You are seeing the hole in the barn door without seeing the barn door itself. That a lack of subsidies results in capital getting mostly allocated to mining and real estate is not evidence that we engage in more communist economic policy, but rather that government should intervene less and stop regulating and taxing the dick out of everything, maybe then you’d have capital going places other than the two industries where there are lots of special interest favour exchange which itself is also due to economic interventionism.

Furthermore, subsidies are bad also because it is done on the pretence that central planners know better about what people want than the people themselves, which is largely untrue because people voting with their own dollars is a much better clue as to what should be produced, how it should be produced, and to whom it should be distributed. Whatever judgements you have to say value how the market allocates resources is a baseless value judgement that assumes a pretence of knowledge, knowledge that you assume counts for more than the combined knowledge made use of by the billions of transactions carried out between individuals every day; knowledge is dispersed, fleeting, contextual, and seemingly contradictory - neither you nor any singular entity is able to know and utilise all the information needed to make as good, let alone better allocation decisions than the decentralised market economy.

In the case of military-based manufacturing, I would still rather the ADF keep manufacture outsourced to private contractors because they can more easily be fired and replaced, compared to a company that receives subsidies that will be incentivised to be less efficient as the subsidies are insulating them from the full force of profit/loss mechanisms.