More frequently than on occasion, the space industrial base and space related industry rely on regulatory capture, or the use of non-market solutions for success, and sometimes, for survival.

Two very recent items come to mind, the $100 million grant provided to four U.S. satellite providers and the $40 million tax incentive proposal regarding commercial space.

Perhaps the real lesson learned regards the value of lobbying, because these sorts of government intervention are likely to result in excess space capacity and market distortions.

As the saying goes, subsidize something and you’ll get more of it; tax it and you’ll get less.

  1. Steve Low says:

    Is there really any money to be made?

    In the beginning it was simply to beat the Russians to the moon, after they beat the US into space.

    When did it become comercial?

  2. […] How do you make money in, to, through, or from space?  As always, sell space services and/or hardware to the government. […]

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