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Throughout Americas history, there has never been an African-American president. In the year 2008, America elected its first African-American president Barack Obama. During his two terms as president, Obama passed out many policies hoping to better Americas economy. Of all of those policies, the best policy was the Deferred Action for Childhood Arrivals or simply DACA . Deferred Action for Childhood Action was the best policy because it opened up job opportunities for immigrants, increased labor supply, and boosted the economy’s GDP in the long run.
First, the Deferred Action for Childhood Arrivals provides children without legal documentation working visas to stay in America to work. This policy helps people from poverty-stricken countries with better employment opportunities. Most importantly, this policy allows more workers to enter America which increases workers’ productivity. Based on studies, the result shows that DACA recipients continue to make positive contributions to the economy, earning higher wages, which helps contribute to higher tax revenues( Wong et al.). The marginal cost of this act is an increase of immigrants but the marginal benefit results in growth of GDP. Since workforce productivity increases, it leads to more job openings for people with manual labor skills. DACA does reduce employment opportunities for low-income citizens without high school diplomas. However, the incentive is more people working in construction, manufacturing, and agriculture. Thus, allows more businesses to be built and expand more job opportunities.
Second, the Trump Administrations decision to end DACA will negatively affect long-run economic growth due to the lack of immigrant workers. Fewer people will have working documentation and have to revert back to nondeductible tax jobs. The tax revenues and labor supply will decrease. The economy will lose contributions toward the Medicare and Social Security programs due to less income to deduct tax from. This will negatively affect retired people who are incapable of going to work and are in need of health care. The rate of construction and manufacturing will decrease due to the loss of workforce. Businesses will lose money because all employees need legal documentation so investment money will have to go towards other resources to replace them. Some might argue that DACA doesnt increase GDP in the long run, but the results differ. According to studies, DACAs 10-year projection brings $350 billion dollars for the economy and $90 billion for tax revenues (Ohmurak 2018).
In conclusion, DACA was the best policy during the Obama Administration because it increased long-run GDP, labor supply, and job openings. This policy comes with economic benefits and demonstrates excellent humanitarian values. The policy allows more families to stay legally and puts them to work, which helps the country grow richer. Both sides benefit from this policy. The long-run economic effects of losing DACA are worse than keeping DACA. Once DACA is done, the economy will take a hit and lose GDP. The workforce productivity will decrease due to not enough legal workers. The labor supply and tax revenues will decrease because of less deductible tax. The cons outweigh the pros which demonstrate DACAs positive effects on society and the economy.
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