WASHINGTON, February 11, 2018: On February 6, SpaceX, a private company, launched the Falcon Heavy, the most powerful operational rocket ever made. More than 100,000 spectators at Florida’s Cape Canaveral launch site and millions more on the internet watched the thrilling spectacle live, thrilling to the latest example of how free enterprise might catapult us back to a promising American future.
Not only was the launch of this behemoth a breathtaking scientific marvel. A few minutes after liftoff, the Falcon Heavy’s booster rockets came back to earth and landed vertically on the pricise spot at the Kennedy Space Center that SpaceX had pre-determined. Now, those boosters can be used again instead of disposing of them as NASA has done in the past, saving a substantial amount of money in the process.
This means that the Federal government may no longer have direct responsibility of sending satellites into orbit or carrying payloads to the International Space Station.
From the very beginning, NASA controlled the U.S. space program. While the agency made considerable progress, thickets of government regulations assured that NASA’s rate of progress would eventually pale compared to the rapid progress that may be seen once the private sector is fully invested is commercial space flight technologies.
Private enterprise will always provide a service or manufacture a product much faster, more efficiently and at a much lower cost than the government or a government agency. The reason is very simple. Business is motivated by profit. As a result, business is always trying to produce at the lowest possible cost while still maintaining maximum safety. Government workers have different motivations.
The SpaceX launch is just the beginning.
Under President Trump, the U.S. economy is returning at last to the basic principles of free enterprise. Lower taxes, minimal regulation and minimal government control, all hallmarks of free enterprise, are fueling an innovation boom. While it is difficult to predict what and how quickly thing will change, we can see the early signs today.
SpaceX’s success will renew the interest to explore outer space. To do that, new technologies will be developed that will find their way into products used by all of us.
Elon Musk is the entrepreneur behind SpaceX as well of a number of other companies like Tesla that produces electric cars and trucks. Musk has even developed a solar roof shingle that provides electricity to a home with shingles that look traditional and cost about the same as a standard roof shingle.
Free enterprise in action: Musk can raise capital.
Musk has been, and is likely to be, very successful because he is intelligent, foresightful and because he knows how to raise billions of dollars to finance often very risky ventures. Admittedly, some of his capital came from taxpayers through various government agencies. But the majority of his capital was raised in the private sector.
Although taxpayers, through government, ensure that there is proper infrastructure in place to enable innovators, the success of entrepreneurs like Musk depends upon the availability of capital, the freedom to follow their vision and a just reward if successful.
President Trump has set the stage for free enterprise ventures to succeed.
In the last year, President Trump has set the stage for entrepreneurs to innovate and flourish. Trump has removed burdensome and counter-productive regulations that previously stifled the animal spirits of free enterprise. This will clear the road to success.
Likewise, Trump’s revamping of the tax code will provide additional new capital and just rewards for success. Reducing the corporate tax rate from 35% to 21% was the most important part of the tax plan. The lower rate will increase net income for the company which yields a higher return on invested capital. That will attract new capital for firms looking to expand. The lower tax rate and resulting higher income, will increase the funds available to the firm, thus creating new capital.
Trump is also relaxing government controls on the banking industry. Trump is allowing energy companies to extract oil and natural gas from areas previously forbidden to them.
Watch for other major innovations.
Amazon has also been able to accumulate large amounts of new capital for investment. Already, the company has radically transformed retail sales. No longer do millions of Americans drive to the store to buy products. Now anyone can buy virtually anything online and Amazon will have the product on your doorstep with a day or two. Most other retailers are following Amazon’s lead.
The Trump economy will encourage Amazon to expand. They already purchased Whole Foods and they are launching a same-day delivery service that will soon expand to all Whole Foods locations. Amazon is, in fact, making investments to establish their own delivery fleet rather than rely on the standard carriers.
Partnering with JP Morgan and Berkshire Hathaway, Amazon will look to enter the extremely inefficient and way overpriced healthcare market. It will be interesting to see the results of that venture.
President Trump’s unleashing of free enterprise in America will produce amazing results. I can’t wait.