We have a population of 40 million Black people and a buying power approaching $1.1 trillion in 2015. African American buying power is at the epicenter of our economy. Our consumerism keeps American corporations rich and our community poor. To be specific, the Black American Economy already represents the 16th largest market in the world, and is on the verge of surpassing the gross national income of Mexico.
And we still can’t breathe because consumerism suffocates us.
Revered Jesse Jackson addressed a Black audience at PUSH on Saturday following the disappointing decision to not indict the white police officer who had shot and killed the unarmed Michael Brown. He asked several things of them, one, to support Rainbow Push, to also subscribe to The Chicago Defender and Ebony, and lastly, to invest in your child’s college education with Ariel Capital. His point? In his instructional way, Reverend Jackson was saying ‘support Black organizations and businesses and invest in our future because our children are the future.’ His message is not new.
We have witnessed Black men murdered in their prime by violence both by us and the police in unacceptable numbers. We have protested against police brutality and asked for better law enforcement to stop and prevent the gang violence in our communities. We have marched and sat in for equal quality education in our neighborhoods. We have boycotted Black Friday in an effort to be heard and get the attention of the people who are in position of power. I think that’s the track to be on, but what we must first understand is that we have the power.
We may not be unified on many things but in our suffering and our spending we are united. Let’s use that commonality to transform our circumstances.
Knowledge is power, information is power and money is power. When you can affect the bottom line of a business you yield power.
Let me mention a few of our favorite purchases like cars and liquor. Blacks make up only 13 percent of the U.S. population yet account for 30 percent of the country’s Scotch consumption. Now how is that? Detroit, 80 percent Black, is the world’s No.1 market for Cognac and we’re not talking cheap liquor. It is known that Blacks buy expensive alcohol making Courvoisier high on the list.
So listen, Lincoln was so impressed with the $46.7 billion that Blacks spent on cars that the automaker actually commissioned Sean ‘P. Diddy’ Combs to design a limited edition Navigator, which sold for a hefty $85,000 and only 100 of them were produced. That’s the power to influence at work.
This economy remains challenging, especially for African-Americans, for whom the unemployment rate is more than 10 percent. Alarmingly, rather scaling down, the response has been to spend more. One is likely to notice satellite dishes and expensive new cars in many poor neighborhoods. And though others may not understand why, we get it. You’re going to spend more time in the house and less outside on entertainment.
So here’s the deal. We currently contribute more to big businesses than they care to discuss. It’s one of the best kept secrets and yet we get no respect as print media ad wise, no respect as people customer service wise, no respect when it comes to jobs like marketing research where our knowledge could make a difference and certainly no respect in the political or law enforcement arenas.
A few spending distinctions are major like fewer than 50 percent of Black families own their homes compared with more than 70 percent of whites. According to published reports, the Ariel Mutual Funds/Charles Schwab, 2003 Black Investor Survey found that when comparing households where Blacks and whites had roughly the same household incomes, whites saved nearly 20 percent more each month for retirement, and 30 percent of African-Americans earning $100,000 a year had less than $5,000 in retirement savings.
While 79 percent of whites invest in the stock market, only 61 percent of African-Americans do. These choices have much to do with information and knowledge. Certainly, higher rates of unemployment, income disparity and credit discrimination are financial impediments to the economic vitality of Blacks, but so are our consumer tastes.
We can’t afford to get caught up in America’s addiction to drama especially around our lives whether it’s Eric Garner, Michael Brown, Tamir Rice or Lennon Lacy. If their lives mean something then we will find the courage to change our spending habits. It takes commitment and organization. And we must be intention driven. Even during this holiday season, we should avoid over spending and if we must shop for gifts, shop Black. Spend your money in our communities.
When we figure out what we want, organize and then do it we might be surprised at how far the $631 billion ($631,000,000,000.00) we now earn might take us in making a difference in our lives. Exhale . . .
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