The most ardent advocatess of capitalism, as well as its biggest critics, see “true capitalism” as essentially economic anarchism (more commonly known as “Laissez-faire”). In this sense, yes, true capitalism should avoid cronyism because it would be following the darwinist principle of “the most-qualified for survival in this unmanaged economy deserves the job.”

But humans cannot be trusted not to engage in cronyism. With no interventionist/organisational force (the government for instance) partaking in the economy, there is no greater power for people to put their faith in, and thus they don’t trust that their friends and family can obtain decent paying work. I would therefore argue that cronyism happens more under true, unchained capitalism.

I mean just look at how business owners behave today, in a world with some restrictions placed upon capitalism. They can’t help themselves.

Answering the question: Crony capitlism and true capitalist is a false dichotomy (distinction), but america certainly isn’t true, laissez faire, capitalist.

Would TRUE capitalism have any problems?

Capitlis, (needlessly) increases competition for resources, access to markets, and even results in fierce competition over abstract things. This is exacerbated the more unmanaged capitalism becomes, so I think True capitalism would have more problems than whatever we live under now.

Is the best thing a mix of socialism and capitalism?

I think so, yes. I am of the view that capitalism is a relic of the past, a developing species or developing society kind of thing, but communism, if it’s the ideal way of structuring society, belongs to the future. A more automated and technologically advanced future.