Florida Gov. Ron DeSantis recently signed legislation that strips Walt Disney World of its independent, special-district status after the company objected to the state's new law regarding discussion of sexual orientation or gender identity in classrooms. While the motive behind this action is problematic, some of its supporters argue that there is nothing to fret about, since it was time to revoke a cronyist privilege granted to Disney 50 years ago anyway. But if this is really a fight against cronyism, the legislation goes about it the wrong way.
Cronyism is the unhealthy alliance of business and government. It takes the form of government officials at the state, local, and federal levels granting special privileges to particular companies or industries. These privileges can include special tax breaks, government loans, direct subsidies, or—as in Florida—so-called "special districts." I spend a great deal of my work hours researching the harm cronyism causes to citizens. That's because, as my colleague Matthew Mitchell wrote a decade ago, "Whatever its guise, government-granted privilege [to private businesses] is an extraordinarily destructive force. It misdirects resources, impedes genuine economic progress, breeds corruption, and undermines the legitimacy of both the government and the private sector."
