Promoters of the Ansari X Prize understand that part of the reason is that there isn't a private group offering such a service. Maybe there will be soon.
Let me give you another reason. The government could have taken passengers for a long time, but they set the price too high. NASA, by refusing non-Senatorial passengers essentially set the price at an infinite number of dollars. The Russians were a little more forthcoming - $20 million plus a lot of headaches.
Wanna know more? I'm an economist, and I have a longer post about this entitled "Governments Don't Price Well" at my blog, voluntaryXchange.
hey, hey, don't forget Mr. Shuttleworth.. :)
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