What is a consequence of informal economic practices on South America's overall economic welfare? Informal economic practices allow for youth employment, which is important to keep them off criminal activities. informal economies allow for traditional economic activities and trade to continue to exist. OOOOO t promotes a culture of impunity, which foment corruption and homicide. Additional means of survival for the poor population, which creates further economic activities. t entails a loss in budget revenues due to reduced tax collection and social security contributions