What the Reserve Bank in Australia ignores is a failure to recognize the facts

“Their goal is to put a chill on borrowing and spending,” it wrote of the bank, noting that the strategy “will throw people out of jobs and make workers insecure enough to stop asking for raises — even if it plunges the country into a recession.” It argued that the bank was focused on blaming workers. As indeed the bank was. So were pundits, bank economists, and right-wing politicians. According to the yarn they spun, because higher labor costs drive up prices, it is workers’ share of the economic pie that is the problem. And, of course, on this view, government spending was making things worse.

Part of the battle for a better world, then, is to shape the mainstream reality in such a way that recognizes basic facts that are inconvenient for the capitalist class. Those facts include, for instance, the empirically verifiable point that corporate profits and central bank interest rate hikes are sending housing costs up, crushing people and, you guessed it, driving inflation.

Source: Class War Is at the Heart of the Bank of Canada’s Incoherent Rate Hikes