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  • Usa Today Article On Black Spending

     

    Forgive me if this is a repost, but I got this via e-mail today. Very disturbing...

    USA Today article on Black Spending Habits:

    These are tough economic times, especially for African-Americans, for
    whom the unemployment rate is more than 10%. Alarmingly, rather than
    belt-tightening, the response has been to spend more. In many poor
    neighborhoods, one is likely to notice satellite dishes and expensive
    new cars.

    According to Target Market, a company that tracks black consumer
    spending, blacks spends a significant amount of their income on
    depreciable products.

    In 2002, the year the economy nose-dived; we spent $22.9 billion
    ($22,900,000,000.00) on clothes, $3.2 billion ($3,000,000,000.00) on
    electronics and $11.6 billion ($11,000,000,000.00 ) on furniture to put into homes that, in many cases, were rented.

    Among our favorite purchases are cars and liquor. Blacks make up only
    12% of the U.S. population yet account for 30% of the country's Scotch consumption. Detroit, which is 80% black, is the world's No. 1 market for Cognac (Pass The Co---------).

    So impressed was Lincoln with the $46.7 billion ($46,000,000,000) that blacks spent on cars that the automaker commissioned Sean "P Diddy" Combs, the entertainment and fashion mogul, to design a limited-edition Navigator complete with six plasma screens, three DVD players and a Sony PlayStation2.

    The only area where blacks seem to be cutting back on spending is books; total purchases have gone from a high of $356 million in 2000 to $303mill! ion in 2002. This short-sighted behavior, motivated by a desire for instant gratification and social acceptance, comes at the expense of our future.

    The National Urban League's "State of Black America 2004" report found that fewer than 50% of black families owned their homes compared with more than 70% 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% more each month for retirement, and 30% of African-Americans earning $100,000 a year had less than $5,000 in retirement savings.

    While 79% of whites invest in the stock market, only 61% of
    African-Americans do. 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.

    By finding the courage to change our spending habits, we might be
    surprised at how far the $631! billion($631,000,000,000.00) we now earn might take us.

    We all send thousands of jokes through e-mail without a second thought, but when it comes to sending messages regarding life-affirming choices, people think twice about sharing. So please pass this on.

    Knowledge is POWER

    It just makes me sad because I know so many people who do things like this. SMH.

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    Member
     

    So true but not so new at all. I've long worried about black people being consumers more than investors. We consume so much and wear a lot of our paychecks on our backs. Or ride around in it. It's sad. But looking good is a HUGE part of our culture and is what is constantly being peddled to our kids. Diamonds and cars take a far 1st and 2nd over education, home ownership, and retirement.

    In addition, just look at how much we as black women spend on our hair and nails? It just cracks me up that you will see more black women at the nail and hair salon than you will at the library, health food store, or even masseuse. I included masseuse because many of us need to get regular tension releases and get our bodies to release toxins. This goes along with working on the inside, hence library (mind), health food store (body), and masseuse (soul, spirit, body). Black folks like to work on the outside with our nails, hair and clothing.

    Just backwards. <_< But then again America is counting on our ignorance and consumerist ways to fuel the economy and help pay for this stupid war. :Angry:

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    Member
     
     

    I find that article a little disturbing on just how much we truly spend in America. I am not really surprised but seeing the actual numbers is outrageous. We have to learn how to save and invest our money for generations. Majority culture have old and new money in families. We have to work on not only being rich but being wealthy for our future.

    Peace,
    Rasta

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    Member
     

    I'm so tired of hearing blacks do this and blacks do that. I understand the need for it on one hand, but on the other hand I feel like this keeps the divide between black and white Americans. Sometimes I wonder if it's the blacks in lower income brackets who spend this way, if so are there similarities in the spending of blacks and whites in the same income brackets? There still may be differences but I hope there would be less of a disparity.

    Now that the problem has been stated who is going to do what about it? I was very happy to see that Russell Simons invited Suze Orman to speak at his Hip Hop Summit.

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    Member
     

    Now that the problem has been stated who is going...

    I feel you on this one Surgeon. I also think it's good to be aware of what area's we need to make improvements in but to continue to read mostly negative things about your people get's old and maybe possibly counterproductive. I just want to read a headline for once that say's we've done something good. Someone started a thread about what YOU can do to make changes in your community. I'm going to go back and read that!

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    Member
     
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