The deferred action policy was launched by President Obama in June 2012. It is meant to halt undocumented youth from being deported, instead giving them a chance to work in the country. It will allow young people who arrived into the United States before they turned 16 to be eligible for work authorization while their deportation is lifted. The policy is definitely a noteworthy humanitarian effort in that it improves the lives of immigrants but it also has some economic advantages. This articles looks at these economic benefits in detail.

The policy can promote economic growth for each and every American. This is because rather than immigrant workers competing with native-born ones, they will complement them resulting in an overall increase in productivity. Between 1990 and 2006, the metropolitan areas experiencing the quickest economic growth were those that had the biggest increases in immigrant labor forces. This policy ensures that immigrant workers are able to enhance their skills and education, and also a legal status. This will guarantee the maximization of their contributions to the country’s economic growth.

Another benefit is that the deferred action policy will increase wages for native workers. Areas with higher immigration levels offer higher wages to native-born employees. A reason for this is that when work authorization is given to undocumented immigrants, the wage floor for all workers is raised. Employers are prevented from deleveraging wages of native workers with undocumented wages that are exploitable.

Over time, the positive effect of immigrant labor force accrues; meaning the benefits of allowing them to further their education and be employed legally will continue being felt for years to come. This is especially important since Americans find themselves in the midst of an economy that is still recovering.

One workable way of creating more job opportunities is to form demand for essential goods and services. More employment opportunities are developed if average consumers have more money in their pockets, resulting in a much better economy.

With this policy in place, it becomes possible to raise extra federal revenues. Most of the undocumented immigrant workers contribute payroll taxes, despite the fact that they do not get to benefit from them. Some of them are giving billions of dollars to programs such as the Social Security Trust Fund, and they will never get anything from it. If more undocumented immigrants can be provided with work permits, they would increase the contributions made to the fund programs thus raising more federal revenue.

If the differed action beneficiaries can be making regular contributions to the fund programs, then eventually they can be eligible for its benefits. By them being eligible, they will then make more contributions, increasing the revenue. Immigrant workers are usually younger when compared to their indigenous counterparts, meaning that once the natives retire, immigrants will raise the trust fund.

Contrary to a popular belief, the immigrant workforce is a not a substitute to the native-born workers. There is a difference between employed immigrants and jobless native workers in terms of work-experience, geography and occupation. This means that the deferred action policy will complement the native born workforce.

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