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
The Next Market Crash | How To Get Rich In The 2023 Recession
What’s up Graham, it’s guys here. So I’ve got some good news and some bad news. The bad news is that more than half of Americans are already behind in the retirement savings. Elon Musk is bracing for a painful recession throughout 2023, and the housing ma…
After Largest Dam Removal in U.S. History, This River Is Thriving | National Geographic
Shinook 6055, coo, 115. We got 108. It depends on the species, but we have a broad range, and they’re all kids, from infants to basically teenagers. Seeing the evolution is what it’s ended up being. In particular, in the Nearshore, it’s been a dramatic t…
Marcus Aurelius - Stop Caring What People Think
In Meditations, Marcus Aurelius said, “Don’t waste the rest of your time here worrying about other people—unless it affects the common good. It will keep you from doing anything useful. You’ll be too preoccupied with what so-and-so is doing, and why, and …
National savings and investment | Financial sector | AP Macroeconomics | Khan Academy
In this video, we are going to use the GDP equation that we have seen before to think about how national savings relates to investment. Really, it’s a way to algebraically manipulate things to ensure that it fits with our intuition. So another way to thin…
Howard Marks & Joel Greenblatt on Value Investing
So I don’t think the reason people don’t beat the market is because the market is efficient or even close to efficient or not emotional. It’s very emotional. Or that it can’t be done. There’s all kinds of institutional and agency reasons and tons of other…
Do You Know Yourself? - Mind Field (Ep 8)
[soft dramatic music] - Hi, I’m Michael Stevens, but who are you? Do you even know who you are? Are you your memories? - I don’t remember that. - I don’t remember that at all. - Are you the choices you make? The focus tester is actually a magician. - That…