In an economically free society, the role of business is to create value for society by producing products and services that their customers consider beneficial. If they do this while using resources wisely, they make a profit, and societal wellbeing is enhanced.
Cronyism diverts resources away from the wants and needs of consumers and toward political purposes. Cronyism occurs when an individual or organization colludes with government officials to create unfair legislation and/or regulations which give them forced benefits they could not have otherwise obtained voluntarily. Those benefits come at the expense of consumers, taxpayers, and everyone working hard to compete in the marketplace.
Cronyism harms society and threatens economic freedom, which is the key to greater opportunity and an improved quality of life. To learn more about economic freedom, visit this site.
To understand why cronyism is such a threat, read this article.
More Resources on Cronyism
To learn about the difference between cronyism, also known as crony capitalism, and genuine capitalism, take a look at page 9 of the new book The Morality Of Capitalism.
Read this article answering the question Exactly What Is Crony Capitalism, Anyway?
Or watch a video of economist Russ Roberts testify before Congress about cronyism: