In simple terms, this statement refers to a blacksmith who operates without any apprentices or additional workers. The idea conveyed here is that such an individual does not experience a conflict between the tools they own and the effort they put into their work, as there is no contradiction in how these elements interact within their business.
The deeper meaning of the quote delves into economic theories about labor and capital. Stanford suggests that when someone owns both the means of production (tools) and performs all the labor themselves, there is a natural harmony between these components because they are not at odds with each other. This scenario contrasts sharply with larger operations where owners may see conflicts arise due to differing interests between those who own capital and those who perform labor. The quote highlights the simplicity and coherence of small-scale entrepreneurship or self-employment, where the owner’s personal efforts align seamlessly with their investments.
Leland Stanford was a notable American businessman and politician who co-founded the Southern Pacific Railroad Company and served as the 8th governor of California before later becoming a U.S. Senator. His observation reflects his broader understanding of economic systems and labor dynamics during the Industrial Revolution era, where he witnessed significant changes in how businesses were structured and operated.
