U.S. President Barack Obama’s decision to cancel NASA’s Ares 1 and Ares 5 rocket development programs will have repercussions for the U.S. propulsion industrial base that likely will be felt most prominently by the Defense Department, initially in the form of higher prices for satellite launchers and strategic-class missiles. In the absence of mitigating industrial policy measures, the move could over the long haul compromise national skill sets in both solid- and liquid-fueled propulsion systems.

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