Saint Augustine’s College
Professor Angela Law
Many people say that African Americans spend their money on the wrong things. African Americans don’t make smart choices when it comes to buying fancy cars over a house. The Black consume does so much for the world, in so many ways. The Black consumer has huge impact on the marketing industry around the world. Nearly one out of every seven babies born in the United States is African. 71 African American babies enter the world's population every hour. This equals up to 1,702 African American babies born daily totaling to about 623,029 babies every year (US Census).
In 2008 Humphrey provided data that predicted that the nations Black population would grow almost 34 percent by 2011, while the Whites population would only grow about only 18.5 percent. The total African American population now is 42.6 million, about 14,468,417 households. As of right now cities with a large proportion of African Americans are New York City with a population of 3.2 million African Americans, Los Angeles, Chicago, Philadelphia, Memphis, Detroit and Houston. Buying power is the total personal income an individual has available after taxes for spending. In 2008 it was predicted that by 2011 that the U.S buying power will rise to 1.1 trillion. Buying power is not the measurement of wealth. If African-Americans were a country, and they would be the 16th largest country in the world. because they have a buying power of nearly $1.1 trillion annually.
Blacks spend more than whites that have the same income on visible goods. Visible goods are cars clothes and jewelry. . For every $1.00 in Black wealth, Whites now have $20.00. Out of $836 Billion in total earning power, only $321 million spent on books while $7.4 billion spent on hair and personal care products and services.
Black Buying power increases the number of blacks starting there on business. From 1997 to 2002 Black-owned businesses increased 45 percent Black buying power rose from $318 billion in 1990, to $590 billion in 2000, then to $799 billion in 2008. "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. 79% of whites invest in the stock market, only 61% of African-Americans do. Higher rates of unemployment equals less income. Less income and credit discrimination are financial problems to the blacks. Blacks spent large amounts of the income on natural gas, electricity, telephone services, footwear, groceries, housing, and women’s clothing. In 2008 Black consumer’s accounted for almost nine cents of out ever U.S dollar spent.
Social influence and household income impact a community economic power. From 2000 to 2009 African Americans that had households of $75,000 or higher grew by almost 64%. In 2008 black African Americans spent 435 billion, from that one year the amount of Blacks household money spent spent increased 16.6%. African-Americans total income earned was estimated at $836 billion dollars in 2009, and in that year black households spent an estimate of $507 billion dollars in 27 different product and services categories. The source that I am using in my Undergraduate research project "The Buying Power of Black America" is one of the nation's most quoted sources of information on African-American consumer spending. It is used by hundreds of Fortune 1000 corporations, leading advertising agencies, major media companies and research firms. (Target Market News). Black Buying power increases the number of blacks starting there on business. African