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Link Turn – Government Action Spurs the Private Sector



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Link Turn – Government Action Spurs the Private Sector


[____]
[____] Government action is needed for a private sector. The government must create a demand for companies to fulfill.
Christopher Chyba, Professor of Astrophysics and International Affairs at Princeton, 5/18/2011, Senate Committee on Commerce, Science and Transportation, Subcommittee on Science and Space. “Sen. Bill Nelson Holds a Hearing on Contributions of Space to National Imperatives”
What we have to do instead I think is twofold. We have to develop a kind of infrastructure or even you might even call it an ecosystem in low Earth orbit that has a variety of ways of encouraging the advance of human space flight and cost cutting in human space flight. And that includes this robust - encouraging this robust commercial sector. But in order to do that the government is going to have to provide demand pull; all right? It's going to have to provide the station as a destination. Not for make-work, but for important experiments and developments that will further enable human space flight. And also, let's hope - let's hope - this remains to be demonstrated, but let's hope there will turn out to be a commercial market, both with respect to suborbital flights and perhaps also with an additional private station-like inflatable entity that people want to go to. That remains to be seen. But I think that the government demand-pull alone is probably sufficient to get that ball rolling. But simultaneously, because the commercial sector independently is not there yet, we have to have the heavy launch vehicle capability that's going to allow us to move out beyond low Earth orbit. So I favor, I absolutely support, the authorization bill's approach to this. This is not - flexible path is not a mission to nowhere. It's a mission to expand human civilization into our solar system, the most ambitious possible space objective. But it tries to do it in a way that I think has the hope of being sustainable, of actually providing us with that future.

[____] The government must lead the way and demonstrate necessary technologies in order to promote true privatization.
Mike Wall, SPACE.com Senior Writer, 10/30/2010, “Want to Mine the Solar System? Start With the Moon”, http://www.space.com/9430-solar-system-start-moon.html
However, government leadership and investment will likely be needed to get these businesses off the ground, several panelists said. Some people in the aerospace industry are skeptical about the feasibility of extraterrestrial mining operations, Spudis said. To get them onboard, government should demonstrate the necessary technologies and know-how. "Let the government lead the way, and let the private sector follow," Spudis said. Government could also prime the pump for private industry, some panelists said, spurring demand for rocket fuel sold from orbiting filling stations. "An appropriate government investment can catalyze it," Greason said. "Government shows the initial demand and the private sector figures out how to provide the supply." The panel agreed about the transformative potential of extraterrestrial resource extraction.

Link Turn – Government Action Spurs the Private Sector


[____]
[____] Private industry can’t go it alone; it needs support from the government.
Vinita Singla, Reporter for the new York Post, 7/8/2011, “NASA Takes a New Route in Space Leadership”, CNBC.com, 8 Jul 2011, http://www.cnbc.com/id/43470129, CGW
Again, critics disagree. "In order to retain our capabilities we need both commercial and federally-led efforts," says Dr. Mark Lewis, a professor at the University of Maryland and former chief scientist of the U.S. Air Force. “Private industry can't go it alone. It would be like expecting private industry to develop a private fighter jet on its own. It's too expensive and would require too much speculative investment.” Space is certainly a modern growth industry, but it is a very broad one, which complicates the discussion of the space race. The global space sector grew for the fifth straight year in 2010, up 7.7 percent to $276.52 billion, based on the Space Foundation's annual study. The industry is expected to grow 5 percent annually until 2020, according to the UK Space Agency. The bulk of that money is from the private sector and for commercial purposes. For every orbital launch in 2010, there were 13 active satellites, a growing number of them dedicated to serving the broadband internet connectivity — hardly a great technological leap into the unknown. Total government spending is only a quarter of the money involved.
[____]
[____] The funding needed to develop space exploration technology means that the government must be involved.
Jeff Foust, Program Manager at the Futron Corporation and the editor and publisher of The Space Review, 7/26/2010, “Recasting the Debate about commercial crew”, The Space Review, July 26 2010. http://www.thespacereview.com/article/1671/1,
However, the magnitude of the funding needed to develop commercial orbital crewed spacecraft—hundreds of millions to perhaps billions of dollars—suggests that the government may be the only source of funding to support near-term development of such systems. Mcalister, who last year supported the Augustine Committee, noted that at the time a number of companies pitched commercial crew systems to the committee.Consistently, everyone said that without any government support, there was really no viable way for them to get a return on their investment,” he said. That conclusion was echoed last week by Boeing officials in Farnborough in discussions of funding development of the CST-100. “The money that NASA has proposed being invested allows us to close the business case,” said John Elbon, manager of Boeing’s commercial crew program. “It would be very difficult for us to make a decision to move out if there is no decision in Congress to support commercial crew.”


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