henry Spencer   henry@spsystems.net
weren't.                            |      (aka henry@zoo.toronto.edu)