What you're describing is a market, not capitalism. Markets aren't exclusive to capitalism. There are various types of leftist market economies. Capitalism is distinct in that the means of production are privately owned, as dublinben said. As such, "crony capitalism" is capitalism even if some see it as distinct from laissez-faire capitalism. Really though, crony capitalism is all that has ever existed to my knowledge. The "robber barons" of the late 19th century - early 20th century were all well connected politically and used their wealth and power to benefit themselves and their ventures. I'd argue that a society built around class hierarchies and a strong state will always lead to such relations as those with wealth and power seek to further their interests.Capitalism is just people producing goods and services and engaging in trades and investments.