Guild

A guild is an association of people of the same trade or pursuits, formed to protect mutual interests and maintain standards of morality or conduct. Historically they were benefit societies or small business associations, since each crafter was a self-employed individual artisan or part of a small craft shop or co-operative. They exist in modern and medieval incarnations, both of which are discussed in this article. One's view of guilds tends to be heavily colored by one's view of political economy, since the whole history of trade, technology, intellectual property, regulated professions, social security, and professional ethics are entwined with the history of the guilds in Europe.

Fall of the guilds

Despite its advantages for agricultural and artisan producers, the guild became a target of much criticism towards the end of the 1700s and the beginning of the 1800s. They were believed to oppose free trade and hinder technological innovation, technology transfer and business development. According to several accounts of this time, guilds became increasingly involved in simple territorial struggles against each other and against free practitioners of their arts, but the neutrality of these claims is doubted. It may be propaganda.

Related Topics:
Free trade - Technological innovation - Technology transfer - Business development - Propaganda

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Two of the most outspoken critics of the guild system were Jean-Jacques Rousseau and Adam Smith, and all over Europe a tendency to oppose government control over trades in favour of laissez-faire free market systems was growing rapidly and making its way into the political and legal system. Even Karl Marx (not normally in league with Adam Smith) in his Communist Manifesto criticized the guild system for its rigid gradation of social rank and the relation of opressor/opressed entailed by this system. From this time comes the low regard in which some people hold the guilds to this day. For example, Smith writes in The Wealth of Nations (Book I, Chapter X, paragraph 72):

Related Topics:
Jean-Jacques Rousseau - Adam Smith - Laissez-faire - Free market - Karl Marx - Communist Manifesto - The Wealth of Nations

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:It is to prevent this reduction of price, and consequently of wages and profit, by restraining that free competition which would most certainly occasion it, that all corporations, and the greater part of corporation laws, have been established. (...) and when any particular class of artificers or traders thought proper to act as a corporation without a charter, such adulterine guilds, as they were called, were not always disfranchised upon that account, but obliged to fine annually to the king for permission to exercise their usurped privileges.

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In part due to their own inability to control unruly corporate behavior, the tide turned against the guilds.

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Because of industrialization and modernization of the trade and industry, and the rise of powerful nation-states that could directly issue patent and copyright protections — often revealing the trade secrets — the guilds' power faded. After the French Revolution they fell in most European nations through the 1800s, as the guild system was disbanded and replaced by free trade laws. By that time, many former handicraft workers had been forced to seek employment in the emerging manufacturing industries, using not closely-guarded techniques but standardized methods controlled by corporations.

Related Topics:
Patent - Copyright - Trade secret - French Revolution - 1800s - Corporation

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This was not uniformly viewed as a public good: Karl Marx criticized the alienation of the worker from the products of work that this created, and the exploitation possible since materials and hours of work were closely controlled by the owners of the new, large scale means of production.

Related Topics:
Public good - Karl Marx - Alienation - Exploitation - Means of production

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