A large, influential national union representing manufacturing workers is entering negotiations during a period of rising consumer prices and growing concerns about the country's products becoming too expensive for international buyers. The union has the power to secure a substantial wage increase that would match the recent rise in the cost of living. However, the union's leadership proposes to demand a more moderate wage increase. Analyze the two primary economic rationales that could justify this strategy of wage restraint, distinguishing between the potential consequences at the level of the individual firms and the broader national economy.