You might recall that a while back liberals were insisting that the “uncertainty” argument was total bunk. The bad economy had nothing to do with businesses sitting on their money because they were uncertain about the future of the tax code, government programs and so on coming down the pike and everything to do with a lack of demand. As Jonathan Chait put it, “Investment is lower because there’s not enough consumer demand. That’s the whole story.”
Well, here’s Ben Bernanke this week: “Is uncertainty about the future of the tax code, government programs and so on a negative for growth? I think it is.”
Video over at the Free Beacon (which seems to have one too many “E”s in its name).