Diminishing material conditions makes a fertil breeding ground for right wing nationalism (isolationism and xenophobia). It's a pattern being replicated all over the world. UK citizens don't have high heat bills and sewage leaking into their rivers because of privatization and Brexit, it's because there's too many refugees!

Of course it's incorrect, but without the diminishing material conditions, it's a lot harder to get people to drum up the energy to be racist.