I agree with you in regards to the short-term impacts of subsidies, but not necessarily in regards when the long-term view is taken into account. There are many examples of subsidy programs helping to create industries that eventually became profitable after a period of time. The solar industry is a good current example that support both your points and my own. Japan, Germany, Spain and Italy all created substantial solar subsidy programs which they eventually curtailed because they were costly. However, by creating these programs they enabled and encouraged companies and Universities to invest in all aspects of the R&D, development and commercialization of solar panels. The result is that the installation of solar panels is now competitive with fossil fuels and utility rates without subsidies in many areas and becoming increasingly so. The long-term benefit to the world will far outweigh the initial costs of subsidies to kick-start this industry.
It does not always work out, but it sometimes does.
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