Study shows Black buying power to grow despite economy

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WASHINGTON – Despite an economy represented by high unemployment rates, a home foreclosure crisis and low consumer confidence, African American buying power is projected to reach $1.2 trillion in 2013, according to a report conducted by the University of

WASHINGTON – Despite an economy represented by high unemployment rates, a home foreclosure crisis and low consumer confidence, African-American buying power is projected to reach $1.2 trillion in 2013, according to a report conducted by the University of Georgia’s Selig Center for Economic Growth.

The report, The Multicultural Economy, published in late 2008, estimates that African-American consumers’ share of the nation’s total buying power will increase from $913 billion, resulting in a contribution of almost 9 cents out of every dollar that is spent.

Despite this predication, economists believe that consumption by African-Americans will not only fall, but that African-Americans will also continue to be the brunt of high unemployment, suffer an increase in poverty, and suffer from a reduction in wages and income.

“African-American consumers’ share of the nation’s total buying power will rise to 8.8 percent in 2013, accounting for almost 9 cents out of every dollar that is spent,” the report states. It partially credits population growths as well as the growth and expansion of African American-owned businesses as the reason for the projected rise in buying power.

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