You go to the headquarters of the Federation of Trade Unions to discuss wages at the tuna plant. You explain to the union leaders that if they will accept wage cuts now, your country can export more tuna and other products. If they will not accept wage cuts, unemployment may get worse as the export producers lay off workers.

The head of the Federation of Trade Unions replies that they will not accept any cuts in wages. "How can we tell our members to take a pay cut? They already can hardly pay for necessities with these high prices!"

The meeting is a failure. You are on the verge of defaulting on your international loans. If you do this, you will have a hard time getting more loans later. What will you do?