The free market works fine - the problem is at that scale, we can only afford a few key players, they're strategic so they end up having subsidies other considerations.
Put differently: if the population of the earth were 50 Billion people instead of 8 Billion - then we'd have markets with enough competition to allow free market dynamics.
In that context, then we'd have 'Space companies' being subsidized.
We'd have a hotel on the Moon and we'd easily be on Mars already.
Those aircraft are on the 'edge of our resource capabilities' - huge companies at the top of the pyramid.
If we had a massively bigger economic pyramid, they would be more like car companies.