How do trade unions reduce inflation ?
Like the man above said. Unions in economics DO NOT REDUCE inflation, they contribute to it by demanding for higher wages for ALL Members and affiliates, even at the cost of other workers who are non-members. As for politics stuff, unions are a representative form of control for labour, which is one of the 3 most important “factions” in any state: 1. Labour 2. State/government 3. Capital/business/firms Unions can be centralized and provide a platform to control inflation if they are wide-spread and easily controllable; a good example would be tripartism in Germany; whereby unionization is widespread and union leaders are easily placated (deals done much better) by firms in negotiations so as to control their constituents. Germany’s labour relations has been characterized by mass wage-restraint, whereby all workers believe that non-inflation is a public good, and if everyone chips in by not demanding higher wages, everyone benefits since the state is less likely to have higher inflation
