In chapter 18’s podcast entitled, “What a 16th Century Guild Teaches Us About Competition’” the host analyze what caused the sudden shift from scarcity to growth. The hosts provide that a key component of this shift is guilds. They then question what a guild is, what role it played, and what the central forces that organized the economy of the pre-modern world were. They spoke with Dr. Sheila Ogalve, she provided the example of a guild of “urban and rural weavers” from the 1780s.the members of this guild kept meticulous notes, which provided a detailed list of all transactions for each year. Formed in the 1590’s this guild began to worry because other groups began entering the market in order to prevent this they took up a collection to try and make it so that they could become in monopoly and be the only ones capable of producing the product. The host argues that guilds discourage innovation. The doctor agrees that guilds do result in a lack of innovation she argues that this product began as one who, many tinkered with its design and the type of fabric that was used. It was an extremely versatile industry that responded well to changes in taste. The doctor also argues that it did not happen right away but that it took over a generation to start making such restrictions. …show more content…
The doctor provides that it becomes a question of how to introduce qualitative innovation but sadly the workers had no incentives to do such a thing because the employee would not receive more of a profit then if they were to produce the way they are