The term “cronyism” appears several times in the American political scene and after the independence of the American South in 1861 the new Republican party ramped it up. Absent Southern State opposition in Congress:
“northern Republicans possessed sufficient power to force through domestic planks of the American System: transcontinental land grants, protectionist tariffs to benefit Northern industries, and quasi-central-banking regulations. These special favors were the building blocks for a government structure of widespread restrictions and subsidies, and they were up for sale to the interest groups willing to fight for them.”
The Corruption of Land
“The fate of the infant United States initially hinged on the battle between free-market Jeffersonian Republicans and interventionist Hamiltonian Federalists. After Thomas Jefferson won the presidency in 1800 and rolled back the judicial bureaucracy, taxes and military expenditures, his desire to establish a limited confederation ran aground on the tantalizing opportunity to purchase France’s Louisiana Territory. Jefferson, though recognizing that the acquisition conflicted with his constitutional scruples, could not refuse five hundred million acres.
He then embarked upon his own brand of favoritism to keep the swollen empire from breaking apart, including payments to land speculators, centralization of internal, improvements, tariffs and mercantile protection, and plans to conquer Canada and Florida. By the War of 1812, Jefferson’s Republicans were indistinguishable from the Federalists they previously fought.
An “Era of Corruption” ensued in the following decade as the new National Republicans devised an American System of central banking, [tariff] protectionism, public works largesse, federal abrogation of settlers’ rights, and foreign aggression. By 1825 the situation had gotten so deplorable that Secretary of State John Quincy Adams and Speaker of the House Henry Clay bribed congressmen in an overtime House election to steal the presidency from the frontrunner, Senator Andrew Jackson, and give it to Adams.
In the face of such flagrant corruption, Jackson allied with the politico Martin Van Buren to create a new Democratic Party devoted to restoring the old Jeffersonian laissez-faire ideology to counter the National Republicans’ growing cronyism.
The Jacksonian Democrats’ free-market reforms reduced government barriers to entry and other economic interventions. This enabled businesses to better allocate the country’s domestic pool of workers, new waves of immigrants, abundant natural resources, and growing levels of savings toward producing goods that consumers valued. Relatively freer competition in banking led to safer and more efficient banks compared to federal and State chartered monopolies. The new institutional groundwork for a new Industrial Revolution had been laid.”
(Cronyism: The Rise of the Corporatist State: 1849-1929. Patrick Newman. Ludwig von Mises Institute, 2026, pp. 31-32; 56)