Identifying Opportunities in Economic & Regulatory Trends - 6A

Economic Trend Opportunity

Opportunity #1

"Andrew Yang $1,000 a month universal basic income."

Source: https://www.cnbc.com/2019/09/19/how-americans-would-spend-andrew-yangs-1000-universal-basic-income.html

There is evidence that the average American lives paycheck to paycheck and has accrued $28,900 in personal debt, excluding mortgages. I believe the majority of citizens would greatly benefit from receiving a $1,000 a month to help with monthly living costs or pay down their debt.

The prototypical customer would be the American who is in debt. The extra income would help out our economy in the long run because people will have more money to invest or spend if they're basic needs and bills are paid.

This opportunity would be easy to exploit because people are in desperate need of financial assistance. Candidate Andrew Yang's Freedom Dividends program is a possible solution to the financial crisis that is going on, and there is substantial data to back up his proposal.

Some people might argue that giving out $1,000 would increase debt, but I disagree. People sometimes dig themselves into a hole without realizing it. With the extra income, most people will likely pay off their debt or spend it wisely because they do not want to fall into the same situation they're in. Families would be able to afford daycare for their children, students would be able to pay down their student loans, and most Americans would pay off their credit card debt. For the financially stable people, they can use the extra money to save or invest.


Opportunity #2

"Forever 21 Plans to File for Bankruptcy"

Source: https://www.wsj.com/articles/forever-21-plans-to-file-for-bankruptcy-as-early-as-sunday-11568227638

There is evidence that once-popular retailer, Forever 21 is struggling to keep up with the changing consumer habits, such as online shopping. The failure to adapt is what's leading them to file for bankruptcy.

The prototypical customer would be the up and comping stores wanting to get into the fashion retail market.  They can learn from Forever 21's mistakes and quickly adapt to the changes going on in the retail business. About 7,000 stores closed this year from January to June, more than all of 2018. People are not spending their time or money inside stores anymore.

The opportunity would be easy to exploit because other stores can see what's happening to big retailers and focus more on transitioning to online shopping and new stores can sell directly through a website instead of a physical store.

I've been noticing a decline in Forever 21's popularity. In the past two years, I've stopped shopping from them because their fashion hasn't been something I'm inclined to buy anymore. Instead of opening up so many new stores, they should've focused on getting back to what they used to be and focus their money and resources to their website. Competitors such as Fashion Nova and SheIn are gaining the popularity that Forever 21 once had because they focused on their customers' needs.


Regulatory Trend Opportunity

Opportunity #1

"Lawmakers want to give student borrowers more protections from the for-profit companies in charge of servicing the student loan industry."

Source https://www.cnbc.com/2019/09/11/loan-servicers-preying-upon-students-lawmakers-look-to-change-that.html

There is evidence that student loan borrowers don't have the same protections that all consumers are entitled to in this country. There is a $1.5 trillion student loan crisis going on in this country, and under-regulated loan servicing companies are preying students.

The prototypical customers are the 45 million students who are drowning in student loans debt and have no protection.

The opportunity will easy to exploit because it's getting the much-needed attention it deserves. Democrats recently unveiled eight draft bills that would establish a student borrowers’ bill of rights, among other things. Even comedian Hasan Minhaj urged the committee to take action to protect borrowers. The process has started, and hopefully, lawmakers will see it through.

I have many friends who unfortunately have student loans in the thousands. One of them has over $250,000 (she went to law school). I agree with Hasan Minhaj; Americans should not have to go bankrupt to pursue higher education. I believe that students loans should be interest-free or at least offer better terms and protection to the borrower.


Opportunity #2

"Legalizing recreational marijuana in Florida"

Source: https://www.sun-sentinel.com/marijuana/fl-bz-adult-use-marijuana-bid-20190830-gfsium5xufcgpdsoj2uthfklg4-story.html

There is evidence that legalizing adult-use marijuana would encourage more people to buy it legally instead of on the black market, plus it would provide safe regulation.

The prototypical customer would be people over the age of 21 who wants to enjoy the benefits of marijuana without having to register for a medical marijuana card. The medical marijuana companies in Florida would benefit as well because their clientele would significantly increase, meaning more profit for them.

The opportunity will be difficult to exploit because first, it needs to qualify to be included in the ballot. Then the bill needs to be approved by 60 percent of Florida voters. There are a lot of people who still have their reservations regarding recreational marijuana use, so the odds of it passing seems low.

Although I do not smoke or consume marijuana, I am open-minded and support the legalization of recreational marijuana. I see the benefits, not only as an economic standpoint but also a safety issue as well.