How to Subsidize Space Transportation

There are a variety of ways to subsidize space transportation. Rand’s idea to implement my proposal is a good one. I chose the $15 billion number not because I thought it was the minimum necessary to kick start the industry, but to beg the question about what we are getting from NASA for the same amount of money. I do not propose to use new spending.

Instead of an auction for launch services, followed by a delivery of cash on completion of the launch there are several other ways to implement a subsidy:

  • Have a box on the launcher’s corporate tax return that says payload to orbit
  • Have a box on the customer’s corporate tax return that says payload to orbit
  • An application like student aid or a federal housing loan with a fixed subsidy level that is adjusted periodically based on the rate of takeup

Rand’s auction is simple and would set the price in advance of flying which would be good.

As for popularity, it will take someone like Eisenhower or Kelly to make this happen. If someone can make the case for California stem cells, the case for space access ought to be possible.