Page 12 - September October 2018 Disruption Report Flip Book

TRUMP ADMINISTRATION SEJPATN.U-AORCYT.20210818
The Trump administration’s Opportunity Zones may attract $6 trillion of investments in economically distressed communities
The Opportunity Zone program is structured to encourage investment in “hollowed out America”
OZ
The Trump administration’s Opportunity Zones may attract $6 trillion of investments in economically distressed communities
What’s the scale of the “opportunity” here for the country’s new zones? “Over $6 trillion,” responded The Economic Innovation Group. They continued:
When the Investing in Opportunity Act — the legislation that led to Opportunity Zones — was first introduced in Congress in 2016, EIG conducted an analysis of the Federal Reserve’s Survey of Consumer Finances and Financial Accounts of the United States data to calculate that U.S. households were sitting on $2.3 trillion in unrealized capital gains in stocks and funds alone at the end of 2015. Fast-forward to the end of 2017 — a stock market boom later — and that figure climbed to $3.8 trillion. If you include U.S. corporations, which we conservatively estimate held $2.3 trillion in unrealized capital gains on their books at the end of 2017, the pot of potential capital eligible for reinvestment in Opportunity Zones climbs to a total of $6.1 trillion.
If only a fraction of that $6 trillion flows into Opportunity Zones, this new provision will quickly become the largest federal community development initiative in memory. (Opportunity Zones: Tapping into a $6 Trillion Market, Economic Innovation Group, 03/21/18)
The Opportunity Zone program is structured to encourage investment in “hollowed out America”
UBS’ Jonathan Woloshin, Thomas McLaughlin and Andrew Lee wrote:
© 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com 12