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The Current Health of NASA and Space Industry

Moderator - Let us begin by establishing the state of health with NASA itself. It is perhaps too easy to make fun of NASA. I think I myself cracked that if the Russian space programs was the most entrepreneurial organization in the former Soviet Union, NASA was the most socialist agency in our government.

Mr. Powers - The state of health is that NASA is in transition. We have a new administrator and there are a lot of welcome changes and I am sure there some that in some quarters are not so welcome. I personally have met our new administrator and I am very pleased with that meeting which is not something I might have said about previous meetings … I like to think our space product development program is a good sign for NASA. Back in the mid 80s Congress decreed that NASA would like up to its charter and would commercialize space to the fullest extent possible …

Unlike traditional NASA and government work our program does not directly fund any research. We do not do the research we do not select it. It is not NASA-driven. It is in fact industry selected and financed. All we are doing is provide companies with an opportunity to come in and try space and microgravity to see if it will benefit them and their work. In the process we are getting them hooked. A broad base of industry - everything from casting to agriculture is making use of it right now.

The one thing all of us up here will agree on is that the current cost to orbit is abysmal. It is the single biggest impediment to space commercialization there is. One of the reasons is that you cannot build a viable launch company predicated on three or so satellite launches a year. You've got to have a broad base of industry that is used to spending $1,000 per pound.

Moderator - Would someone like to take up the challenge that NASA works, and that the exploration of space is in a healthy state?

Mr. Anderson - I'd like to throw out the concept that providing below market cost for any service doesn't stimulate the private economy to provide that service. In fact damages the very people who might provide the same service at perhaps a higher cost short term, but ultimately become more efficient long term. As long as NASA competes politically by giving some people access to space and others not at a lower than actual commercial cost. It will continue to damage the commercial space industry in the United States.

Mr. Powers - I agree except for one thing. The fact is that there is nobody out there that's offering. If someone gets something that is a success they have to pay full freight. To be honest we'd like to find a private launch company to take some of the commercial companies that want to fly.

Moderator to Mr. Musk - As someone who wants to democratize space launch vehicles. Do you believe that NASA is doing a good job stewarding the space program?

Mr. Musk - NASA hasn't done a completely terrible job. I certainly think there are aspects of space exploration which are very, very difficult to commercialize. I'm not sure you could go around and collect funds for deep space science missions very easily. That's sort of a public good like a highway. It's something that's advantageous to a large number of people because it enhances our understanding of the universe and it's not something that can be very easily translated into commercial dollars. There needs to be some sort of government entity spending money in that manner.

Overall there are many good things that have been achieved by NASA. For example, the recent discover of water on mars is a good thing …NASA's done a good job when it comes to deep space missions. When it comes to the running of the space station and the shuttle - very sub optimal. This is a case, in my own frank opinion, of digging a ditch and filling it. The space station is digging a ditch and the shuttle is filling it. These are two programs which are unjustifiable in and of themselves and only justifiable if the other exists and that I would consider to be quite sub optimal.

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