Distinguishing good subsidies from bad means paying close attention to particular programs, understanding what works and what does not. Robert Reich Neologisms are rather like children. Once they move out into the world you can no longer protect or control them. I still think it's a useful term, though. That's where regulations and subsidies come in.
Regulations can reduce bads.
Subsidies can increase goods. The challenge is to design the regulations and subsidies just right. At the very least, apply some logic. But there's no similar test for the reverse side of the same coin. Government subsidies and tax breaks to business have mushroomed in recent years, without any showing that the benefits they confer on the public exceed their costs.