Category Archives: Business

Jumping The Broken Windows Shark

OK, so according to Paul Krugman, Alderaan should be the richest planet in the galaxy:

People on twitter might be joking, but in all seriousness, we would see a bigger boost in spending and hence economic growth if the earthquake had done more damage.

Well, if he means that if Washington had been destroyed, as I (jokingly) suggested (and some anticipated) earlier, he might have a point, but I doubt that’s what he means. I really think he’s serious.

[Wednesday morning update]

Krugman is claiming that he didn’t write it, and it was a case of identity theft.

[Update a few minutes later]

The identity thief ‘fesses up.

The SLS Debate

Continues ad infinitum at NASA Watch, with the usual illogic from the usual suspects. This is a good analogy:

SLS is like Columbus postponing his voyages to try to build the world’s largest ship, using all the funds available to him for many years to do so. Instead of outfitting three modestly-sized ships with the crew and provisions to set out as soon as he can, Columbus spends many years to build an enormous ship. Meanwhile, no exploration is done. And Columbus makes sure the shipbuilding employs lots of people in key cities in Spain for political reasons, instead of designing the ship as efficiently as possible. In the end, the English beat Columbus to the New World because by the time Columbus finishes his ship, he can’t afford the crew or provisions for it, and the costs of simply maintaining the ship while it sits in its harbor are too high.

It reminds me of the story of Don Miguel de Grifo.

This is another good analogy:

Building SLS is like re-creating Saturn V without doing the rest of the Apollo program at the same time. It would result in SLS being cancelled, just as Saturn V was, for cost reasons, but without ever flying anything useful, because we weren’t doing another Apollo at the same time.

The only programs that could possibly use SLS would be hugely expensive and take a long time to develop. So if we finished SLS without working on the programs that would use SLS at the same time, we’d end up with a hugely expensive SLS draining money for many years before the payloads could possibly be ready, even if by some miracle all that huge amount of money appeared from somewhere (the Apollo program budgets were far greater, as a share of GDP, than NASA’s current budgets).

But some people just can’t get it. I can understand why rent-seeking senators want to fund this jobs program, but I don’t understand why any sensible space enthusiast does. But then, I guess that question answers itself, doesn’t it?

Seven Suborbital Spaceships

Here’s the story that I pitched to Popular Mechanics last week, but Michael Belfiore beat me to it. Oh, well, he probably did a better job than I would have, anyway. I see now that Near Space isn’t really suborbital — it’s a high-altitude balloon ride. Good for extended upper atmospheric research, not so good for weightlessness.

Luxury Space Hotels?

I find this story kind of incredible. The hotel itself seems feasible enough, but how in the world do they expect to get the cost down to less than $200,000 per person? And the comments are hilariously clueless. I particularly liked this one:

As much as I would love to go to space, I think it would get very boring after about 5 min of looking out the tiny window. you would be seeing the same view for 5 days, and who seriously is going to look out of the window the whole time? the rest of the time you’re spending it in cramped quarters. I really feel humans do not belong in outer space.

“Feel” is the operative word here. This is clearly a person who doesn’t do much in the way of real thinking.

Entitlements Someday

…but first things first:

…nearly half of the current deficit can be clearly attributed to the downturn.

That’s a deficit increase that would have happened in an economic crisis whether Republicans or Democrats controlled Washington. But it was the specific spending excesses of President Obama and the Democrats that shot the deficit into the stratosphere.

There is no line in the federal budget that says “stimulus,” but Obama’s massive $814 billion stimulus increased spending in virtually every part of the federal government. “It’s spread all through the budget,” says former Congressional Budget Office chief Douglas Holtz-Eakin. “It was essentially a down payment on the Obama domestic agenda.” Green jobs, infrastructure, health information technology, aid to states — it’s all in there, billions in increased spending.

What was increased can be decreased. All it takes is wised-up voters.