I've argued that a component of neoliberal economic policies is high unemployment. Overall it means less economic output. Unemployed people are like a wasted resource. But for a powerful corporation it produces low labor rates and hence high profits.
Some are puzzled by the economic policies of the US government in the wake of the financial crisis. Paul Krugman wonders if the unemployed have been forgotten. The latest jobless report reveals a surprising spike in jobless claims. Is it because, as they suggest at Talk Left, that Obama is "foolishly" listening to Tim Geithner?
That depends on whether one would think it's foolish for the President to serve the interests of wealth. What if unemployment is desired by them? As in Mexico and Haiti (with unemployment between 50 and 75%) this is a direct consequence of policies that are imposed, as if these conditions are the goal. And we know that they are desirable for some powerful and wealthy segments of society.
A recent article sheds further light. Why The Rich Love High Unemployment. It's not all that puzzling that Obama is doing little to nothing. It's what his corporate backers want.