Koch Industries chairman and CEO Charles Koch writes:
Today, many governments give special treatment to a favored few businesses that eagerly accept those favors. This is the essence of cronyism.
Many businesses with unpopular products or inefficient production find it much easier to curry the favor of a few influential politicians or a government agency than to compete in the open market.
After all, the government can literally guarantee customers and profitability by mandating the use of certain products, subsidizing production or providing protection from more efficient competitors.
Cronyism enables favored companies to reap huge financial rewards, leaving the rest of us – customers and competitors alike – worse off.