I think this is really insightful. Misallocation of resources is what eventually brings down economies. There are lots of bright people around, but corruption can drain a lot of talent.
SpaceX is everyone's favourite private sector success story, but they're basically just a younger, leaner version of Lockheed— surviving off of NASA and doing what they're contracted to do.
I don't think the private sector is ever going to do ambitious things like build rail infrastructure all on its own, nor is the current PPP model necessarily the way either, but maybe there is some option out there to get things done which looks like the bakeoff that NASA held with CRS.
Really this is more similar to VC investment where NASA funded it so they could get a return (better launches), but the future is that a probably large percentage of launches will be for commercial purposes (~50% of 2022 launches are for Starlink).
In 2020, SpaceX did 26 launches. Only six of those had NASA as a customer. The rest were a mix of US military, commercial customers, foreign governments (Argentina and South Korea), and Starlink. Even if you add up NASA and US military, that's still only nine out of 26 with the US government as the customer.
So while no doubt SpaceX does benefit from NASA's business, it is now only a minority.
There is no VC who would have accepted a pre-SpaceX pitch for low cost launches, Starlink, or any of the rest of it. It would have been straight up "lol Iridium amirite, get out."
SpaceX was funded by Elon Musk and later, Draper Fisher Jurvetson and Peter Thiel's Founder's Fund. Starlink has been in part funded by a $1 billion investment from Google and Fidelity. And since then further funding rounds have been raised.
The DFJ and Founder's Fund investment was before SpaceX had any substantial NASA development contracts, let along their 2008 $1.6 billion launch contract.
Until the Dragon demo flights in 2012-2013, I think SpaceX would have been hard pressed to raise significant capital from anyone other than Elon's friends. I think the fact that so many private space companies have one or more wealthy benefactors bears this out (Blue Origin, Virgin Galactic, Armadillo to a lesser extent).
Another Musk inspired project is the hyperloop and of course the Boring tunnels for electric cars. These are novel transportation solutions that solve for the problem in a more creative way than simply "build more light rails". That's the type of stuff a government will never come up with. There needs to be a creative maestro with massive capital. Musks are rare in the world but they certainly can move in a more agile way when they do appear.
I would also argue, telecommuting has solved for some of the transportation problems alone. Think of how many less cars are on the road as a result of work from home.
Boring/Hyperloop don't have an idea like this. Boring's pitch is using conventional TBMs but making it cheaper by digging a smaller-diameter tunnel than the other guy. Does that meet the requirements? New subway systems are also reducing tunnel diameter by using LRVs instead of heavy rail cars... is there an actual innovation here?
Hyperloop is full of practicality issues, and addresses none of the real problems that are barriers to high speed mass transit projects today— specifically the fights over rights of way and station locations. The fact that it was initially pitched in 2013 as a system for moving around private automobiles should tell you a lot about how much understanding there is of the first principles of transportation— it wasn't until years later that this was acknowledged and corrected [1]. It would be like someone proposing an airline where each plane carries 10 cars instead of 400 passengers ("so convenient, you just drive right on board!")— it doesn't matter how fast the trains are, 840 passengers per hour for a Hyperloop would be a complete nonstarter when a normal subway does 40k/hr.
Maybe Boring/Hyperloop will end up pivoting into something worthwhile, but at the moment there is good reason for skepticism.
[1]: https://www.masstransitmag.com/technology/news/12402366/elon...
The cost of reusing a rocket has not been proven to be cheaper than building a new rocket. Consider factors like the inability to reuse the entire rocket, the reduced payload. At best you can break even. Unless you somehow reuse the entire rocket and do 100 flights with the same rocket the savings are meager.
This isn't something new. The space shuttle suffered from the same issues. Building new shuttles was almost the same cost and less risky.
But now that the basic principle has been proven, really leaning into it is part of the point of Starship— a new clean sheet design that is built for full reusability from the get go.
He just took the 100 year old vac train concept and repackaged it. Back in his original pitch he constantly said and laughed how easy it is. Once the years went by he slowly backed off from every promise and ultimately reduced his involvement to 0.
> of course the Boring tunnels for electric cars.
He promised to make tunnel boring cheaper, yet his only tunnel costs exactly as much as every other tunnel. He constantly advertises 150mph travel when the tunnel isn't even long enough to reach that speed. Have you seen the tunnel? It's so tiny you can't even open your doors if you get stuck in there. If even a single car fire starts in that tunnel everyone in the tunnel will die.