The US government realized this in the late 90s-early 2000s and started pushing NASA to go outside to utilize private industry in more a competitive way (instead of giving contracts to the same tiny group of gov contractors). This started initially under GWB and later Obama expanded it, which helped open the door to companies like SpaceX and X PRIZE type competitions.
> The first three launches of the rocket, between 2006 and 2008, all resulted in failures, which almost ended the company. Financing for Tesla Motors had failed, as well, and consequently Tesla, SolarCity, and Musk personally were all nearly bankrupt at the same time.
> The financial situation started to turn around with the first successful launch achieved on the fourth attempt on September 28, 2008. Musk split his remaining $30 million between SpaceX and Tesla, and NASA awarded SpaceX a $1.6 billion Commercial Resupply Services (CRS) contract in December, thus financially saving the company.
Yeah, bad gov't (NASA). Get out of the way for private industry. Or, wait, help us when we are desperate and nearly bankrupt. Which one? The correct answer is "both, in harmony".
