Annual Edition 'Buying Power of
Black America' report breaks down billions in expenditures Black
consumers are responding to tighter economic condition by focusing more of
their spending on items and services that improve their homes and
lifestyle. That's one of the trends revealed in the 15th annual report,
"The Buying Power of Black America," published by Target Market News. The
report analyzes spending for black households in 2008 and finds that
Story continued... _________________
2010 by Target Market News Inc. All rights reserved
228 S. Wabash Ave.
Chicago, IL 60604
Study: Blacks are far more upbeat about economy improving than whites
By Floyd Norris
The N.Y. Times (July 2, 2010) The Great Recession hit American blacks harder than
it did whites. Blacks were more likely to lose their jobs, and those who
kept them were more likely to have their pay or hours reduced. Black
homeowners are also far more likely than whites to own homes that are no
longer worth what they owe on the mortgage.
And yet blacks are far more upbeat about the economy than whites. They
are more likely to view economic conditions as good now, and more likely
to think that improvement is on the horizon.
The Pew Research Center this week released a report, "How the Great
Recession Has Changed Life in America," based largely on polling data.
It found that few Americans said they believed the recession had ended,
although a much larger proportion said they thought the economy was
starting to recover.
A slight majority of blacks -- 53 percent -- say they believe the
economy is at least starting to recover, while just 40 percent of whites
The Pew study explains the "seemingly counterintuitive patterns" by
pointing to the 2008 election of Barack Obama as president. That
"appears to have put his most enthusiastic supporters, -- especially
blacks, Democrats and young adults -- in a more positive frame of mind
about many aspects of national life, including their perceptions of
The increasing partisanship of American life is also reflected in the
numbers. During the administration of Bill Clinton in the 1990s,
Democrats and Republicans had similar views of how the economy was
doing, Pew reported. But during the administration of George W. Bush,
Republicans tended to see the economy in a much more favorable light.
Now it is the Democrats whose lenses are more rose-colored.
The accompanying charts show the perceptions of blacks and whites about
how the economy was doing from 2004 through May of this year. The
proportion of whites who see the economy as good or excellent -- as
opposed to poor or only fair -- has risen to 13 percent from a low of 3
percent in early 2009. But 25 percent of blacks see the economy as good
or excellent, the highest figure since 2006, well before the recession
The job figures for June, released Friday, showed an unemployment rate
of 8.6 percent for whites and 15.4 percent for blacks. The chart shows
the 6.8 percentage point difference between the two figures. That is
down from a peak of 7.8 percentage points in January, but is far above
the difference when the recession began.
The Pew study reported that 54 percent of employed blacks took a pay
cut, had work hours reduced or were forced to take unpaid leave during
the recession, compared with 37 percent of white workers. Among
homeowners with mortgages, 35 percent of blacks say their homes are
worth less than they owe, about double the 18 percent figure for whites.
Despite such results, blacks see a brighter future than do whites. Asked
if America was still a land of prosperity, 81 percent of blacks said
yes, compared with 59 percent of whites. Blacks are more likely than
whites to think they are better off than their parents, and more likely
to think their children will live better than they do.