What's the Business Case for Investing in America's Low-Income Communities?

Goldman Sachs Exchanges

Julia McGonagle

Business

4.4 • 1K Ratings

🗓️ 22 May 2019

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

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Summary

The 2017 tax overhaul created incentives for investing in certain low-income communities across America, or "opportunity zones" as they're called. In this episode, Margaret Anadu, head of Goldman Sachs Urban Investment Group, explains the opportunity zone investing landscape and the role of private capital in revitalizing struggling communities. "There's no way we're going to change the situation in low-income communities and bring back all of that opportunity without the investment of private capital," Anadu says. This podcast was recorded on May 7, 2019. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast is not financial research nor a product of Goldman Sachs Global Investment Research. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity. Copyright 2019 Goldman Sachs & Co. LLC. All rights reserved.

Transcript

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0:00.0	This is exchanges at Goldman Sachs where we discuss developments currently shaping markets, industries,
0:13.6	and the global economy.
0:15.0	I'm Jake Seeward, Global Head of Corporate Communications here at the firm.
0:18.5	The question of today's episode is, what's the business case for investing in America's low-income communities?
0:24.6	To answer that, we're joined by Margaret Anadu, head of the firm's Urban Investment Group.
0:28.9	Margaret, welcome to the program.
0:30.1	Thanks for having me.
0:30.9	So Margaret, you run a business that invests primarily in low-income
0:35.0	communities but before we talk about the business side help us first understand the
0:39.6	non-financial argument for investing in low-income communities in the U.S.
0:44.0	Sure.
0:45.0	It's no secret that 10 years into a very strong financial recovery here in the U.S.
0:49.4	There are still challenges facing many Americans.
0:52.1	So just to put a few numbers around that, right now
0:54.4	one in six people in this country live in a distressed community. That's 52
0:58.4	million people in total. These are neighborhoods with low graduation rates,
1:02.1	shrinking job markets, many of them have
1:04.7	high vacancy.
1:06.2	So while there's a robust conversation at the national level about how we've hit record
1:09.9	low unemployment, unemployment rates in some of these communities are still as high as
1:13.8	30%. So all that to say place matters so much. If you are born in, educated in,
1:20.0	living in, working in a low-income community in the US, your experience is vastly different
	...

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