Crony capitalism can take many forms including regulatory capture ( regulated interests actually using government power to squelch competition), zoning, licensing, in some cases even copyright, and hundreds of other ways. The one thing all of these “tools” have in common, however, is that they are used by the politically connected few to extract money and power from the unconnected many.

Government gives a veil of legitimacy to actions taken by individuals and groups that would be considered unethical (at best) without government “permission.” More often government also uses its power to make everyone play along. If you break a law, you can go to jail.