718 B
718 B
Combination of Masters
Definition
The tacit and constant agreement among employers not to raise wages above their actual rate, which Smith argues is the natural state of things and is everywhere a most unpopular action to violate, often conducted with silence and secrecy when attempting to lower wages below this rate.
Source Chapter
Book I, Chapter 8
Context
Presented as the more effective side of wage negotiations, able to hold out longer than workmen due to greater financial resources and legal authorization for their combinations.
Economic Domain
Regulation