 Infinite-dimensional simple module for the two-dimensional affine Lie algebra

The solvable Lie algebra $\mathbb{C}x\oplus \mathbb{C}y$, with $[x,y]=y$, has an infinite-dimensional Irreducible Lie algebra representation on $\mathbb{C}[t]$: $xf(t)=tf(t)$ and $yf(t)=f(t-1)$. Indeed $[x,y]f=yf$. An invariant subspace is an ideal $p(t)\mathbb{C}[t]$ because it is invariant under multiplication by $t$. Shift invariance gives $p(t)\mid p(t-1)$, hence $p(t-1)=p(t)$ and $p$ is constant. This shows why the Lie theorem needs finite-dimensional representations, even when the algebra itself is finite-dimensional.