We don't have the neoliberal turn without creating some type of logic whereby people believe that economic losers deserve what they get, and that if anything we should use government to punish losers. 

Race and racism provide that logic. 

Here's Lee Atwater in 1981 on the role of race in the GOP's electoral success.

[youtube]http://youtube.com/watch?v=X_8E3ENrKrQ[/youtube]

The entire version 40+ minute version here

There's a story in today's New York Times about unemployed French college grads. I'm convinced one of the reasons France still has a powerful welfare state is because they don't quite have the technology the neoliberal turn requires, the technology they need to turn the state away from these kids and towards other ends.