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With all the problems making headlines these days -- failing banks, failing automakers, and flailing legislators hard at work destroying America's health-care system (I jest, of course), you might think the last thing we need is more spending, and more arguments.

NASA begs to differ.

To the moon, Congress!
Congress spent much of this week debating the fate of President Bush's promise to return America to the moon. The so-called "Augustine Commission," headed by former Lockheed Martin (NYSE: LMT) CEO Norman Augustine, has testified that if NASA gets $3 billion a year in added funding, it can put men back on the moon by 2020. Problem is, Augustine thinks that's $3 billion too much.

Arguing that there are "the resources available" to fund astronauts exploring space remotely or actually traveling there physically -- but not both -- Augustine calls the moon program "fatally flawed." Augustine’s committee essentially recommends writing off the $8 billion already spent as a bad investment. Not that the committee doesn’t endorse human space flight; the argument is that there’s just no money for it.

A modest proposal
NASA is bucking, and points out that its funding has been cut 20% over the past 15 years. If Congress were to commit the necessary funds for a continued push ($100 billion), NASA is sure we could make the trip. And it's possible the Augustine Commission will agree. At last report, it appeared willing to compromise by not shutting down the project completely, but slimming it down considerably. For example, rather than building two rockets, one to carry astronauts and another to carry their equipment back to the Moon separately, we could use a single Ares V rocket to make the trip -- and load everything aboard it, Jed Clampett-style.

Who wins if we go?
Space exploration is an elite club. Few companies possess the know-how to help out, and I suspect you'll recognize the bigger names:

  • Boeing (NYSE: BA) and Lockheed -- twin members of the "United Space Alliance" -- play perhaps the most high-profile roles in the program. Lockheed will construct the Orion spacecraft that will make the trip, and Boeing has been selected to produce the Ares I rocket’s upper stage and avionics.
  • Orbital Sciences (NYSE: ORB) and Alliant TechSystems (NYSE: ATK) are working on the launch abort system.
  • United Technologies (NYSE: UTX) is building the J-2X engines that will power the upper stages of the Ares I and V rockets.

More broadly though, the more resources the government commits to the space effort, the more opportunities will arise for smaller firms to participate -- companies like privately held Space Exploration (presided over by the man who brought PayPal to eBay, Elon Musk) or Blue Origin (Amazon.com founder Jeff Bezos's own private garage workshop).

Whether these companies prosper, though -- and whether they ever become public so that we can profit alongside them -- may hinge on the Obama administration's decision to return to the moon, or stay home and watch Star Trek reruns instead. Or further, if NASA doesn’t decide to go to the moon, whether Congress takes the Augustine Commission’s advice to help subsidize private space-flight providers in hopes that will ultimately be the cheaper route for exploration.

Stay tuned for its decision, sometime after the Augustine Commission releases its final report later this month.

And tell us what you think about the issue in the comments section below. Can we afford to pay for a new moon landing? Can we afford not to? We report -- you decide.

Read more on the space race (redux) in:

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Fool contributor Rich Smith owns shares of Boeing. Orbital Sciences is a Motley Fool Rule Breakers recommendation. Amazon.com and eBay are Motley Fool Stock Advisor selections. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 18, 2009, at 4:33 PM, jimmie58 wrote:

    Writer left out the biggest story about Alliant TechSystems (ATK) beside the booster escape rocket. Go to their website www.atk.com. Opening page shows the Ares1 solid fuel booster. Click on the picture. ATK makes this thing which will actually launch the manned craft to the moon. They are also the largest munitions maker in the US as well. Very interesting website. Unbelieveable what this company makes for national defense, aerospace etc.

  • Report this Comment On September 18, 2009, at 7:41 PM, GrumpyTaxpayer wrote:

    Ok folks, I know that human space flight is important and it is cool to see. But come on, for the past 50+ years human space flight has NOT generated one on-orbit business that makes money without my tax dollars funding it. I know, I know, we get so many “great spin-off technologies”; “it’s our destiny”, blah, blah, blah. Oh by the way, we need another $3 billion a year to on top of our budget so we can “go to the moon!” OH BOY!

    Ok NASA, Ok Congress, OK White House; show me a plan that will that will lead to on-orbit, human tended, businesses or industries that make something called “PROFIT !” (Profit = running and sustaining the business without my tax dollars). Once I see that, then we can talk about using some of my tax dollars for humans exploring the moon or whatever.

  • Report this Comment On September 18, 2009, at 9:17 PM, jimpiccard wrote:

    Two problems here: Rich Smith's ignorance of both what the Augustine committee has really said and the reasons behind it (hint: they weren't about focusing on going back to the moon); and Grumpy's somewhat childish rant have degraded an important conversation. BUT, I'll ignore the rant and address his one honest question:

    <i>show me a plan that will that will lead to on-orbit, human tended, businesses or industries that make something called “PROFIT !”</i>

    First off: you have a point (one point only, though; because there are a lot more reasons for humanity expanding its economy and operations into space than just short-term profits; defending Earth from real external threats being just one). One of the tragedies of the last several decades is that the U.S. and other nations have spent - civil and military space, combined - a couple of hundred billion $$, and yet only a couple of true, economically-successful industries have sprung up from it. Telecommunications systems being one - to the tune of tens of billions a year; enabling a GPS-based economy on Earth via government satellites, which is expanding wildly. And I would include government-owned and operated weather satellites, which are economy-and lives-enabling for us on Earth.

    However, we could have - should have - done a lot more in NASA. Even with the same amounts of money we could have accomplished much more that is economically lasting; our problem was how we went about it. We could have gone about getting many of our objectives in space in a way that would have used the government funds to leveraged tthe creation of new sustainable space industries which would have continued to exist even after each government program ended. But, we didn't; no one forced us to, the bureaucracies kept on with what they knew best, and as a result, American space competitiveness has shrunk dramatically - and few other new industries have been created, after all that money.

    Even pure scientific exploration can be done in a way that leverages the monies spent such as to leave an enhanced, self-generating commercial industry in its wake.

    There is a group inside NASA now trying to change that; we're proposing a commercial space development initiative. (Note, no capital letters; it's not an official NASA initiative - yet). In short, we want to change the way NASA operates so that creating new industries and new capabilities that will last is required to be part and parcel of what we do as we work our own space missions. We want to expand the human economy into space. And we prefer it to be an American-led economy, increasing overall American competitiveness, and having American companies (plural) be the competitive leaders in future space services that other countries need to buy as they expand their own space programs.

    This new Administration has been a breath of fresh air - so far - in terms of openness to new ideas for doing science, technology, and space in a way that meets larger national, and international, needs, not just what the standing bureaucracies want to do. It seems that the new leaders of NASA are that way, too (again, so far). So those of us working the commercial space development initiative are hopeful, and are proceeding until apprehended.

    Over the decades, NASA's main problem has <i><b>not</i></b> been money; it's been attitude. Some of us are working hard to change that, now that we seem to have receptive new leaders. Wish us luck.

    Dave Huntsman

  • Report this Comment On September 18, 2009, at 10:30 PM, GrumpyTaxpayer wrote:

    Mr. Huntsman,

    Ok, maybe the rant was childish but you are the first person I have read on many, many news articles and blogs that give me hope that my future tax dollars will actually be an investment in a profitable industry someday. I’m willing to wait a few or even years for the businesses to mature. But you have to understand the average taxpayer’ frustration (from you reply, I think you do) with NASA simply wanting more money for the moon exploration. Thank you for showing me at least one person is working toward that end. I not only wish you luck, you have my support.

  • Report this Comment On September 19, 2009, at 1:04 AM, K83AQ wrote:

    China is already planning on manned trips to the moon. They have LOTS of money too.

    The U.S. Could pay the Chinese for access to the moon. This would be far more economical.

  • Report this Comment On September 20, 2009, at 9:31 AM, deadlysaber wrote:

    Space travel is a tricky subject, although technology on Earth is developing at tremendous speeds the same cannot really be said for space travel. If we cast our minds back over five decades ago you will remember that the mission to the moon captured every persons imagination. But not much has really been done since then.

    NASA have for the last few years been developing a shuttle called Ares for the new constellation program. The basic purpose of the program is to actually gain much more experience in humans and crafts spending time away from Earth and developing technologies to go further into outer space.

    Similar to the Apollo program the spacecraft will first fly a low Earth orbit, NASA has been working to retire its current shuttle fleet and begin flying the Ares program by 2015. It is rumored that a manned mission to Mars will not be until after 2030, but before that astronauts would instead visit a close asteroid.

    ------------------------

    Money without intelligence is like a car without a road.

    http://www.intelligentinvestingtips.com

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