DREAM Act Portal Forum - DREAM Act: A Stimulus for the Economy

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The recent financial crisis resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. Many economists consider the recent financial crisis the worst financial crisis since the Great Depression of the 1930s. Not only did it contributed to the failure of key businesses but also it contributed in the declines in consumer wealth estimated trillions of U.S. dollars and in substantial decline in economic activity. A plethora of solutions and regulations have been implemented and suggested but there is still significant risk that remains for the world economy for the 2011-2012 periods. Today, According to the I.M.F. the global system is not fixed yet.

However, according to many, including many newspapers such as the New York Times and Business Week, businesses such as Microsoft, Senators such as The Senate majority leader, Harry Reid of Nevada, senator Durbin and many other senators and representatives say the problem might be fixed with a bipartisan bill called DREAM ACT S. 3827 (The Development, Relief and Education for Alien Minors Act) introduced by Senator Richard Durbin of Illinois in 2001 will help our economy. The DREAM Act would help undocumented students who were brought by their parents as children to the United States. If passed the DREAM Act will benefit about 2 million students here in the United States with conditional residency if they complete certain requirements such as graduating from an American high school, or served in the military for at least two years, have proof of having arrived before the age of 16, and have good moral character.

If passed the DREAM Act would help thousands of young people to be eligible to work, obtain social security numbers, and allow them to participate in the regular workforce. Moreover, if passed according to the NATIONAL IMMIGRATION LAW CENTER, DREAM Act beneficiaries would be in a position to help fill chronic long-term labor needs that economists predict will threaten our economy today and in the future, including those for teachers, nurses, and service employees. The DREAM Act would increase tax revenues and reduce government expenses. This positive fiscal impact is likely to be quite large. Based on estimates in a 1999 RAND study, an average 30-year-old Mexican immigrant woman who has graduated from college will pay $5,300 more in taxes and cost $3,900 less in criminal justice and welfare expenses each year than if she had dropped out of high school. This amount to a total annual increased fiscal contribution of more than $9,000 per person, this eventually will repay the required educational investment within a few years and thereafter would provide a profit to taxpayers for several decades.

In addition, beyond a fiscal impact, the DREAM Act would benefit the economy significantly by increasing the income of affected immigrants, thereby stimulating spending and investment. A person, who graduates from college, will increase his or her pretax income at age 30 by more than $13,000 per year. A single person with a bachelor’s degree who earns an average $60,000 of taxable income will contribute $9,640 to taxes and welfare annually; in a 40-year span he/she will have contributed $385,000. All these calculations are based solely on the educational advancement that the DREAM Act would make possible. Studies of the 1986 Reagan-era legalization program showed a dramatic improvement in income for the newly legalized population.

Currently the United States suffers from high unemployment-more than 12 % and is facing a large deficit. As the Obama administration has released new deficit numbers of a record of $1.42 trillion, which more than tripled the record set last year and in addition it is projected to be a total of $9.1 trillion in the coming decade according to U.S. Today.

The cumulative impact of the DREAM Act on the economy could amount to hundreds of billions of dollars, because it will not be limited to increased earnings, tax revenues and social services savings but it would allow a myriad of young immigrants to join the legal workforce and help businesses and the economy to fill crucial needs. Instead of working in the illegally cash economy since many work as domestic servants, day laborers, ambulatory sellers and sweatshop factory workers, while the majority of them have computer science, engineering and nursing degrees so are 25% of doctors and nurses According to the New York Times.

Finally, The DREAM Act would reduce the need to recruit foreign professionals from abroad. Most of these Immigrant students have been raised and educated in the United States. Therefore, instead of competing for skilled workers with other countries, the DREAM Act will enable the U.S. to utilize the students already here. As of today, in a globalized world, their multilingual and bicultural skills, and contributions are more important than ever to the success and global competitiveness of the United States.