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The subsidies have never saved me from failing before, they only make me fail slower (if that makes sense). It might just be something I'm experiencing though.
Yeah, I've heard of people having a different experience (the economy just never picking up enough to succeed) -- I think both are indicative of a borked simulation.
For me, I can even be completely in the black, with 100k+ income, and I'll still be getting hundreds of grand in subsidies. Ruins any challenge.
I have a pretty large city, but something is wrong with my tax calculations? I have one industry pumping out 150x the taxes of everything else combine. Just a blanket of $5m from lumber an in-game hour, next best is Metals at $45k a day.
Doesn't surprise me, if you read their forums there are a ton of folks reporting issues either being outright ignored or told that the game-breaking bug they found is "as designed".