What is the disadvantage for a weaver in the “Putting-Out System” of making a living?

Correct option is C

Weaver has no control over pricing of cloth in the market, and the merchant walks away with the profit. The Putting-Out System is a system of production where merchants distribute raw materials to artisans or weavers, who then complete the production process (such as weaving yarn into cloth) in their homes. Once the work is completed, the finished goods are returned to the merchant, who sells them in the market. While this system allows weavers to work from home and not worry about sourcing raw materials, it has significant disadvantages for the weaver, particularly related to pricing and profit-sharing.

Information Booster:

·       Merchant’s Role in the Putting-Out System: The merchant controls both the raw material supply and the sale of finished goods, leaving little room for the weaver to influence pricing or profits.

·       Weaver’s Disadvantage: The lack of bargaining power means that weavers are often underpaid for their labor, while merchants can make significant profits by selling the finished goods at higher prices.

·       Fixed Wages: Weavers usually receive fixed wages or payments, which remain the same regardless of the market price of the finished goods.

Additional Knowledge:

·       Putting-Out System: This system is common in industries like textiles, where merchants supply raw materials (such as yarn) to workers, who process them into finished goods. The weaver’s dependency on the merchant results in unequal power dynamics, leading to a loss of profit for the weaver.

·       Profit and Pricing Control : The weaver’s inability to control the pricing and profit margins limits their earnings, as the merchant, who controls the market sale, takes the larger share of the profit.