Capitalism Bad Kritik Wave 1 Sophs


Link --- Government Support for Space Development/AT: Aff = Socialist



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Link --- Government Support for Space Development/AT: Aff = Socialist

The government is beginning to allocate scarce resources to commercial ventures in space --- acting as venture capitalist


Greenberg 92 (Joel S. American Institute of Aeronautics and Astronautics, Space Economics, Vol. 144, google books, p.324-325)

As the government has become active in promoting the commercial development of space, it has begun to, in essence, play the role of a venture capitalist and/or investment banker providing its scarcest resources (the use of funds, infrastructure, and personnel) to help initiate commercial ventures that are in the public interest. As a result, government, and in particular NASA, must also act as a venture capitalist and/or investment banker by evaluating the potential impacts and benefits that will result from its “investments.” NASA must ensure that its resources are allocated efficiently; i.e., resulting benefits will be maximized and benefits exceed costs. This implies that NASA must evaluate private-sector business ventures by performing financial analyses, making market forecasts, and so forth, and estimating the likely consequences of its investment, including the likelihood of achieving benefits. (NASA’s Office of Commercial Programs released a Request for Proposal in December 1989 with the subsequent award of a contract for the provision of financial analysis services for evaluating private-sector commercial space ventures seeking government support.) It must evaluate the appropriateness of making new investments as well as terminating previously established investments. In order to understand the rold of public-sector programs in encouraging the commercial development of space, it is necessary to have insight into private-sector investment decisions, how government actions may affect these decisions, and how the public sector should evaluate its investment opportunities. These are the main subjects of this article: to describe the ways that government programs can influence private-sector investment decisions and to develop a structure for assessing the likely effects of government programs specifically undertaken to influence private-sector investment decision. To accomplish this, private-sector investment attitudes must be understood. Results of a survey of investment attitudes are described. The investment attitudes are summarized quantitatively in terms of the likelihood of investment which is a function of expected return on investment (ROI), risk as measured as the variability or standard deviation of ROI, expected magnitude of investment, and expected payback period. A concept is also developed for assessing the impact of government programs through the investment likelihood function. Finally, the effect of various government actions of private-sector decisions is discussed in terms of the likelihood functions.



This is still true --- Obama’s beginning to promote private sector competition for space --- Constellation proves





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