Pro-business and pro-market are different, and a failure to see that difference leads to cronyism. No academic is making that case more clearly these days than Luigi Zingales. You should read this interview Zingales gave the Economist. Highlights:
There is not a well-understood distinction between being pro-business and being pro-market. Businessmen like free markets until they get into a market; once they are in it they want to block entry to others…..
Lobbying may once have been reactive but now it’s proactive—businessmen use it to shape policy and ask for tax advantages. This is corruptive of democracy….
The policy today is intervention with government subsidies in order to promote this or that sector. Why don’t we abolish all intervention in the form of subsidy….
At the end Zingales has an interesting suggestion: taxing lobbying. I think this is wrongheaded for many reasons, but I have a solution that is kind of close: require lawmakers, senior staff, and top executive-branch officials to disclose all lobbying contacts they receive, in detail and in real time. Then we don’t discourage lobbying — we just encourage people to only lobby for things they are proud to lobby for.