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by symfoniq 1183 days ago
Incentives, better than anything else, explain how the world actually works.
1 comments

1000%. It's all about creating and aligning incentives.

Government gets this sometimes - subsidy for the things it cares about. Food, energy, defense. Those are all pretty solid, even if some of the vendors aren't the greatest. The sheer scale of the investment means we'll be okay. Too big to fail.

Often these big budget items get bloated by congressional sway pulling work into disparate districts as job programs. Or locked away in under-performing incumbents (Lockheed / Boeing vs SpaceX), but if we expose the system to more evolutionary pressure and competition, it might thrive.

SpaceX is an example of the RFP process turned on its head. Designing ahead of time for an understood public demand, in a bloated industry, in a way that serves both the public and private sector. A solution where the private sector needs serve to justify the cutting of costs and hone the product into a shape that is undeniably cost attractive and competitive.

The things the government subsidizes that don't compete or aren't forced to stay lean - education, transportation, infrastructure, healthcare - tend to bloat up and soak up all the money they can as well as underperform on all of our expectations.

Maybe the solution is to stop paying the current service providers and hire new ones that service private industry. They'll already be in a shape to optimize for costs and fend with competition.