As NASA developed and flew early Shuttle missions, it had to fend off private competitors. In the late 1970s and early 1980s federal agencies were forbidden to contract with the infant private launch industry to put government payloads in orbit. In the early 1980s, as the Shuttle was seen as a costly white elephant, NASA needed a mission to justify the Shuttle's continued existence. Aside from any commercial or scientific benefits, an orbiting space station seemed to serve this purpose. Again, large contractors led the lobbying for this project.
Most space scientists see the station as wasteful.
Some businessmen do realize that corporate welfare in the end only harms them and the economy. President and CEO of Cypress Semiconductor Corp. testified before the House Committee on Science, Space and Technology, Subcommittee on Technology, Environment and Aviation on government subsidies for high-tech innovations. But I am here to say that such subsidies will hurt my company and our industry. I do not want handouts. The men and women of our company do not want handouts.