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FOCUS QUESTION What were guilds, and why did they become controversial in the eighteenth century?

One consequence of the growth of rural industry was an undermining of the traditional guild system that protected urban artisans. Guilds continued to dominate production in towns and cities, providing their masters with economic privileges as well as a proud social identity, but they increasingly struggled against competition from rural workers. Meanwhile, those excluded from guild membership — women, day laborers, Jews, and foreigners — worked on the margins of the urban economy.

In the second half of the eighteenth century, critics like Adam Smith attacked the guilds as outmoded institutions that obstructed technical progress and innovation. Until recently, most historians repeated that view. An ongoing reassessment of guilds now emphasizes their ability to adapt to changing economic circumstances.