Uploaded May 2026 | Updated September 2026, 2 weeks ago
In this Institute of Economic Affairs interview, IEA Editorial Director Kristian Niemietz speaks with Dr. Rainer Zitelmann, historian, sociologist, and author of New Space Capitalism, about the rise of private space industry and what it reveals about markets, incentives, and the limits of state-led enterprise. They examine how space exploration has shifted from a government monopoly to a competitive private sector, and what the economics of that transition look like.
The conversation covers the record of NASA's government-run programmes, particularly the Space Shuttle, whose per-flight costs vastly exceeded forecasts and which ultimately left the United States reliant on Russian rockets to reach the International Space Station. They discuss how SpaceX's reusable rockets reduced launch costs by 95%, why the old Cost Plus contracting model incentivised waste rather than efficiency, and how Obama's political indifference to space turned out to be its unlikely enabler. Zitelmann also takes aim at Mariana Mazzucato's moonshot framing, arguing she cherry-picks a decade of success and ignores fifty years of failure.
The interview then turns to the frontier questions: asteroid mining, property rights in space, the Outer Space Treaty's legal grey areas, and whether private ownership on Mars is not just desirable but necessary for survival. Zitelmann argues that socialism failed everywhere on Earth and would fail even faster in the hostile conditions of outer space, and sets out his proposal for how space property rights could be structured on the model of the American West.
đź“– Buy New Space Capitalism by Dr. Rainer Zitelmann: amazon.co.uk/New-Space-Capitalism-Entrepreneurial-Stars-ebook/dp/B0GN9Q8C7H
đź“„ Read Dr. Zitelmann's IEA paper, Exploring the Space Economy: iea.org.uk/publications/exploring-the-space-economy
The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.
In this Institute of Economic Affairs interview, IEA Editorial Director Kristian Niemietz speaks with Dr. Rainer Zitelmann, historian, sociologist, and author of New Space Capitalism, about the rise of private space industry and what it reveals about markets, incentives, and the limits of state-led enterprise. They examine how space exploration has shifted from a government monopoly to a competitive private sector, and what the economics of that transition look like.
The conversation covers the record of NASA's government-run programmes, particularly the Space Shuttle, whose per-flight costs vastly exceeded forecasts and which ultimately left the United States reliant on Russian rockets to reach the International Space Station. They discuss how SpaceX's reusable rockets reduced launch costs by 95%, why the old Cost Plus contracting model incentivised waste rather than efficiency, and how Obama's political indifference to space turned out to be its unlikely enabler. Zitelmann also takes aim at Mariana Mazzucato's moonshot framing, arguing she cherry-picks a decade of success and ignores fifty years of failure.
The interview then turns to the frontier questions: asteroid mining, property rights in space, the Outer Space Treaty's legal grey areas, and whether private ownership on Mars is not just desirable but necessary for survival. Zitelmann argues that socialism failed everywhere on Earth and would fail even faster in the hostile conditions of outer space, and sets out his proposal for how space property rights could be structured on the model of the American West.
đź“– Buy New Space Capitalism by Dr. Rainer Zitelmann: amazon.co.uk/New-Space-Capitalism-Entrepreneurial-Stars-ebook/dp/B0GN9Q8C7H
đź“„ Read Dr. Zitelmann's IEA paper, Exploring the Space Economy: iea.org.uk/publications/exploring-the-space-economy
The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.
