It really bothers me to see billionaires who can’t find any charities to give to, rocketing off into Space at Cape Canaveral.
Musk as contractor
But then, Elon Musk is a government contractor. I can find nothing telling me what he’s paying Cape Canaveral back for regarding this flight, if anything. I’ve left a message with NASA public information but, somehow, don’t expect a call back.
But, I did receive a call back, a very pleasant one, and here’s what I learned:
NASA’s real property lease with SpaceX enables the company to launch government and commercial missions from Launch Complex 39A at NASA’s Kennedy Space Center in Florida. In addition to the lease of launch facilities, NASA Kennedy provides support to SpaceX – and to other commercial launchers – either through their leases or on a reimbursable basis. This support includes utilities; propellants; security, fire, and medical services; and the use of specialized launch infrastructure. Leasing unused government facilities to commercial companies allows NASA Kennedy to avoid costs associated with operation and maintenance while preserving the unique capabilities of the spaceport.
From an agency perspective, NASA’s public-private approach has helped grow an increasingly thriving commercial space industry, enabling reliable access to space for the nation. NASA can purchase launch services for its science and research needs, while industry can use those same services for fully commercial activities in space. The long-term efficiencies gained from a robust commercial space sector enables NASA to shift resources toward other objectives, such as long-duration human space exploration, while opening space to more science, more people, and more opportunities.
Space X and the government
SpaceX racked up $15.3 billion in awarded contracts since 2003, according to U.S. government records. Its most important businesses are launching astronauts and scientific missions for NASA and flying satellites for the U.S. military, Tim Fernholz wrote for Yahoo News.
Perhaps SpaceX owes us for its existence
But the truth of the matter is that without a $1.9 billion government contract in 2008 to launch satellites for NASA, SpaceX may well have gone under. At the time, Musk was struggling to develop both SpaceX and Tesla. While he was rich, perhaps he wasn’t THAT rich.
And since then SpaceX has worked with NASA to develop space vehicles like the Falcon 9 and Dragon that it can then offer to private customers. These public-private partnerships have saved money for the government while helping to create a surge in private space activity. But Musk didn’t do this alone. He had OUR help.
Subsidies for broadband too
SpaceX’s Starlink also has been approved by the FCC for satellite internet service, primarily for rural areas. But the FCC upheld Starlink’s appeal for $885 million in government funding to help this service along, saying the signal doesn’t meet the strength needed for the extra funding.
Then there’s Tesla
Tesla, too, has benefitted from, this time, outright subsidies created by the federal government to develop electric cars. Obviously, we hope these willo help reduce carbon omissions, though, of course, the car’s electricity must be generated some way. (I have a friend with an EV, who powers it with a solar cell at his house.) Anyway, Tesla, received a $465 million preferencial loan from the U.S. Department of Energy, a loan it paid back within three years.
Tesla tax credits
Then, through 2020 the company benefited significantly from tax credits that consumers received for buying Teslas. They helped cut the price by $4,000 to $7,500. Then there are state and local subsidies to support manufacturing facilities. Estimates are these total some $3 billion.
Enjoy watching!
So enjoy watching the rich guy’s space walk. He’s testing out a space suit that is said to be useful for future flights, walks on the moon and long-term community development and life on Mars. Somehow that doesn’t seem to be in my plans.