According to Adam Smith, what is often the outcome when people of the same trade meet?

Adam Smith, in his writings, particularly in "The Wealth of Nations," discusses the behavior of individuals in similar trades when they come together. He argues that when people of the same profession meet, there is a tendency for them to conspire against the public, especially in terms of setting prices and wages that benefit their own interests rather than serving the consumers or the economy as a whole. This is seen as a form of collusion where individuals prioritize their financial gain over fair competition and public welfare. This behavior reflects a concern that such gatherings might lead to practices that impair competition, ultimately harming consumers and the market.

The perception of a conspiracy aligns with Smith's observations about how businesses tend to act in self-interest, seeking to maximize profits often at the expense of the public good. This understanding is foundational in economics as it highlights the tension between free-market competition and potential monopolistic or anti-competitive behavior that can emerge when members of a profession unite for their interests.