Jazzmyn Sims

March 11th, 2019

African American Literature 3B

HOW ARE WE SPENDING 1.2 TRILLION DOLLARS ANNUALLY?

Capitalism is an economic, social and political system based on three things: working for

a wage, private ownership or control over the production such as factories, machinery, offices,

and production for exchange, profit and distribution.

The term ‘Buying Black Power’ might have been commonly usage by Malcolm X

(A human rights activist who was a popular during the civil rights movement). He viewed

the usage of 'Negro' as a derogatory and degrading word (which was mainly used by

Europeans.) Stokely Carmichael, a black political activist in the 1960s. He first used the

term 'black power' in disobedience to white people as to white people interpreting the

term as something violent and dangerous.

Black Past mentioned that during the year 2013, African American consumer

market exceeded the trillion dollar mark for the first time. In 2017, the black buying

power market has reached 1.2 trillion. This means Black people as a collective spent

1.2 trillion dollars. Black Buying Power has been increasing since 2000, in fact it has

increased by 86 percent. Black Entrepreneur believes that the increase in Black-owned

businesses and the increase in higher education in the African American population is

the cause of this number. African Americans only make up 14 percent of the nation’s

population, so how are we spending 1.2 trillion dollars, with an unemployment rate at

6.6 percent? We aren’t getting a white-collar jobs, and 52 percent of Black people are
women, They are among the poorest races, with 27.5 percent of them living in poverty

and due to the Gender Pay gap. The gender pay gap is the average difference between

the amount of money being paid to a man and woman working. Women are generally

paid less than men. Which causes the issue and the gap.

One hundred years ago, African Americans were not perceived to be capable of

working successfully in the consumer market category. There were socially, economically,

and politically, recognizably different reasons for this situation. The vast majority of black

people, at the time, lived in the South isolated major cities (economic markets).

Money can sometimes buy happiness, If you spend it the right way. There is a

correlation between income and happiness. When people buy their loved ones gift for

special occasions such as their birthday, Christmas, or a wedding gift; it brings

happiness to all around. Although when you're 8 years old and you do chores to get

paid buying toys and candy can also bring happiness.Can money buy happiness?

Absolutely.

It seems that Black people are enslaving themselves into materialism. Buying

name brand cars, shoes, or clothing are all unnecessary items that Black people spend

millions on. Is this the definition of success? Why are we so interested in flashing? This

is particular to Black community because when you grow up in poverty, it feels good to

buy what you want. Investing into materialism is perpetuated by Black celebrities. In

2009 Drake released a song with Trey Songz well known as Successful:

I want the money, money and the cars

Cars and the clothes, the h*es, I suppose

 I just wanna be, I just wanna be successful

Everyone has different perspectives of what success is and what to means to them.

Having money, having name brand clothing, the fancy cars and shoes, and having sex

with a lot of people is one hip hop trope that may define success to some.

Black people should spend less money on unnecessary things and spend more

on saving and investing. invest into future and not wasting money on unnecessary

items. Saving and Investing maybe difficult for Black people because don’t anyone to

lead by example. were never taught these life skills such as building our credit, how to

survive after leaving parents’ house, or having dreams or advance education after High

School in College.

According to Asian communities, generally keep a dollar for 28 days before

spending it. That number is 21 days in the Jewish community and 23 days in the white

community. In the Black community, for the number is only 6 hours. This brings up the

question why do Black people spend their money fast? What’s the rush? Matthew

Corbin author of the article 5 Reasons Why Black People Are Still Broke:

1) Black people spend more money than they make.

2) Black people don't save their money.

3) Black people don't know how to invest.

4) Black people aren't working toward getting out of poverty.

Jay-Z says …
“You wanna know what's more important than throwin' away money at a strip club?

Credit. ...Financial freedom my only hope. F*ck livin' rich and dyin' broke….. I can't wait

to give this sh*t to my children. Y'all think it's bougie, I'm like, it's fine. But I'm tryin' to

give you a million dollars worth of game for nine ninety-nine….Y'all on the 'gram holdin'

money to your ear. There's a disconnect, we don't call that money over here, yeah.”

Jay-Z had a message for the Black people. Spend your money wisely. At first he

didn’t know that but now looking back he should of invested his money instead of

buying luxurious things. People who are fortunate should invest into their family,

children, and even into the Black community.

5) Black people don't support black businesses.

African American buying power is at 1.2 Trillion, yet only 2 cents of every dollar a

Black person spends goes to black owned businesses. Every other race with the

exception of black people seems to support the businesses of their own. Black people

buy products from brands such as Jordan, Louis Vuitton, and Ralph Lauren at a higher

rate.

The prices of these brands are very expensive; however, those same black people

would cringe at the thought of paying $20 for a black-owned clothing product saying,

"It's too expensive." Is it too expensive or is the brand not popular enough?

For many years, black activists have looked at America’s financial economic

system. They’ve promoted self-sufficiency which is the creation of black wealth through

black-owned businesses. This topic has a repetition with the dialogue. For example, in
Jay-Z’s song “The Story of O.J.”: Black Americans should use their economic power to

support their own community, instead of participating in the discriminatory system.