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Space Travel For the 1%: Virgin Galactic's $250,000 Tickets Haunt New Mexico Town
The Real Dr John writes: The Guardian has an article about Virgin Galactic's proposed launch site, Spaceport America, which broke ground in southern New Mexico's high desert in 2009 with almost a quarter of a billion dollars from taxpayers, $76m of which came from the two local counties. Truth or Consequences, population 6,000 and home to the Spaceport America Visitor Center, is one of the poorest places in the state. The increased taxes, adopted across impoverished Sierra County, contributed to about $5m as of 2014. Since 2009, state school budgets have been cut and an estimated $26m in necessary repairs to the town's water system has been put on hold. There's no more money to pay for it. The average annual income of residents is just $15,000 per year, one third of residents live below the poverty line, and just 20% over the age of 25 have obtained a bachelor's degree.
If it worked as intended it would have been a good deal.
$65m in "stolen" money as you call it (taxes).
$250k tickets * say 10,000 = $2,500,000,000 into the net economy. Let's say that 15% of that is operations that's still $375m back into the economy in the form of wages. You aren't going to find a 576% investment opportunity very often.
Furthermore those people would probably want to eat somewhere while in town and maybe even visit a shop or two which would further boost the local economy.
It was a sound plan, and I'm sure virgin would very much like to be making a ton of money as well but the part that failed was the fact that they didn't have more protections for the county in the event that say.. a rocket exploded and the business plan was put on hold for 10 years.