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Labor unions can increase wages through:
collective bargaining
Reducing supply of labor
and increasing demand for labor
In collective bargaining, the workers can send their representatives to negotiate new working terms with employers (including work hours and increasing wages).
Reducing supply of labor would make the existing laborers become more lucrative, rare and valued. This would resulted in an increase of workers' wages.,
Increasing demand for labor can be done by improving the members' skills through courses or seminar. By having additional skills, the members can be eligible to harder and more rare job opportunities. This usually correlate with higher wages
Answer: Selective optimization with compensation
Explanation: Based on the above scenario the principle at work is Selective optimization with compensation. This theory was developed by Paul and Margaret Baltes, that individuals try to maintain a balance in their lives by looking for the most effective way to compensate for physical and cognitive losses and to become better in activities they can already do well.
USA foreign policy was severely reshaped repudiating the monroe doctrine of non interference to a more proactive international presence that led to supporting of unpopular dictatorial regime.
Economically, the economy was remodelled to be consumption driven.
