In a capitalist society, government is limited to defending the rights of individuals—the freedom of individuals to act without coercive interference from others. But that is not what occurs when cronyism is practiced.
Cronyism is the practice of dispensing political favors to some at the expense of others. With altruism and collectivism serving as the moral/political justification, cronyism forces some individuals to act contrary to their own judgment. Those with the proper political connections are the beneficiaries. Those who provide electoral support through donations or votes are rewarded with favorable legislation.
Fascism is a form of collectivism, as are socialism and communism. In each of these systems, the individual is forced to subvert his personal interests to those of the group. Unlike socialism and communism, under fascism property is ostensibly owned by private individuals. However, like socialism and communism, under fascism the use of property is controlled by the government. And government control of property is precisely what occurs under cronyism.
As examples, consider the myriad regulations that control the use of property in America today. In most communities, you cannot erect a building on your land without receiving the permission of zoning boards and building inspectors. In most cities, you can’t use your vehicle as a taxi without the permission of regulators. You can’t operate a school, open a restaurant, or manufacture food products without a stamp of approval from at least one government agency.
Every economic regulation and intervention forces individuals to put aside their own judgment and act as politicians and bureaucrats demand. They cannot use their property as they deem best, but only as government officials declare appropriate. They cannot use their property by right, but only with permission. They cannot pursue their own self-interest but must act in the “public interest.”
When government officials have such vast powers over individuals and businesses, it is inevitable that individuals will seek special favors. They seek to influence the decisions of the bureaucrats and politicians who have the power to ruin them or bestow great favors upon them. In exchange for these favors, politicians want something in return—campaign contributions, endorsements, votes, and other forms of support.
Altruism is an attempt to morally justify collectivism and the public interest. Cronyism is the inevitable result.