27.11.24

THE ADVANCE AUCTION OF STOLEN GOODS HEADS TO MARS.

Protecting competitors is not the same thing as protecting competition, but when the competition is for rents, rent-seekers seek protection.  "Musk gets a leg up from Trump in space battle vs. Bezos."

Stephen "Vodka Pundit" Green summarizes.  "Blue Origin hasn’t been able to compete so the company is crying to Capitol Hill — and garbage publications like Politico are happy to help.

The opening of the Politico article spells out the rent-seeking.
Elon Musk and Jeff Bezos have been locked in a bitter rivalry for supremacy in space exploration. Donald Trump’s return to the White House could boost Musk’s ascent.

As it stands, Musk’s SpaceX is the competition’s undisputed leader: It regularly sends astronauts into orbit, while Bezos’ Blue Origin has yet to launch anyone beyond the outer edge of space.

But Bezos’ company, even if far behind SpaceX, is seen as its closest American competitor, and the two companies have clashed in court over billions of dollars in government funding. More recently, their battle has become increasingly bitter, as the billionaires themselves traded barbs on Musk-owned X.

Now, as Musk spends weeks palling around with Trump at Mar-a-Lago after the election, their proximity has the space industry fearing that Musk could rig the space race in his favor by diverting billions of dollars in government funding to SpaceX. The chief threat to SpaceX’s peers is that Musk will aim to create a monopoly in the private space industry.

“People are concerned what’s in place to stop it,” said one space industry lobbyist granted anonymity to discuss private conversations about Musk’s influence. “You’re talking about two of the most unpredictable people in the world getting together. It’s not like chocolate and peanut butter, and you get a great combination. You’re talking about world dominance here.”
I'm sure the worrywarts will call attention to the potential conflict of interest of a man who owns a rocket company also heading up a commission that is looking into government waste.  Some history from defense contracting is relevant.  On the one hand the Pentagon would prefer to have at least two possible manufacturers of warships, fighters, bombers, and tanks.  On the other hand, the Pentagon sometimes objects to Congressional authorizations for ships or planes they might not have a use for, but there's a defense contractor wants to keep the works in Mississippi or California active and a senior Member of Congress looking for a constituent benefit to point to.
Musk’s SpaceX and Bezos’ Blue Origin have been dueling to be the most technologically advanced company in the private space flight sector. Investments from the federal government have propelled the companies but also forced them to compete over resources. The matter came to a head in 2021 when SpaceX snagged a multibillion-dollar contract for a moon landing mission and Blue Origin sued the federal government over it. Blue Origin lost that case but was later awarded its own contract to create other technology for a moon mission.
Politico writers being Politico writers, you know that Hailey Fuchs will raise the spectre of insider dealing.
The competition between Musk and Bezos is a microcosm of how industries are preparing to grapple with an administration that shows favoritism to its allies and vengefulness toward those who have not shown adequate deference to Trump. After he was first elected, Trump threatened new taxes on General Motors, blasted Merck for its pharmaceutical prices, and delivered a foreboding message about the end of Harley-Davidson.
That's how industrial policy works, dear reader.  Does anyone seriously think that all the green frippery of the Obama and Biden years isn't favoritism to allies and vengefulness to opponents?  And if Blue Origin are afraid of being "crowded out" perhaps their management might see the case for greater commercial freedom rather than more activist government.
On Capitol Hill, Blue Origin is trying to raise alarms about potential unfair advantages in the space race. The company has been arguing that any policy that crowds out competition and capacity in civil or military space business could hurt the country’s space program and national security, according to the person who works with Blue Origin. Another person familiar with Blue Origin’s Washington strategy said the company has been trying to remind those on the Hill that its technology will be flying soon and intends to be a competitor.
I concede that rocketry isn't retailing, and yet aren't there commercial satellite operators who might welcome bids for a new launch vehicle?  Did Amazon have to tell anyone in Washington they intended to take on Wal-Mart or Barnes and Noble?

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