Opinion: The next federal election needs to be about the economy, stupid

financialpost.com:

By Paul Deegan and Kevin Lynch

Federal law says there has to be an election by Oct. 20 of next year. The current level of rancour in the House of Commons suggests it may come sooner rather than later. We believe, echoing Democratic strategist James Carville, that whenever it does happen it needs to be “about the economy, stupid.” Three issues should top the list: sound fiscal management, stronger economic growth and a closer relationship with the Americans.

Those who thought ultra-low interest rates would last forever were naïve. Easy money, free-wheeling government spending and deficits, and supply chain disruptions created a perfect storm for inflation, and eventually forced central bankers to step on the brakes and raise interest rates. Though inflation finally seems under control, the higher prices it brought are here to stay and there will be no return to the ultra-cheap money of 2009-2022. Financing government debt that has more than doubled over the last decade will be costly for taxpayers.

Canada needs a clear, credible plan to eliminate the federal deficit so we can begin to whittle down the national debt. That is a tall order, but we have done it before. Our debt-to-GDP ratio fell from nearly 70 per cent in 1995-96 to under 30 per cent just 12 years later. We went from being what the Wall Street Journal described as an “honorary member of the Third World” to the fiscal envy of the G7.

Ottawa needs to go on a Slim-Fast diet, beginning with a serious program review. Because we are laggards on our NATO commitments defence spending is off the table. But mushrooming subsidies, transfers and tax expenditures need rigorous review. So does the federal public service, which has grown more than 40 per cent over the last