Why no jobs? Fear.

Despite what politicians say, the lack of job creation in this country has nothing to do with the tax code. It has everything to do with the stratification of the economy and the strangulation of initiative. To make it worse, no one wants to invest because of what I just read here. The reckoning has yet to arrive.

Those toxic assets are still there, and they’re spreading their poison into the rest of the economy. Private businesses have no idea what will happen when the Fed pulls away all its support—or what will happen if the Fed doesn’t pull away its support. So companies hoard cash rather than create jobs. People, too, hoard cash. Stuck with the bubble’s hangover of private debt, they have no idea how they’re going to pay for their kids’ education or their own retirements. Even employed people without much debt are terrified that they’ll lose their jobs and won’t get new ones—so they don’t spend money, further depressing consumer spending and killing more jobs.

via Why We Dont Recover by Nicole Gelinas – City Journal.