Government is actually incredibly bad at funding risky research because in the end it is accountable and needs to show some level of result. Even the moonshot had concrete goals and mileposts that needed to be met or else the whole thing was called off.
Meanwhile, there's this crazy guy who discovered something incredibly risky that many of his peers didn't believe was true and did it outside of the government:
> https://en.wikipedia.org/wiki/Peter_D._Mitchell*
I never said "all important discoveries come from the government". The Polio vaccine and penicillin and the theory of evolution and the last Nobel Prize for Graphene and a bunch of other things came out of non-government funded research.
That has no bearing on the fact that most of the biggest advances cannot be had without significant long term investment without guaranteed outcomes that most private investors are extremely unlikely to fund. I mean, have you seen the sort of research proposals professors write that actually get grants from the NSF?
Beyond things like DARPA and NSF and the like, think of things like the various National Labs. Nobody's winning Nobel Prizes every year at these labs, but year after year they do work that pushes the boundaries of human knowledge to enable future discoveries.
Yes, I have seen some of the shit that professors write for the NSF, and I'd rather they not be using taxpayer money to fund their intellectual masturbations, or hiking trips to the rainforest, or scuba diving expeditions (among other travesties).
The issue with panels allocating taxpayer money, is that their interest is still in government. That is, they will fund research in which government has an interest or is neutral, and consequently, any research which is potentially harmful to government is scrapped (even if it would be beneficial to the taxpayer.)
One might not think there's a distinction between what benefits the government and what benefits the taxpayer if one believes in the fairy tale that governments exist to benefit the people.
Really? Am I really reading this?
Were the panels doing their duty when they awarded Felisa Wolfe-Simon her grant? Was the panel doing their duty when Leo Paquette, sitting on one, kaiboshed a young researcher's grant and stole the idea for himself? How about the panel that awarded a grant to Geoffrey Chang, in spite of having six retractions due to careless (and quite frankly stupid) crystallography? Is he really "someone who deserves it the most"? This is just the tip of the iceberg. I could list about 20 more off the top of my head.
I would go so far as to say as a rule they do not allocate scarce funds to whomever deserves them the most.
And why is that a bad thing? If they have an idea that they think they can make a lot of money by patenting, they're going to do that research anyway with non-government funding (e.g., start a company and raise venture capital). So why waste taxpayer money funding it? Better for the government to fund something like basic scientific research that's not patentable (and on which applied research depends).