Why Black Buying Power Doesn't Translate To Wealth

Discussion in 'IntroSpectrum' started by Crates, Jan 31, 2011.

Thread Status:
Not open for further replies.
  1. Crates

    Crates Well-Known Member

    Joined:
    Apr 2, 2007
    Messages:
    1,798
    No Parallels Between Buying Power And Wealth
    Blacks have more money available but should save, not spend



    Article written by Tamara E. Holmes.


    Black buying power rose to $723 billion, up from $585 billion in 2000, according to The Multicultural Economy 2004, a report by The Selig Center for Economic Growth. The report defines buying power as the total personal income available to individuals after taxes, for spending on goods and services. By 2009, the report projects that blacks will have $965 billion in buying power, up 203% since 1990.

    In comparison, Asians and American Indians will have $528 billion and $66 billion in buying power in 2009, up 347% and 240%, respectively. Hispanics are expected to increase their buying power by 347.1% to $992 billion, becoming second to whites. Hispanics are not a race but rather an ethnic group and are represented in the data separately for that reason. According to the U.S. Census, 47.9% of Hispanics consider themselves to be white, 2% consider themselves black, 1.2% identify as American Indian, 0.3% as Asian, and 48.6% consider themselves to be other or of mixed race.

    "If the African American market is getting bigger, then there are opportunities for people in the community to start or grow their businesses if they feel that they would be well positioned or better positioned than others to sell to this market," says Margaret C. Simms, vice president of governance and economic affairs for the Joint Center for Political and Economic Studies.

    The report found that blacks spend more money on telephone services, shoes, personal care products, and children's apparel and less on healthcare, reading materials, entertainment, and household textiles, compared to other groups.

    Although buying power is increasing in the African American community, experts say consumers should not mistake that statistic for a sign that the community is becoming wealthier.

    "Those who are not familiar with these definitions look at the increase in income and they say 'Well, the African American community is wealthier,'"says Bernard E. Anderson, professor of management at the Wharton School of the University of Pennsylvania. "It doesn't mean that at all. In fact, to the extent that African Americans spend more of their increased income rather than save and invest it, in many cases, their wealth might even decline in light of the increase in their income."

    "The African American community historically has spent more than it has held," says Cheryl Hill Lee, a research analyst for the National Urban League Institute for Opportunity and Equality. "What needs to change is that African American wealth figures need to go up.
    test
  2. Crates

    Crates Well-Known Member

    Joined:
    Apr 2, 2007
    Messages:
    1,798
    With Blacks having close to a trillion dollars now in spending power there is a lot of money available for saving and investing which will lead to more wealth for Blacks. I think we need more organizations and Black media outlets promoting financial literacy aimed at Blacks. If we can spend a $100 plus dollars on Air Jordans and find money for car rims then we should be able to find some money for investing.
    test
  3. Your Idol

    Your Idol ♠♠♠♠♠♠♠♠♠♠

    Joined:
    May 5, 2001
    Messages:
    12,045
    Because rims and all 30 pairs of AF1s only depreciate in value.
    test
  4. Noncentz

    Noncentz Sieg Heil, M'fer!

    Joined:
    Oct 13, 2004
    Messages:
    6,044
    "Multicultural Economy 2004"

    Wtf? They're talking about Americans with different racial backgrounds, they're all from the same culture -> American.

    The word 'Multicultural' should be fucking banned.
    test
  5. Noncentz

    Noncentz Sieg Heil, M'fer!

    Joined:
    Oct 13, 2004
    Messages:
    6,044
    I've been investing for years brah, but I don't wanna do it with you.

    The whole 'we're a team' bullshit is the reason so many blacks are poor. Individuality is what needs to be promoted.
    test
  6. Noncentz

    Noncentz Sieg Heil, M'fer!

    Joined:
    Oct 13, 2004
    Messages:
    6,044
    Oh and stop taking rap music so seriously...

    Every rap song like 'Blowing money fast' helps make another dude poor.
    test
  7. Radium

    Radium f k

    Joined:
    Mar 4, 2008
    Messages:
    5,535
    yes i think this actually is the biggest problem blacks have today in america. there are many other things really wrong with black american culture, but this is one of the things, that if resolved successfully, can really start to turn things around.

    i think the black community must adopt an asian immigrant family model. essentially, two parents have kids with the intention that everyone in the family will live together and work and save money towards a single combined savings account for x amount of years.

    with just a few extra years of executing this family model, they together can generate a few extra hundred thousand in combined savings depending on how many children they have working. hence the reason why asians like having large families; they view the concept of family as a life long team effort where everyone works together towards a common goal instead of towards individual goals. this is the main reason why the chinese, for example, can be successful wherever they immigrate to in the world. in indonesia for example the chinese are generally despised because they have outpreformed the locals to the point that they now own nearly everything. in america, a similar thing has happened in largely black urban areas, to the extent that chinese own most of the laundromats and liquor stores in the area despite being outnumbered by far by black people. in africa, there is a growing racist tension towards the chinese who are expanding out into the continent. the reasons for this are exactly the same as they are in indonesia. the chinese specifically tend to outpreform anyone wherever they immigrate to in the world. i believe this is a product of their inherently collectivist styled society and culture - in sharp contrast to the society and culture of western society (white society) ie highly individualistic and self-concerned.

    this must be considered with more depth by the black community. instead of following a more collectivist asian family model, the black community is following an individualistic western (white) family model but without any of the things that the whites actually have eg generational wealth.

    instead of leading towards successful "team effort" styled families (like the chinese) its leading towards highly individualistic people who only live for themselves and for the moment, instead of for their family and for the future.
    test
  8. Crates

    Crates Well-Known Member

    Joined:
    Apr 2, 2007
    Messages:
    1,798
    Not sure what type of investing you're thinking of but there are various ways to invest money.
    test
  9. Crates

    Crates Well-Known Member

    Joined:
    Apr 2, 2007
    Messages:
    1,798
    As far as Black-Americans adopting other people's models I think one thing more could try is the pooled savings method used not only by many Asians but is also common with Caribbean blacks. It's called susu loans. This approach to saving money could be used by many Black-Americans as a way to get the money to start businesses,buy homes and for various other things. I'd like to see this method being taught in Black colleges and through Black media outlets.


    Here's a good article on it for anyone interested:


    Franchise Profile - Jamaican Entrepreneurs - Entrepreneur.com
    test
  10. Radium

    Radium f k

    Joined:
    Mar 4, 2008
    Messages:
    5,535
    thats dope thanks for the link

    one thing i think that is really important is home ownership. the more black home owners the better because it allows the family to save money via the decreased monthly strain of home owner expenses (property tax, insurance) vs monthly rent which is extremely expensive in most places. so that gives them money to use for other things like school for their kids, investments, or the acquisition of assets. the house can then be passed on to the children when the parents pass on giving them a big boost too in the future.

    home ownership is extremely important in creating generational wealth. it would be good to create a grass roots movement promoting susu loans and also the planning in general for home ownership in the black community.
    test
  11. Rasnegas

    Rasnegas New Member

    Joined:
    Feb 7, 2011
    Messages:
    3
    Buying black does not translate into wealth but supporting a business like this African American Book store helps.
    test
  12. Bar nigga

    Bar nigga 314 STL Ancient of daze..

    Joined:
    Jan 26, 2009
    Messages:
    2,463
    i think DWB plays a major part in this crisis...
    test
Thread Status:
Not open for further replies.

Share This Page

Users Viewing Thread (Users: 0, Guests: 0)