Not sure point One is fully correct. I think they often realize things is going to be shitty for everyone, but they think it will be less shitty for them if it gets more shitty for others. They know they will be an exploited working class (even if it is not phrased that way for them) as long as there is a part of the working class (immigrant workers, women workers, …) that is beneath them it makes them feel more ‘on top’.