Perhaps we should cut the word up a bit.

We add -ify to a word to give the meaning of "to make ____".  Clarify / pacify / rectify / beautify / mummify = to make clear / peaceful / right / beautiful / into a mummy, for example.  We use -ification for the noun form, ie. "the state of being made ____".

So you're really asking about the slang word for pussy.  It typically means a woman's genitals, and by extension "effeminate". When applied to men, it suggests they are weak and cowardly.  (Yep there be sexism.)

So "pussification" = "the state of being made into a pussy". And George Carlin means that the old "strong" image of the American male has been made weak.

In the video I watched, the audience laughed when they heard "pussification". Did the same thing happen in the version you saw?

pussification(noun): the state in which a society becomes less and less tough. This noun's originator is <a class="autolink" href="https://www.urbandictionary.com/define.php?term=the%20famous" data-hasqtip="9" style="color: rgb(19, 79, 230); line-height: inherit; text-decoration-line: underline; font-weight: bold; font-family: "Source Sans Pro", "Helvetica Neue", Helvetica, Roboto, Arial, sans-serif; font-size: 16px; background-color: rgb(255, 255, 255);" data-external="true">the famous</a> comedian George Carlin.

Source: https://www.urbandictionary.com/define.php?term=pussification

It’s just a made up word. I’d never use it and never had, and I’m a 60 year old native speaker. Understand it as just a vulgar invention but never use it. 

"context from TED " You are the responsible for the pussification of the American male""

I would translate it as 'you are responsible for effeminate men'. Men becoming effeminate, womanly, too sensitive and not tough.