African American Spending Study...Tell these people to get a Life!!!!!

Next time you see that 'player of the year' flawsin' in that 2008 Chrysler 300 sittin' on 26's while he's pulling it into a parking stall of a rented apartment hand him this article.

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 clothe s, $3.2 billion ($3,200,000,000.00) on electronics and $11.6 billion (11,600,000,000.00) 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 , 80% black, is the world's No.1 market for Cognac (Pass the Courvoisier). Detroit is also the number one crime city of America .

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 $303 million 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, if you're led to do so, please pass this on. Knowledge is POWER!

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I totally agree with everyone that says, if you are taking care of your’s, than who cares what you spend your money on, but we must draw the line and show our children that flashy cars and the latest fashions are a necessity.

Growing up, I was raised in the Goodwill, and on clearance racks. When we went shopping we looked for items that looked good and were classic styles. Kids today buy a shirt and 2 months later are like, “eh, that’s not in style anymore, I need something new”. When we go sneakers, we got the name brands, but there was no way my dad was going to spend $150 for a brand new pair of J’s… are you kidding me, he would say and rant about how he would get his sneakers from the grocery store. When my parent’s got a new car, they didn’t get the Cadillac’s and Mercedes Benz’s but they got a car that, as my mom would say, “takes you from point a to point b and back again. Growing up this way helped me to see that all that other stuff is just for show.

Living the way I did growing up helped me to “learn” how to prioritize my cash flow. I wouldn’t spend my money on something that I would wear once or twice. And I hardly ever buy anything at the full retail price. As a single mother for a long time, I had to watch how I spent my money on everything. I was always “too rich” to be eligible for Food Stamps, Medicaid and other government assistance.

Now who we need to start worrying about are those folks who are taking our hard earned tax money.
- How many times have you walked into the grocery store with your coupons and sale ads? You walk through the aisles trying to scrimp and save anyway you can, picking up and comparing “no name brands” to the popular brand because you only have $100 to buy food for the next couple of weeks. How many times have you checked out behind someone with that magical green card (in our state the food stamp card)? You in a long line with quite a few people but you happen to notice the items in their cart in most cases, carts (I’ve seen as many as 3 carts!). They have all name brand foods and great (expensive) cuts of meat, lots of soda and snacks, but no fruit or vegetables…..

- What about those folks in the clothing store. You walk in browsing the sale and clearance racks, because you need a new pair of work pants. Did you ever notice that some stores take the welfare card there too?? That’s called cash assistance. Did you ever wonder if those people using the card are browsing the sale and clearance racks like yourself?

- How many times have you been on the hunt for a nice apartment in a decent neighborhood, only to find out that you were a good candidate for the place until someone (with section 8) applied. Landlords want the folks on Section 8 because they can charge an exorbitant fee for rent and the government will pay the $800 in rent for a place worth $550.

I am not saying all the people who use the government funding are NOT in need of some help, but there are many who aren’t. A lot of the folks using this system are working it for all they can get (all races, Blacks, Whites and Latinos). They get work place training, for free; they have an unfair advantage over you in some jobs (oh I have been there) and let’s not forget housing. They would rather sit and collect. They have worked the system so long that they know who to continue getting this assistance. As someone who struggled for so long, I get pissed off very easily when I see this. These people are dressing better than we are, they are definitely eating better than we are, and we are paying for them to have more than we have. Something is not right there.

Just my 2 cents....
I absolutely agree! I never thought about it that way...


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