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01 / 05
‘Space Barons’ & Advantages of a Free Economy

Blog Post | Space

‘Space Barons’ & Advantages of a Free Economy

Inequality is the midwife of progress, which depends on the flourishing of the talented.

Summary: Private entrepreneurs are opening up new frontiers of space tourism and innovation. Inequality is a driver of progress, and competition and efficiency is likely to eventually make space travel more affordable and accessible. This article challenges the negative portrayal of these pioneers as exploitative and greedy, instead celebrating their achievements as examples of human ingenuity and freedom.


On July 11, 2021, the British businessman Richard Branson fulfilled his lifelong dream of flying into space. At 8:40 a.m., Branson’s Virgin Spaceship (VSS) Unity 22 and its mothership Eve took off from Spaceport America in New Mexico. Having reached an altitude of over 50 miles, which is the U.S. government’s definition of space, and zero gravity, Unity 22 delivered the crew, consisting of Branson and five Virgin Galactic staffers, safely back to Earth. The flight, which was a culmination of 17 years of planning, research, development, and extensive safety testing, could mark the beginning of commercial space tourism.

It is difficult to overestimate Branson’s accomplishment. Our ancestors used to stare at the night sky, imagining an ethereal world populated by powerful and vengeful deities in need of appeasement. Today, a number of private companies, including Jeff Bezos’s Blue Origin, are pursuing goals that are similar to Branson’s: to bring space travel to the masses. Initially, the thrill of space flight will come at a steep price—Virgin Galactic tickets sell for $250,000 per flight—but thousands of relatively well-off people throughout the world can look forward to seeing our beautiful planet from above in the coming decade.

How, then, did parts of the American clerisy choose to commemorate Branson’s achievement? The headline “British billionaire Branson flies above 50 miles in his space plane, becoming first ‘space baron’ to qualify for astronaut wings” conjures up images of 19th-century American businessmen, such as Astor, Carnegie, Hearst, Mellon, Morgan, and Vanderbilt, who used supposedly exploitative practices to amass their wealth. Perhaps the most hated of these figures was J. D. Rockefeller, whose Standard Oil Company’s share of the refined-petroleum market increased from 4 percent in 1870 to 85 percent in 1880. Often forgotten is that Standard Oil reduced the price of refined oil from more than 30 cents per gallon in 1869 to 8 cents in 1885.

Sure, Branson, Bezos, and other space entrepreneurs are going to grow richer still, but competition, economies of scale, and the concomitant efficiency gains are bound to reduce the price of space tourism over time. The cost of the Ford Motor Company’s Model T, for example, fell from $825 in 1909 (or 4,853 hours of work at a blue-collar wage of $0.17 per hour) to $360 in 1927 (or 692 hours of work at a blue-collar wage of $.52 per hour). That amounts to a time-price reduction of 86 percent. The once-close-to-unattainable luxury is now ubiquitous, with 93 percent of U.S. households having access to at least one car in 2019, according to the Federal Highway Administration.

The same is true of electricity, plumbing, radios, refrigerators, clothes washers and dryers, air conditioners, dishwashers, color television, microwaves, computers, cellphones, VCRs and DVD players, etc. What’s more, the speed of adaptation of new technologies, as W. Michael Cox and Richard Alm of Southern Methodist University have shown, is increasing. It took about half a century from the invention of the telephone to the time when 50 percent of U.S. households owned one. In contrast, after only twelve years of smartphones hitting the stores, 50 percent of individual Americans possessed one. That is what the Austrian economist Joseph Schumpeter had in mind when he noted that the

capitalist engine is first and last an engine of mass production which unavoidably also means production for the masses. . . . It is the cheap cloth, the cheap cotton and rayon fabric, boots, motorcars and so on that are the typical achievements of capitalist production, and not as a rule improvements that would mean much to the rich man. Queen Elizabeth owned silk stockings. The capitalist achievement does not typically consist in providing more silk stockings for queens but in bringing them within reach of factory girls.

In fact, I am willing to extend a $10,000 wager to the editor at the Washington Post who came up with the “space baron” headline that in ten years’ time, a Virgin Galactic flight equivalent to the one taken by the British billionaire will cost less in terms of hours of work than it costs today.

Over at NBC News, the headline read “Richard Branson space flight beats out Jeff Bezos. But all of humanity loses.” According to the author, Chandra Steele, “the stratification of who gets to leave the stratosphere is not another division we need.” In the past,

astronauts did not go in the stead of the rest of the planet; they were pioneers on behalf of the rest of the population. . . . It seems unlikely that the billionaires who travel to space will engage in a meaningful way with the broader population afterward, in part because they’re so far removed from other people. In fact, their privilege has put them at such odds with Earth’s inhabitants that many don’t want them to come back.

Where to begin? First, the word “privilege” does not mean what Steele appears to think it means. The English word “privilege” derives from the Latin privilegium, which, in turn, consists of two Latin words: privus (private) and lex (law). And so, for about 2,000 years, privilege meant “a law for just one person, a benefit enjoyed by an individual or group beyond what is available to others.” In a highly stratified society, such as Europe before the Enlightenment, different groups enjoyed different privileges and guarded the latter jealously and, sometimes, violently.

During the Enlightenment, privileges, such as serf duties owed to the nobility and the tax-exempt status of the clergy in France, came under sustained attack from the advocates of equality before the law. Since the French Revolution in 1789, which “adopted equality of taxation and redemption of all manorial rights” (in the words of the historian Georges Lefebvre), the use of the word privilege steadily declined, Google’s nGram viewer shows, until it was resurrected about seven years ago by the American Left and perverted to denote “luck,” “fortune,” “advantage,” or “opportunity.”

Branson’s success rests in the British billionaire’s propensity toward entrepreneurial insight and a good measure of hard work, rather than an entitlement or “privilege” granted by the state. Though, in fairness to Steele, it is perfectly understandable why the equalitarian Left would want to blur the lines between privilege as “good fortune” and privilege understood as inequality before the law. In the world inhabited by Homo progressivus, talent and conscientiousness (not to mention other important desiderata, such as intelligence) are distributed equally and differences in socioeconomic outcomes must be a result of systemic forces, rather than sheer dumb luck. And that, progressives believe, is a legitimate subject of government interest and correction.

Second, Steele asserts that “all of humanity loses” from commercial space tourism, presumably because, as she notes elsewhere in her article, space exploration used to lead to “a unifying commitment” to “improving life on the planet,” whereas now space tourism is at risk of becoming just a plaything of the wealthy. That’s nonsense. Branson and Bezos do not detract from space exploration; they add to it. The dawn of commercial space tourism does not mean that Steele’s preferred way of space exploration (i.e., one paid for by the taxpayer) has to stop. The European Space Agency, NASA, and the Russian and Chinese governments are in no way impeded from doing what they have been doing for decades—albeit slowly and expensively.

Third, Steele writes that unequal access to space, which she calls “stratification,” is “divisive.” That assertion, which is unsupported by any empirical evidence, could be interpreted as an expression of Steele’s personal disappointment at being unable to do what Branson did. The conclusion of her article, in which she notes that “it’s unsettling to watch them [Branson, Bezos, and Elon Musk] flex the power to leave the planet, particularly in such troubled times,” certainly points in that direction. Be that as it may, Steele misunderstands the role that “inequality” plays in fueling all kinds of human progress.

Let’s start with economics. The financially well-off, who will be the initial customers of Branson’s and Bezos’s ventures, will infuse both enterprises with cash that will, in turn, result in more spaceships being built. Attracted by the scent of profit, other space-travel companies will be launched. Competition and additional supply will reduce the price of space travel until, one day, it will come within reach of NBC columnists. That’s how a mobile phone went from the “greedy” hands of Gordon Gekko in the 1987 movie Wall Street into the pockets of Kenyan farm workers and Bangladeshi fishermen.

Let’s now turn to politics and society. The American Revolution led to a representative form of government that set the United States apart from all other political entities on earth. True, the franchise was highly restricted (mostly, though by no means exclusively, to propertied white men), but a much greater share of Americans got to choose their own government than was the case elsewhere. That resulted in a kind of institutional inequality—one that other nations first observed, then found uncongenial, and finally deemed worthy of eliminating by becoming more democratic.

Or take the Enlightenment, with its emphasis on reason, liberty, and dignity, as well as religious toleration, freedom of expression, pursuit of happiness, equality before the law, etc. It took centuries before the values of the Enlightenment were more or less fully implemented in the West. But, over time, Western societies grew more tolerant and freer. That too resulted in global inequality in such things as the treatment of women, ethnic and racial minorities, homosexuals, children, etc. And while the values of the Enlightenment may be in retreat in some parts of the world, including the West itself, remember that for decades oppressed people in dozens of countries aspired to close the Enlightenment gap and become more Western.

Finally, let’s look at culture. The Soviet bloc was economically stagnant and socially retrograde, and culturally (as well as environmentally) it was a wasteland. Relative to the West, communist art was highly stylized and uninspiring. Its literature (with the important exception of persecuted writers, such as Solzhenitsyn and Pasternak) was stultified and unreadable. Its film industry was primitive, ponderous, and propagandistic. Its fashion and design industries were close to nonexistent. And so, throughout the communist period, the captive nations behind the Iron Curtain longed to wear American jeans, read American magazines, watch American movies, and listen to American music. In a word, they wanted to close the cultural gap by becoming more American.

The Harvard University psychologist Steven Pinker once quipped that “intellectuals who call themselves ‘progressive’ really hate progress.” The question is: Why? Perhaps one of the reasons for that curious attitude is not the clerisy’s opposition to progress as such, but to the means by which that progress is being achieved. Since the Enlightenment, we have become richer, healthier, better fed, longer-lived, more educated, and, as Pinker himself showed, gentler and nicer. Not only did most of that progress come about in free-enterprise countries during the free-enterprise era, but progress happened despite the constant warnings from the clerisy that free enterprise would achieve the exact opposite.

Inequality of outcome is inherent to a free economy, which tends to reward the most talented. Since talent is unequally and arbitrarily distributed, free enterprise and its resulting inequality of outcome are unpalatable to the equalitarian Left. Yet progress depends on the flourishing of the talented. That means that inequality is truly the midwife of progress. And that’s why progressives hate progress.

A version of this article appeared in National Review.

Washington Post | Health & Medical Care

FDA Authorizes AI-Driven Test to Predict Sepsis in Hospitals

“Bobby Reddy Jr. roamed a hospital as he built his start-up, observing how patient care began with a diagnosis and followed a set protocol. The electrical engineer thought he knew a better way: an artificial intelligence tool that would individualize treatment.

Now, the Food and Drug Administration has greenlighted such a test developed by Reddy’s company, Chicago-based Prenosis, to predict the risk of sepsis — a complex condition that contributes to at least 350,000 deaths a year in the United States. It is the first algorithmic, AI-driven diagnostic tool for sepsis to receive the FDA’s go-ahead.”

From Washington Post.

BBC | Conservation & Biodiversity

How AI is being used to prevent illegal fishing

“Global Fishing Watch was co-founded by Google, marine conservation body Oceana, and environmental group SkyTruth. The latter studies satellite images to spot environmental damage.

To try to better monitor and quantify the problem of overfishing, Global Fishing Watch is now using increasingly sophisticated AI software, and satellite imagery, to globally map the movements of more than 65,000 commercial fishing vessels, both those with – and without – AIS.

The AI analyses millions of gigabytes of satellite imagery to detect vessels and offshore infrastructure. It then looks at publicly accessible data from ships’ AIS signals, and combines this with radar and optical imagery to identify vessels that fail to broadcast their positions.”

From BBC.

Blog Post | Communications

The Forgotten War on Beepers

Before smartphones, beepers were in the crosshairs of parents, schools and lawmakers.

30 years before parents and lawmakers sought to save youth from smartphones via age limits and bans in schools, a similar conversation took place about a pre-cursor to the cellphone: pagers.

Through the 1980s pagers became increasingly popular with teens, and also: drug dealers. This fact would eventually drag the gadget into the existing moral panic about adolescent drug use of the era.

The pager panic began with a 1988 Washington Post report on the gadgets prevalence in the drug trade, quoting DEA and law enforcement officials. The piece was syndicated throughout the US under headlines like “Beepers flourish in drug business,” “Beepers Speed Drug Connections” and “Drug beepers: Paging devices popular with cocaine dealers.

The spread of the story stoked concerns that beepers in the hands of youths weren’t just a distraction – a common complaint from teachers – but also a direct line to drug dealers. One school district official told The New York Times: “How can we expect students to ‘just say no to drugs’ when we allow them to wear the most dominant symbol of the drug trade on their belts.”

How can we expect students to ‘just say no to drugs’ when we allow them to wear the most dominant symbol of the drug trade on their belts

The New York Times, 1988

In response schools, towns, states and even the Senate would pass rules against beepers. New Jersey prohibited beepers for under-18s entirely, possession could result in a 6-month jail-term – a law proposed by ex-policeman and Senator Ronald L. Rice.

A city ordinance in Michigan mandated 3-month jail terms for children caught in possession of one within school grounds. Chicago passed a ban that its Public Schools Security chief said would also reduce prostitution:

We’ve got girls 11 years old. They get a call and they’re out of school to turn a trick.

George Sims, Chicago Public Schools Security Chief , Associated Press

Other states proposed community service, fines and 1-year drivers license bans as punishment. Thousands of of young people were victims of these heavy handed prohibitions – some of which made headlines:

Some schools regularly referred students found with pagers to police, one 16-year-old – Stephanie Redfern – faced a disorderly persons charge. A 13-year-old was handcuffed. Chicago was particularly aggressive in its enforcement: over 30 children were arrested and suspended for ‘beeper violations’ in one police sweep at a school – many parents couldn’t locate their kids for more than 6-hours. This was just the start:

According to Police Lt. Randolph Barton – head of the Chicago public school patrol unit at the time – by April 1994 there had been 700 beeper arrests in Chicago schools, with the prior school year seeing 1000. Some still felt these numbers were too low:

Right now I don’t think enough people are being arrested for wearing or bringing beepers into Chicago schools.

Ald. Michael Wojcik (35th)

In 1996 a 5-year-old in New Jersey was suspended for taking a beeper on a school trip, outrage ensured – catching the attention of Howard Stern, leading to calls for the laws to be amended or repealed.

Even young adults didn’t escape the beeper prohibition: 18-year-old Anthony Beachum feared a jail term after trying to sell a beeper to a student on school grounds. State prosecutors sought a criminal conviction for Beachum – that would have barred him from his hopes of joining the military. The judge settled for probation and 10 hours of community service.

Hampton University required students register beepers with campus police, even though there was no evidence of them increasing drug access. VP of student affairs at the time would admit as much:

There is not a single case where I can make a connection between beepers and drugs.

Hampton University, VP of Student Affairs

Big Beeper Fights Back

The beeper backlash was a BIG problem for Motorola who had 80% of the pager market at the time. The company had a hit on its hands – that was introducing the brand to a whole new generation – so in 1994 it fought back, partly by rallying youth. A move reminiscent of TikTok’s recent lobbying tactics.

Motorola enlisted children of its employees to help design pro-beeper campaigns, emphasizing the importance of pagers as legitimate communication devices for the young. “Who better to help plan for the battle than teens themselves” one report on the efforts would say. At a week long event, one attendee came up with the slogan “Pages for All Ages.”

The company ran television ads promoting pagers as a tool for child parent communication and in 1996, partnered with PepsiCo to offer 500,000 pagers to youths at a low price.

The promotion angered lawmakers – like State Senator Ronald Rice – who’d been a leading player in the war on beepers. Around this time moves to over-turn bans emerged, by other lawmakers calling them outdated – partly fuelled by the suspension of a 5-year-old alluded to earlier. New Jersey would amend the law in 1996, but not repeal it.

Three decades later, the New Jersey law was still on the books. The original sponsor of the bill – Senator Ronald Rice – sought to repeal it in 2017 saying “Fast forward almost three decades and it’s no longer an issue.”

There is little evidence it ever was an issue, in-fact – the subsequent rise of cellphones in schools coincided with a massive reduction in youth drug taking, while causation has been suggested by some – it certainly serves as stronger evidence against the idea of mobile messaging increasing drug access.

Senator Ronald Rice passed away in 2023 – the New Jersey Pager ban still in place – months later The Washington Post editorial board would call on schools to ban cellphones entirely – part of a new moral panic about kids and digital devices, many of whose parents were once prohibited from bringing pagers to school.

Nod to Ernie Smith of Tedium.co the only other person to cover the beeper bans, a piece that helped highlight a few fun examples included in this piece.

This article was published at Pessimists Archive on 4/10/2024.