Comment Re:Invisible hand of the free market (Score 5, Insightful) 435
It is a lesson we continually fail to learn: Industries built on government subsidy suffer when those subsidies begin to go away, even if the product itself is sound.
The lesson "we" continually fail to learn is that not everything is a vindication of one's favorite economic-religious theory. Every time there is an increase in demand for something, investments pour into the relevant industries far in excess of that demand, and most of those ventures fail before a handful of them succeed and become the dominant players. There's nothing magical about either the market or subsidies. Subsidies are just market forces, like weather influencing crop prices or international trade policy influencing imports and exports. The theoretical free market in which prices are not "manipulated" does not and cannot exist in the real world because it is ultimately based on human beings, and humans manipulate everything they can. It doesn't matter whether the influx of cash comes from subsidies or sales: companies benefit while the cash flows in, and they suffer when it stops flowing. Money is money.