Blacksmiths had to learn their skills through apprenticeship. This put them a bit above the ordinary peasant, but not much. They lived in villages and towns, but most of the villages were on manors, and so the houses in them were mostly peasant cottages. Presumably, the blacksmiths could afford to live in better houses than many of the peasants, but there were other people on manors who also had skills that put them slightly above the ordinary workers, and these included any weavers, potters, and carpenters, who happened to be there, along with the reeves and other officers of the serfs. So the blacksmith's house would not have been much better than that of serfs.
There is a link below to an article on serfs' houses.
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it was based on feudalism... there is a feudalism pyramid if you go on google images and type in feudalism pyramid
In his book Daily Life in Medieval Europe, Jeffrey Singman estimates the income of a hired tradesman, expressed in English money, to be between 3 and 9 pennies a day, based on skill of the craftsman, the type of work done, and the current economic conditions. A blacksmith would likely be toward the lower end of this spectrum.To give an example of purchasing power, a loaf of bread would have been 1/4 penny, a dozen eggs, a pound of cheese, or a gallon of ale would be a half penny. Shoes would have been 2 1/2 pennies, and a shirt 5 3/4 pennies.This is a generalization. A blacksmith in a small village might not have full time work as a smith, and would be farming as well, and may be taking some of his payments in barter. A master smith with apprentices and journeymen working in his shop would have more income due to his ability to produce more product. A journeyman might also receive a mid day meal as part of his pay, or a periodic grant such as a set of clothing once per year.
Pastoral nomadic.
Pastoral nomadic.
The medieval economy is driven by farming, and wealth was generally tied to the control of land. This type of economy is known as an agrarian economy. It is estimated that around 90% of the population lived in small villages and engaged primarily in activities such as farming, raising animals, gardening, tending orchards, and to a lesser extent fishing.