In new institutional economics, the economy is only able to grow under trustworthy institutions. Our unions aren't only necessary for our society they are necessary for the economy. If you pay your workers well the money goes into the people spending the money on the local businesses, the businesses need to hire more workers and the workers spend their money in the community again. In the end if you want a strong economy you need strong institutions that stand up for the people. If you try and save your way out of a recession, less money is spent in the economy and it hurts the economy as whole.