The Space Shuttle was a weak attempt at reusability which was probably designed to fail from the beginning. The government, or more specifically its aerospace contractors, had no incentive to take it seriously. There is way more money in producing one-time-use rockets over and over again and this is why the government continues to do exactly that even now when reusable rockets are available.
Reusable rockets is something that took a private hand to do. I don't think government ever had the incentive.
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