The National Post seems to have beat all the other dailies on an internal Liberal strategy for once – which is likely more strange than the story itself.

Nevertheless, the hot rumour they splashed across their front page today is that the Liberals will be introducing “balanced budget” legislation that will force governments forever and ever to maintain a contingency fund.

Now, I understand why the Liberals are doing this after complaints the NDP has forced them into reckless spending commitments. But balanced budget laws are ridiculous. You’re tying the hands of a future government when the economic conditions could be very different than they are today. We’ve just seen two hurricanes slam into the US and you never know when natural disasters or terrorist attacks could force Canada into a temporary deficit situation. Yes, I’m sure they will build in exceptions to the law, but an economic downturn might force a temporary deficit to stimulate the economy. And remember, historians have been rather unkind of RB Bennett and WLMK for their unwillingness to deficit spend during the depression.

Governments know that running deficits in the current economic climate is unwise and unpopular. So why make a law for it? Why not legislate into law that a certain percentage of the GDP must be spent on the arts every year? Why not mandate the total paperclip budget for the House of Commons into law?

There’s no need to tie the hands of future governments. The only reason for a law like this is to score a few cheap points with the electorate.