Original sentence: Guilds persisted over the centuries because they redistributed resources to politically powerful merchants.Ogilvie says they generated no demonstrable positive externalities and notes that industry began to flourish only after the guilds faded away.On the other hand, Ogilvie agrees, guilds created "social capital" of shared norms, common information, mutual sanctions, and collective political action.On the other hand, as Ogilvie (2004) argues, the guilds negatively affected quality, skills, and innovation.They were control mechanism --or what economists now call "rent-seeking" and imposed deadweight losses on the economy.This social capital benefited guild members, even as they hurt outsiders
Edited sentence: Guilds created "social capital" of shared norms, common information, mutual sanctions, and collective political action.This social capital benefited guild members, but restricted outsiders