Economics of Macro-focused Unions

In Chapter 9, we explained why labour unions want better wages, better fringe benefits and job security for their union members. But globalization makes their effort less effective if not totally useless. Greek economy is in trouble and the Greek government is forced to impose austerity measures and the Greek unions naturally protest viciously. But is there a better way for the Greek labour unions to react? Or more importantly, can the Greek labour unions prevent the Greek economy from getting into this mess in the first place? This chapter is not about the Greek economy but it is a chapter on how a good union can help an economy cope with globalization where demand for products is price elastic and demand for social spending at home is excessive…