One of the most despicable aspects of governance of man by man is cronyism. Friedman had it right in his last sentence; Government should be a referee, not an active player.
Sadly, politicians invariably find power an insatiable addiction once they taste it, and they also find that, with that power, they are able to become very wealthy. When the ethical foundation of a politician is compromised they become a conduit for cronyism, and their power ceases to be wielded in the name of fair governance. Instead, a cronyist politician will empower their friends, punish their enemies and promote the causes that provide for the greatest return for them
, often at the expense of the citizenry.
Term limits may not be a perfect solution for this problem, but it would ensure that those who create flawed legislation would at least consider the impacts of that legislation on their
lives as they return to civilian life at the end of their limit.
H/T: +Florence Johnson