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It's not the government's job to subsidize people's bad business models.

It shouldn't be, but it is to a huge degree. Oil companies, corn production, milk subsidies, road network growth, etc. are all bad business subsidies in the US for example.
Governments used to fund basic research all the time for decades to provide a common good. Governments fund education, universities, road infrastructure and other foundational stuff so that companies can work.

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