This seems like a very one-sided description. You didn't mention the motivation for doing this? What's the benefit?
> put up interest rates. This raises the cost of business credit, and at the margin, puts people out of work, until employment reaches the "non-accelerating rate" (NAIRU)
Instead, keep interest rates now. Then wages will go up, but prices of goods also go up, and prices are less stable. This seems strictly worse for everyone.
> break labour power by legislating against unions, breaking up state-owned businesses into the private sector, and promoting the Uber-style "independent contractor" model where people aren't employees
This is not really within the purview of Fed policy, but the various legislatures. If you had the opposite, probably real wages will go up. In the socialist ideal case, more of GDP will go to labor, and laborers will get more equal salaries, which is great.
The other side's argument is that with strong unionization you would a lot of stagnation: jobs that have low economic output but are still there because the unions keep it in place. General Motors is a classic example of a company beholden to it's labor so that capital doesn't want to invest in the company at all, and it ends up having relatively low productivity.
FWIW I disagree with this. Prices will go up, which will incentivize adding new supply, and prices will eventually stabilize at a new (albeit higher) rate. This will eventually be compensated for through the wage-price cycle.
Rising prices are a function of supply exceeding demand right. There's simply not enough gas right now for everyone. So you can either reduce demand, or you can increase supply. Reducing demand, IMO, isn't the right way forward.
Biden can increase fuel supply by approving pipelines or allowing more drilling on federal land. This would help the poor and laborer class. But he won't.
[1] https://www.npr.org/2022/03/19/1086925726/gas-prices-oil-cru...
Agree that prices will eventually stabilize even if the Fed doesn't tighten (as long as they don't keep expanding). The government only printed so much money, so that when nominal GDP grows it'll have to hit a ceiling.
I think you're missing the point. Employees are desperately trying to increase supply right now. They need people to do so, but there aren't enough of them. That's why the labor market is so tight right now.
Rising prices aren't going to goad the economy into adding supply that it's already trying and failing to add. They're just going to destabilize the economy.
We can have an economy with structural issues, or we can have an economy with structural issues AND high inflation. We might ask Argentinians what they'd prefer.
thus the prices go down and inflation goes down