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# Manufacturers' Monopoly Power

## Definition

The political and economic influence wielded by domestic manufacturers who benefit from trade restrictions and import prohibitions. This power often allows them to maintain protectionist policies even when such policies harm the broader economy.

## Source Chapter

Book IV, Chapter 2

## Context

Smith warns about the growing power of manufacturers who have secured monopolies through trade restrictions, comparing their influence to that of a standing army. He argues that their political power often prevents the implementation of beneficial free trade policies.

## Economic Domain

Regulation

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