You’re working as a staffer for a member of Parliament. She is looking to sponsor a private member’s bill for dental insurance. She asks you to brief her on how she might implement it as

(a) a direct-spending program,

(b) a tax expenditure, or

(c) using regulation. Describe the implications, as well as some of the pros and cons of each approach.

Learning Objective 23.2 Discover how fiscal policy can smooth business cycles.