the point is that when you take the long view it’s not as if steadily increasing productivity leads to steadily declining employment—what it leads to is higher average output and rising living standards. But it only accomplishes that if the policymakers charged with macroeconomic stabilization use fiscal and monetary policy to ensure that there’s a level of aggregate demand that’s commensurate with our productive capacity. The fact that we have over 9 percent of the workforce unemployed indicates that they’re failing. But this is the fault of the US Congress and the Federal Reserve Open Market Committee (and the European Central Bank, and Angela Merkel, and the Bank of Japan, etc.) not Steve Jobs.
Yglesias explains Eco-101