Well, let’s take Solyndra, for example. Any competent physicist could have told you there was NO WAY solar panels that were truly economical could be produced 8 years ago. Nevertheless, this company was created with no other intention than “farming” Federal Grants. Last I heard that cost the economy half a billion. How much improvement in the economy has to take place to recover that loss? The time periods don’t correspond but the analogy is still correct, “How many secretaries typing documents at 80 wpm do we have to lay off to realize the benefit of word processing?”. And how many years will we have to take to accrue that benefit? How many other companies have to accrue small, incremental benefits of innovation over what period of time to fill the crater left by one Solyndra.
There are large numbers of business failures every year, thousands of them large and small. Most are privately financed and some received government grants or loan guarantees, and some involved corruption. Those failures cost the economy billions per year, but they hardly negate the benefit of the new ventures that succeed, and those that have been going concerns for significant periods of time.
I think you’re trying to attach far too much significance to a few high profile business failures.