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We rarely hear, it has been said, of the combinations of masters, though frequently of those of workmen. But whoever imagines, upon this account, that masters rarely combine, is as ignorant of the world as of the subject. Masters are always and everywhere in a sort of tacit, but constant and uniform combination, not to raise the wages of labour above their actual rate: [When workers combine,] masters: never cease to call aloud for the assistance of the civil magistrate, and the rigorous execution of those laws which have been enacted with so much severity against the combinations of servants, labourers, and journeymen.

Adam Smith#3

EconomicsLawPowerWork

About this quote

What does it mean?
Masters often collude to keep wages down, unlike workers who face legal barriers. They use laws to maintain low labor costs.
In plain terms
Employers unite to stop wage increases while workers face legal restrictions.
What can you take from it?
Recognize hidden collusion among employers to suppress wages.

Where it applies

  • workplace negotiations
  • labor disputes
  • policy review

Putting it to work

  • labor law analysis
  • union organizing

Questions to consider

  • Are wages truly free?
  • How do laws affect workers?

Another view

Not all employers collude; market forces vary.

More from Adam Smith

  1. But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely t…

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  2. People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contr…

    Permalink to quote #4
  3. Upon the whole, I have always considered him, both in his lifetime and since his death, as approaching as nearly to the idea of a perfectly wise and virtuous m…

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