Since my detailed posts about why crony capitalism is capitalism in practice confused people, I’ll simplify some basic points.
1. The capitalist class fails to protect workers and consumers from unsafe products, makes use of child labor, pays workers little to nothing, allows for a horrific working environment, all with minimizing cost and maximizing profit in mind.
2. Rightfully, the working class rejects these practices and fights back, going on strikes, forming unions, rioting, etc.
3. The state has no choice but to do something about the situation. Basic safety regulations are passed. A minimum wage is put in place.
4. The capitalist class responds by becoming politically involved. Lobbying, creating think tanks, bribing politicians, etc.
5. In response, politicians not only promote lobbyists’ agenda while running, they make sure to vote against legislation conflicting with their interests and favor certain businesses, rewarding them with privileges such as favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of state interventionism.
6. Businesses serve the state and/or use its power to their advantage whenever possible. See: censorship, surveillance, attacking opposition, trade agreements, etc. The revolving door between the public and private sector thrives.
The capitalist class chose to participate in cronyism. Tell me how the free market would prevent that when it has failed to do so every time.