yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Why would NASA outsource missions to SpaceX? | Peter Ward


2m read
·Nov 3, 2024

One of the greatest criticisms leveled at NASA is that they don’t take enough risk, and that’s for good reason. You’ve seen that they have had tragedies in their past. They had the Challenger disaster. They’ve had two tragedies in the shuttle program alone. And we saw whole crews die in those.

And that makes you nervous. That’s bad for PR. That’s bad for a government. That’s bad for a president. If you see these national heroes who are supposed to be going into space to further the species and get glory for the country, and they don’t come back, that aside from being a terrible, terrible thing is also extremely bad PR, and it did affect NASA a lot.

And what we’ve seen now is NASA has shifted some of that risk. NASA’s role has changed. Back then they would be a contractor, and they would tell companies to build them a specific part of a rocket. But they would do the whole mission themselves.

Now we see NASA is more of a client, so it’s shifted the responsibility and the risk to SpaceX. SpaceX is basically selling NASA a ride to the international space station. So if something were to go wrong—and thankfully as the years go on it’s less likely that something will go wrong—NASA doesn’t have as much of that risk.

It doesn’t have as much responsibility, I guess. It will come under fire for hiring SpaceX, but ultimately anything bad that would happen would be on SpaceX’s shoulders. So you’ve seen NASA has switched, has taken the risk and put it onto the private companies.

And the private companies are much better equipped to deal with that risk. They don’t have to elect their CEO every four years, for example. They don’t have to answer to a whole country, and they can go ahead and do things that other people couldn’t.

And you’ve seen it in America in the past, actually. You saw the railroad expansion. America used private companies to do that. It wasn’t the government. They gave them huge amounts of land and said go and build us a railroad system, and there are actually a lot of similarities between those two scenarios.

A lot of people see Elon Musk’s SpaceX and Jeff Bezos’s Blue Origin as the railroad companies who are being tasked with connecting us with another frontier, essentially.

More Articles

View All
Co-Founder Equity Mistakes to Avoid | Startup School
[Music] Hello, I’m Michael Cybal, and today I’m going to talk about co-founder equity splits and co-founder breakups. To be clear, we want people who are building tech software startups that they expect to be VC funded. You know, this is advice for you. …
Ray Dalio: The Investing Opportunity of a Generation
Yes, crash was negative, right? One and a half, two percent real rates—terrible! Now cash is relatively attractive. Ray Dalio is a billionaire and one of the most highly respected investors in the world. He has been investing for 50 years, meaning he kno…
Substitution and income effects and the Law of Demand
In other videos, we have already talked about the law of demand, which tells us—and this is probably already somewhat intuitive for you—that if a certain good is currently at a higher price, then the quantity demanded will be quite low. As the price were…
Trump-Putin call puts Ukraine in unfavorable position ahead of peace talks
It finally happened: US president Donald Trump held his first official phone call with Russian President Vladimir Putin after re-entering office, and as many feared for months, things look bad for Ukraine. Having run his campaign on the promise to end Rus…
Molecular evidence for evolutionary relationships examples | High school biology | Khan Academy
An investigation was carried out on four different plant species to determine which of three species was most closely related to an unknown plant species. The results of the investigation are shown in the data table below. Which plant species appears to b…
My Life As an Adventure Filmmaker and Photographer (Part 3) | Nat Geo Live
Mike Libecki: This guy has completely changed my life. I met Mike in 2012. We did an expedition to Greenland. This is a picture of Mike after a trip we did when we went to China, Kyrgyzstan border. We did a big rock climb, and we lived, you know, when you…