What’s the Plan?
On November 20th, 2014, President Obama finally announced his plans for executive action on immigration reform. While it’s only a temporary solution to a long-term problem, it will help almost half of all undocumented immigrants gain official status — nearly five million people.
President Obama’s plan extends the temporary relief from deportation of the Deferred Action for Childhood Arrivals (DACA) to undocumented parents of U.S. citizens and lawful permanent residents. In order to temporarily stay in the U.S. for 3 years, qualified individuals will have pass a background test and pay any back taxes. The plan also moves the window to include even more DREAMERs.
The most obvious benefit will be improved quality of life for many undocumented immigrants. Moving from the shadows and into a fully recognized status can mean more opportunities, more work, and greater stability for their families. Also, many currently working in the gray economy will see an increase in wages.
That will also result in increased tax revenue for the U.S. Previously, only a third of undocumented workers and the people that employed them paid payroll taxes. Now, with official status, we can expect to see an increase in the gross domestic product up to .9% (nearly $210 billion over 10 years). The first year alone will net the federal government $3 billion.
But what about the “increased competition” for low-wage work? Many experts believe that the plan will lead to an increased average wage of about .3%. While not much, it’s certainly not the fall in wages that most opponents of immigration reform expect. And now that nearly one half of undocumented immigrants will compete on an even playing field with citizens, there won’t be such a large potential source of below-minimum-wage labor. Many companies have been asking for reform like this for quite a while.
Who Doesn’t Benefit
President Obama’s plan leaves some immigrants undocumented and negatively impacts at least one industry.
First, undocumented immigrants who arrived within the last five years don’t qualify. This means that over 10,000 Central Americans who have fled the violence in their countries since 2010 will remain undocumented for the time being.
Second, the private prison industry will lose out on the massive amounts of detainees awaiting deportation. While it’s unfortunate that an industry will take a hit as a result of the president’s actions, fewer detainees is generally a good thing.
Why It’s Good For Us
The President’s plan is certainly the temporary help that many both citizens and undocumented immigrants need — it’s just not the overarching reform that the U.S. desperately needs. While critics have found way to admonish the President, ImmigrationPolicy.org notes that every president since Eisenhower has executed similar executive actions for certain groups on immigrants. With nearly 39 examples, executive action for immigrants is essentially a Presidential precedent at this point.
Hopefully this plan will push Congress to finally bring meaningful reform when they see how much it helps immigrants, citizens and businesses all over the U.S.