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0 pointsonlyrealcuzzo1y ago0 comments

> 2. Essentially a cost plus (or cost even) program.

This is really the only problem.

Because the government was the only buyer - no one in their right mind would supply unless a ridiculously cushy contract is in place.

You're going to massively overpay if you're the only buyer in a new industry that requires insane CapEx and is high risk.

0 comments

bumby1y ago

That’s part of the plan though. With high risk nascent industries, the govt is often the only customer who can bear that risk. It was the same dynamic that ushered in aerospace; it was mainly just a hobby industry until the Army offered a lucrative contract.

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0 pointsonlyrealcuzzo1y ago0 comments

> 2. Essentially a cost plus (or cost even) program.

This is really the only problem.

Because the government was the only buyer - no one in their right mind would supply unless a ridiculously cushy contract is in place.

You're going to massively overpay if you're the only buyer in a new industry that requires insane CapEx and is high risk.

0 comments

bumby1y ago

j / k navigate · click thread line to collapse