Valuetainment - October 03, 2022


Elon Musk Exposing NASA - Why Entrepreneurs Do It Better, Cheaper & Faster

Hosted by
Patrick Bet-David
Mentioned
SpaceX Elon Musk Patrick
10 Reasons To Start A Business During A Recession How The Mighty Fall - 5 Stages Before A Company Goes Bankrupt

Episode Stats


Length

4 minutes

Words per minute

213.74

Word count

1,068

Sentence count

78


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

SpaceX vs NASA: Who's cheaper? SpaceX or NASA? In this video, we compare the cost of SpaceX vs NASA to fly a rocket into space and see who can do it cheaper, faster, better, and more efficient.

Transcript

Transcript generated with Whisper (turbo).
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.120 Let's just say you're an investor.
00:00:01.120 You got a billion dollars.
00:00:02.120 You want to fly a rocket into space and you're wondering who to give the money to that can
00:00:05.960 do it cheaper, faster, better, more efficient.
00:00:08.760 You got Elon Musk, SpaceX, and you got NASA, the US government taxes.
00:00:13.880 Who would you rather give your billion dollars to wait till you see some of these statistics
00:00:17.920 I'm going to give you on who did it cheaper, better, faster, with way less money on how
00:00:22.720 this goes.
00:00:23.720 And by the way, if you get value out of this video, give it a thumbs up and subscribe to
00:00:25.640 the channel.
00:00:26.640 And stay to the end because I've got another video I want you to watch.
00:00:28.640 Now, SpaceX versus NASA, who wins?
00:00:31.720 Let me give you some data.
00:00:33.460 When it comes down to SpaceX, when you hear the word Falcon, that's SpaceX, so Falcon 1,
00:00:37.880 Falcon 9, that's SpaceX.
00:00:39.800 They were looking at how much it would cost to fly a rocket into space.
00:00:43.320 Well if you gave that money to SpaceX, it would only take 300 million dollars to fly Falcon
00:00:48.880 9 into space.
00:00:50.880 Now, NASA was asked how much would it cost you if we wanted to do the same thing to fly Falcon
00:00:57.560 into space.
00:00:58.560 NASA said?
00:00:59.560 And estimated.
00:01:00.560 You ready for this number?
00:01:01.900 Not 300, because that's what Elon says with Falcon 9.
00:01:04.920 Not a half a billion, not a billion.
00:01:07.300 They said anywhere between 1.7 billion to 4 billion dollars.
00:01:12.760 Wait, how can Elon do it for 300 and you need 1.7 to 4 billion to get it done?
00:01:19.480 It's kind of like saying the following.
00:01:21.180 You go out there and hire somebody and say, listen guys, I need you to move some of this
00:01:23.800 stuff here from this building to my house because I'm moving.
00:01:25.800 I'm moving from one apartment to another apartment, right?
00:01:28.140 You go hire some local employees running a small business that's a moving business and say,
00:01:33.800 how much will it take you to move this load?
00:01:34.800 And they tell you, ah, we'll give you an estimate.
00:01:36.800 How much?
00:01:37.800 It'll cost us about $5,000 to move all this five bedroom, this big house, $5,000.
00:01:41.800 $5,000?
00:01:42.800 Yes.
00:01:43.800 Then you go to another place that's run by the government to give you the exact comparison
00:01:47.800 so you know how this thing works.
00:01:48.800 You ask them, same amount of people, everything's the same, but they tell you, yeah, it'll take
00:01:53.800 us around $25,000 to maybe $60,000.
00:01:57.800 What would you say?
00:01:58.800 That's the numbers.
00:02:00.800 $5,000 versus $25,000 to $60,000.
00:02:03.800 $300 million with Elon Musk, $1.7 to $4 billion.
00:02:06.800 Now I said, let's go a little bit deeper.
00:02:07.800 So the guys should give me some data on what it would look like and how accurate the government
00:02:12.800 is their budget versus how accurate NASA does versus how accurate SpaceX is.
00:02:17.800 So let's look at this chart together and let's look at some case studies.
00:02:21.800 And we can look at multiple cases.
00:02:23.800 When you look at NASA, you see a number of cases at 118.
00:02:27.800 When you look at SpaceX, you see a number of cases at 16, okay?
00:02:31.800 When you look at average cost overrun, meaning if something costs $100 and that's what we're
00:02:38.800 expecting the budget to be, if it's 10%, that means it ends up being dumped for $110, right?
00:02:43.800 You ready for NASA?
00:02:45.800 It's 90%, meaning if they project a budget of $1.7 billion, it's probably going to end
00:02:51.800 up being $3.3 billion, give or take.
00:02:55.800 So whatever number they give you, pretty much double it.
00:02:58.800 Now watch SpaceX.
00:02:59.800 You know what SpaceX is?
00:03:00.800 If they take $300 million, it's going to be only 1.1% higher, which is $303 million.
00:03:06.800 Can you imagine the difference?
00:03:07.800 Imagine somebody comes, how much is it going to take to build this house?
00:03:10.800 I think we can build this house for $500,000.
00:03:12.800 Okay.
00:03:13.800 Well, you guys were wrong.
00:03:14.800 Yeah, we're so sorry.
00:03:15.800 Instead of $500,000, it's going to cost us $505,000 to build it.
00:03:18.800 Versus, you go to this company called the Government Construction Company, and they tell you,
00:03:24.800 yeah, instead of $500,000, you know, Patrick, we're so sorry.
00:03:27.800 After looking at it, it ended up costing us $950,000.
00:03:29.800 But you said a half a million.
00:03:30.800 I know, but it's $950,000.
00:03:32.800 Do you see why people feel uncomfortable when the money's given to taxes to see what they do with it?
00:03:37.800 Now watch this.
00:03:38.800 Wait for this last one here.
00:03:39.800 The last one is frequency of projects that end up costing, meaning that you have to pay more for.
00:03:45.800 Nine out of ten times with NASA, the projects end up costing the overall, which is you're going to pay the 90%.
00:03:51.800 And with SpaceX, it's only five out of ten.
00:03:54.800 So again, going back to my question, if you had a billion dollars to choose between the two, who would you give your money to?
00:03:59.800 This is where the conversation becomes.
00:04:01.800 The more we raise taxes, and we tax people to give it to the government to choose to do something with that money,
00:04:07.800 and then you just compare a SpaceX versus a NASA, the more you give the money to free market,
00:04:12.800 innovators and disruptors will nine out of ten times do a better job at it than somebody else that you're paying the taxes to.
00:04:19.800 Of course, we have to have public school.
00:04:21.800 Of course, we have to have certain things that we've got to pay for.
00:04:23.800 But some of these types of things, when an Elon Musk goes out there and exposes a NASA that's been around for God knows how many years,
00:04:29.800 and SpaceX has only been around for a few years, it gets you to start thinking, maybe entrepreneurs do it better.
00:04:35.800 If you agree with me, give it a thumbs up and subscribe to this channel.
00:04:39.800 I got a video I want you to watch that I shot maybe five years ago.
00:04:42.800 Why I love capitalism.
00:04:44.800 Whether you agree with me or not, I can't wait to watch that and tell me whether you agree with me or not
00:04:49.800 on why this immigrant who came here from Iran to Germany at a refugee camp to US, why I love capitalism.
00:04:55.800 I want to hear your thoughts once you watch that video.
00:04:57.800 Take care everybody. Bye bye, bye bye, bye bye.