Was the Space Shuttle Worth It?

Was the Space Shuttle Worth It?:

But there is another sort of calculation problem that faces government-funded science, beyond the questions of average versus marginal costs, or whether or not to count inflation, or whether or not a particular expense is shuttle-related. This calculation problem afflicts every form of government spending: What is the opportunity cost of the government's spending? All those resources used for the shuttle program had to come from somewhere. As Ludwig von Mises pointed out as early as 1920, it is impossible for a government that is dispensing with the market process to make the vital calculations of costs and benefits that would be necessary to make efficient resource allocations for society.

The problem of unknowable opportunity costs puts a dent in the idea that government science programs create a "multiplier" that generates more than their cost in private-sector advancements. The research, new technologies, and discoveries that might have been products of the space-shuttle program exist in the shadow of other research, technologies, and discoveries that might have been produced with the resources had they remained in the private sector. Any NASA "multiplier" exists because a private-sector multiplier has been destroyed.

Sadly, the memorable theatrical displays NASA has produced over the years have distracted from the true costs of government enterprises. We are tempted to regard the federal government's space program as a bright symbol of American greatness, when in fact it has been a hindrance to American ingenuity and prosperity.