Actually Detroit is a perfect example to bolster my original point.
The auto industry had such deep connections to Capitol Hill that they never had to worry about much competition. German and Japanese automobiles were stymied and lobbied and mudslung at every opportunity. The whole thing was propped up artificially by red tape and legislature. Ultimately, it wasn't sustainable. Detroit was so far behind the times that everything came crashing down around them, and we're left with the wasteland that it is today.
Had the congress critters removed themselves from the equation, and let Detroit suffer earlier, the suffering could have been significantly lower. American cars would have started to lose ground sooner, hopefully before they were completely lost causes, and just maybe caused manufacturers to get with the times and keep themselves competitive. At least they would've had a chance. Yeah, it would still have been painful. But at least the city would've stood a chance.
Now we're starting the same song and dance with Space-X. If Congress puts up the same fight for Boeing, Lockheed and Northrop that they did for GM, Ford and Chrysler, expect similar results (cough*F-35*cough) Space-X will eventually get tired of the BS and pack up. Musk is from South Africa, and he's half Canadian and half Brit... so I think he can find somewhere else to setup shop if the US government gives him enough crap. At which point, he can just sell the rockets to NASA if they're still interested, siphoning American dollars into whichever country he's working from. Oh, and this is the guy trying to revolutionize the auto industry at the same time, AND build that giga-factory which might help create some jobs... but na, lets keep the short sighted approach and make sure the middle managers in these 3 peoples' towns stay well employed, and keep their property values high.