Research On Blacks Spending Habits On Expensive Goods
Why would otherwise-similar black and white households have different incentives to signal their wealth? Charles, Hurst, and Roussanov argue that it’s because blacks and whites are seeking status in different communities. In the racially divided society we live in, whites are trying to impress other whites, and blacks are trying to impress other blacks. But because poor blacks are more likely to live among other poor blacks than poor whites are to live among other poor whites, poor black families are more susceptible to being pulled into a signaling game with their neighbors.
Once these effects are accounted for, racial disparities in visible consumption disappear. It’s not that black Americans are more inclined to signal wealth; rather, poor blacks are more likely than poor whites to be a part of communities where they are relatively rich enough to participate in the signaling game.
Well expensive sneakers, clothes and jewelry are used to stand out from everyone else. No one wants to be normal and just average, so these objects of desire are used to boost your confidence and status. You will see these the most in poor neighborhoods because people feel a stronger need to show they have money, even if they really don’t.
Suggestion Box
January 11th, 2008 at 3:39 pm
UNO!!!!!
January 11th, 2008 at 3:42 pm
i think We’re missing the point of what Bill Cosby is trying to say. Rather not even Bill Cosby, you ask any person who grew up in the 50’s and the 60’s their answer about buying expensive things would be the same.
Even myself, which i work for a CEO in who used to own a 100 Million company and he’s told me from time to time, like ” wow, man you spend allot on clothes.”
We as black people are fixated on this stuff because we are brought up that way and we do need to change.
January 11th, 2008 at 4:00 pm
it is the truth. if you think about it also if you lived in the hood you want to get out and live a nice life in a good neighborhood and drive the fancy car. everything is a desire to impress other people we dont know. think about it guys get the pradas and bapes to impress the women, the women do the same and get there hair and nails done to impress the guy. thats just how it is unless you a hillbille. shit im like that but i know what to do and have a certain limit and i wont buy nothing on credit i rather have some cash in my pocket after i buy than be a broke nigga wit 300 sweaters
January 11th, 2008 at 4:07 pm
realtalk i need u to watch this documentary and feature it , towards the end it takes u into the future plans of america for the people, america is on some other shit
http://zeitgeistmovie.com/
January 11th, 2008 at 4:08 pm
Interesting article. Get ready for a host of uneducated responses
January 11th, 2008 at 4:39 pm
thats kinda true. ppl in the hood be buyin $150 jordans and shit when they can use that money on something more relevant. but i dont blame them.
but damn, livin in america, a land of very materialistic things. its hard to not desire the hot shit out and tryna emulate the ‘good life’.
January 11th, 2008 at 4:41 pm
I think this article does have merit. I like to consider myself the exception to the rule. Back in high school and still now as I’m about to graduate from college..I never had a desire to wear the $120 sneakers or rock the latest. People used to tell me they thought I was poor or at least not as well off when they come to my house and realize I live in an upscale neighborhood. People have to realize yes it does have to do with where you grow up but I think the most important factor is HOW you grow up. If you are taught that “the clothes make the man, instead of the man making the clothes” then of course you will be fixated on material accumulation.
January 11th, 2008 at 5:40 pm
something should be said for young people (not just black) being targets for corporations as well. if you look at some of the clothing and electronics geared towards teens, the prices are out of line with what the average person that age can afford. it starts early and it’s not just aimed at blacks but we are easy lambs to the slaughter so to speak.
January 11th, 2008 at 6:00 pm
lovin the new layout
lol
January 11th, 2008 at 6:06 pm
new look …good look
January 11th, 2008 at 6:07 pm
yoo change the layout or put a option that users can choose their own layout
January 11th, 2008 at 6:12 pm
u can say its material things that everyone spends their money on. its jus different in the view of each eye. everyone buys jordans not jus blacks. not everyone buy the same things. in that aspect if I buy bollo’s is everyone gonna buy bollo’s, no, becuz its supply & demand. its their statistics, we look fly in target & wally world or whateva budget we on. its all a front 2 keep u on ya toes 2 spend all ya money
January 11th, 2008 at 6:41 pm
Good article i dont think that people try to impress others.I think its liek this.
Life is hard man.I mean life can kick you in the ass and throw you over the bridge but buying expensive things is like a way to say that i got up.
i jus think that people work hard and they wanna treat them selves to expensive shit
i think impressing people has nothing to do wit buying things that make you happy
January 11th, 2008 at 6:45 pm
If u cum frm da bottom and all of a sudden u sumbody, U want da finers thangs…2 have a better life and distance urself frm bein’ broke. And buyin’ materials thangz iz how they try 2 do dat. And imma be da same way!!!!LOL
January 11th, 2008 at 6:58 pm
LIKE I SAY
January 11th, 2008 at 7:06 pm
LIKE I SAY AT THE END OF THE DAY MATERIAL ITEMS MEAN NOTHING. I SAY IF YOU HAVE ENOUGH MONEY TO BUY SOME MATERIAL ITEMS THAT MAY BE EXPENSIVE THEN FINE, JUST DON’T PUT TOO MUCH EMPHASIS ON THEM AND DON’T JUDGE PEOPLE BY WHAT THE CAN AND CAN NOT AFFORD. THE DIFFERENCE BETWEEN WHITE PEOPLE AND BLACK PEOPLE BUYING EXPENSIVE SHIT IS THAT BLACK PEOPLE PUT MORE EMPHISIS ON THESE THINGS.
WHEN I GRADUATE FROM COLLEGE AND GET A GOOD JOB I’LL BUY WHATEVER THE FUCK I WANT TO BUY. A HOUSE FIRST, A NICE CAR (BECAUSE I’M INTO CARS, NOT ALWAYS FOR THE LOOK, OR TO IMPRESS PEOPLE BUT FOR THE SPEED/PERFORMANCE/HANDLING ETC) I FUCKS WITH ELECTRONICS. SO I MIGHT BUY A 60 INCH PLASMA OR DLP TV TO WATCH SOME HD SHIT ON MYSELF.
NOT TO IMPRESS ANYONE. BOTTOM LINE IF I WORK HARD I CAN BUY WHATEVER THE HECK I WANT TO BUY AND I BUY SHIT TO IMPRESS MYSELF, NOT PEOPLE. I BUY SHIT BECAUSE I LIKE IT. THERES A DIFFERENC BETWEEN A MAN WHO BUYS EXPENSIVE SHIT, BUT WOULD GIVE IT ALL AWAY AND A MAN WHO LOVES MATERIAL ITEMS MORE THAN HIS FAMILY AND FELLOW FRIENDS ON THIS EARTH.
January 11th, 2008 at 7:47 pm
2008 snd we still talking about race
January 11th, 2008 at 7:57 pm
not to totally change the subject, but has anyone heard the ja rule post on here called “forgive me father”?i read the post and read the comments, and commented on the fact that out of the 60 something comments i think, there was not ONE SINGLE mention of the fact that the song was NOT a “beat” or “lyrics” and ANYTHING HAVING TO DO WITH A RAP SONG? not one person knew that that music was the music to the beatles classic song “elanor rigby”??? ja rule has disgraced music today for attempting to make the beatles classic song into some poor piece of shit disgrace of a song, and you all disgraced yourselves by not knowing what was up with that wack ass shit.
January 11th, 2008 at 8:15 pm
shit is kive truw i dont do it for people i dont know.i do it for bitches i dont know lol everything young men do is for females i get my haircut every week so i stay looking fresh for the bitches i rock ed hardys,blac label,evisu cuz i love wen niggas b like were u get those n bitches b like damn this niggas fresh i understand its my own insecurties but fuk it stayin fresh makes me feel good im young n u only got a small time on this earth specially bein young were u fuk all the bitches u want n wat not till i find my wifey n imk still gonna get fresh just for me p.s i think its more of a hood thing then a black thing cuz im mexican n white i i can honestly say i materlistic as fuk but at the end of the day i know non of this shyt matters i just lost my bitch cuz i was 2 materlistic plus i was cheatin on her but w/e its nothin
January 11th, 2008 at 8:16 pm
not a huge kanye song but ALL FALLS DOWN deals wit all this they talkin bout i felt like the nigga was talkin to me wit that joint lol
January 11th, 2008 at 8:16 pm
this is a good article, the thing is young blacks are soo addicted to material things that getting freash and being fly is the top of their priority instead of education and college books. theres blacks and hispanics at my college campus who always getting dressing up to classes like they’re going to club and worring what to wear for philosophy class, while theres white students who will wear the same jeans and hoodies for a week. the same white students who dont care about clothes are the ones who’s making more money than the minorities whos worrying about clothes after college.
i mean i like to get freash too but i dont make it my main concern, like people rocking pradas, with red monkey jeans and a leather pelle pelle jacket on a rainy sunday morning and syht.
and some people like to buy flashy syht cause they have no game to bagg shorties, so they look to their clothes to bagg shorties for them. i cant count the amount of times i seen this on myspace and on the streets.cats taking pic of their expensice clothes and putting it on myspace.SMH.
minorities need to look at the more important things around them
January 11th, 2008 at 8:17 pm
not a huge kanye fan but the song ALL FALLS DOWN deals wit all this they talkin bout i felt like the nigga was talkin to me wt dat joint lol
January 11th, 2008 at 8:19 pm
As simply stated as possible and I hope its not a repeat but I’m jus typin here:
We all f’ed up! We want to be rich and criminal at the same time. You hear people say all these different things about money how you should look this and that but now in music a nice pair of pants or shoes ain’t enough they gotta be $400 - $1,000 dollars. It’s kinda acceptable if you do buy these things with a plan to get more in return from them but we buy this stuff and its disposible from the jump… plain wasted funds that could go to more pressing issue in or out of your own home… but it is what it is, we all make our choices people jus don’t live with them anymore they run from em! (Excuses Excuses!)
January 11th, 2008 at 8:24 pm
cosign @ numba 5
January 11th, 2008 at 8:44 pm
the same white students who dont care about clothes are the ones who’s making more money than the minorities whos worrying about clothes after college.
^^^^^^^^^^^^^^^^^^^
I agreed with everything you wrote accept the last paragraph which is untrue.. When you go to college getting a good GPA and grades is what is going to get you a high paying job, not the fact that you don’t care about clothes or not. Tell that bull to some of those Asian kids in the bay area who are sneaker heads in college, wearing all that expensive shit and getting a A average in every college class. A lot of those Asian kids are fucking geniuses, and I’ve met a a lot of them who are sneaker and cloth addicts and they getting better grades than the majority of white kids who don’t care about clothes. Like I said If I am at least getting a 3.00 GPA in college I think I can dress however I want and still make as much money as anyone else
Basically I am saying the clothes don’t make the person, the person makes himself, and then chooses whatever clothes.
January 11th, 2008 at 9:05 pm
@ #7 (t-cup) GREAT POINT
where people place there values… so so clothes + DOPE HOUSE vs. Dope clothes + SO SO APT!
@ #8 (ifokust) the issue with that is if the adults weren’t so materialistic and undisciplined the offspring wouldn’t be either. Do you miss what you never had?
@ # 13 (cheezeydodo) I feel you but thats the mentatlity they capitalize on to have us waste. Work hard make money spend it on what… House, clothes (overly expensive vs. sensible) actually thats th eword right there…we’re not sensible with our money!!!
@ #15(stand up) “I BUY SHIT BECAUSE I LIKE IT.” exactly.. not cause you’re tryin to “stunt” on someone or make an impression and you’re not waistin 2 pay checks you ain’t get yet on it!
@ #18 (Blanco Montana) Being honest with yourself is all you can do; Atleast you know whats up!
We all do things for the shine attention but how much are you willin to give up for it? we tend to give it all up for 5-15 minutes of fame.
January 11th, 2008 at 9:23 pm
Yo real talk i hate to get off subject but listen most of ya on this site come from the suburbs and are rich and shitbut take it from me im from marlboroprojects ya dont know where dat is look it up most of the people dat floss in da hood is broke a real nigga dont really give a fuck as long as you got fresh pairs of sneakerz and a cut u good most people floss up cuz it give dem “Swag” and shit but dat dont matter dat swag shit is either in you or it aint real talk if i was hustlin like these niggaz i wouldnt floss 1 bit im jus tryna get caught if i do dat and if anything i ll be hustling to get the fuk outta here i love my hood to death but i want my kids to see a better way den hustling and getting in trouble cuz dats really all there is in da hood
January 11th, 2008 at 9:46 pm
“and i cant even go to the grocery store
witout sum 1’s thats clean
and a shirt wit a team
seems
we living the american dream
the people highest up got the lowest self esteem
the prettiest people do the ugliest things
for the roads to richs and diamond rings
we floss becuz they hate us
shine cuz the debate us
we trying to by back our forty acres
and for that paper look how low we’ll stoop
even if u in a benz
u still a nigga in a coup”
i feel like people feel empty and need to stand out to be noticed. i wanna look good but not on front street like a sore thumb. insecurities is what drives alot of people.
January 11th, 2008 at 10:27 pm
28 thank u for postin the lyrics
January 12th, 2008 at 1:03 am
As far as this article goes, if you got the funds and are financially “blessed” in life where “money ain’t a thing”…Spend your money how you get it…I mean, some people were born into that kind of lifestyle…So why would you downgrade? (stick to what you know)…But, if you struggling and have to decide between rent and Bvlgari handbags…Be logical and pay that rent…Common sense…That’s why niggas credits be f*cked up…prioritize my people…Investments, acquiring good credit and success, first…Material possessions, after…
January 12th, 2008 at 1:57 am
Man when you go through hard times in life you realize that clothes, cars and money don’t mean shit at all. Its the friends, family, health and happiness that matters. I buy things that may be expensive but I always make sure I can afford them and I make sure that I have taken care of all my priorities first. All I know is that I wouldn’t have any problem giving my all material things expensive or not away to help other people out.
January 12th, 2008 at 4:12 am
lol @ Soulja boy gettin damn near double the posts!
January 12th, 2008 at 4:58 am
31 i feel u i just broke up wit my ride or die bich n 1 of the main reasons we broke up was she said i was too materilistic n i was always worried bout money n tyr to get it n got all this shyt wen i was wit her but i didnt relize it didnt mean shyt till i lost her ………..hey u live n u learn
January 12th, 2008 at 7:11 am
EVERYBODY ON HAS GREAT POINTS FROM THEIR OWN PERPECTIVE AND EXPERIENCE. YET, THE CRITICAL MAIN POINT OF THE SITUATION AS WHOLE IS NOT BEEN EXAMINED OR BROUGHT ABOUT ON HERE AND IN UNITED STATES PERIOD.
1) REALTALK IS THE WRONG SITE TO TALK ABOUT HISTORICAL FACTS AND THE TRUTH ABOUT OUR PEOPLE(AFRIKAN), AND OUR CIRCUMSTANCES IN THIS COUNTRY AND IN THE WORLD. REALTALK IS A BIAS SITE WITH BUNCH OF INTERNET GANGSTAS, AND SUBURBANITE FOLKS.WHO WALKS AROUND WITH INDIFFERENT ATTITUDE TOWARDS THE TRUTH AND HISTORICAL FACTS.
2) BLACK FOLKS HAS ALWAYS BEEN CONSUMERS, SINCE WE WERE ENSLAVED AND STILL IS TODAY. IT HAS BEEN THE SAME ISSUE SINCE MARTIN DELANEY AND FREDERICK DOUGLASS SPOKE REGARDING THIS ISSUE IN THE 1800′S. THERE’S REVOLUTIONARIES THAT EXPRESSED SAME CONCERN BEFORE THE 1800′S, FOLKS FROM THE ABOLOTIONIST MOVEMENTS. THEREFORE, THIS IS NOT A NEW ISSUE THAT PLAGUE OUR COMMUNITY. WE’VE BEEN TRYING TO CATCH UP WITH THE JONES’, EVEN THOUGH WE CANT AND NEVER WILL AS LONG AS THIS SYSTEM CONTINUE TO AS IT IS.
3) WE SPENT AN AVERAGE OF $44 BILLION A YEAR FOR THE LAST 5 YEARS ON MATERIALS AND OTHER NON-VALUABLE THINGS. YET, WE DONT HAVE ANY INVESTMENTS NOR WE OWN OUR OWN BUSINESSES. HISTORICALLY, WE HAVE OWNED OUR OWN BUSINESSES LIKE BANKING SYSTEM, OUR OWN WALL STREET IN OKLAHOMA CITY, ETC. HOWEVER, EVERYTIME WE COME UP WITH SOMETHING FOR OUR OWN. THE WEALTHY WHITE ESTABLISHMENT HAVE TERRORIZED OUR COMMUNITY, AND IT IS STILL EVIDENT TODAY. LOOK AT THE INCREASING RATE OF IMPRISONMENT OF OUR BROTHERS AND SISTERS,AND LOW RATE OF RETENTION IN COLLEGES AND UNIVERSITIES. THEN THERE’S DRUGS, POLICE(KKK), IGNORANCE,DISEASES(AIDS-HIV,STD ETC.), HOMOSEXUALITY ETC.
3) JUST BECAUSE WE ARE MORE VISIBLE ON TELEVISION AND THE MEDIA DOESNT SOLVE OUR PROBLEMS. JUST BECAUSE WE HAVE BUNCH OF COONS RUNNING AROUND AND SOME TOKENS DOESNT MEAN THE SYSTEM HAVE CHANGED IN A PROGRESSIVE MANNER. UNTIL WE HEAR SOME SORT OF APOLOGY FROM THE GOVERNMENT, THE 1% WEALTHIEST FAMILY THAT PROFITED FROM SLAVERY AND COLONIALIZATION OF OUR PEOPLE ALL OVER THE WORLD, AND WE LEARN AS A COMMUNITY TO BE ACCOUNTABLE AND RESPOSNIBLE THEN THIS ISSUE WILL CONTINUE.
4) WE NEED TO LEARN TO READ BOOKS AND TO KNOW WHO WE ARE.UNTIL THAT HAPPEND WE WILL ALWAYS BE CONSUMERS, AND WHITE FOLKS THE PRODUCERS.WE HAVE TO UNDERSTAND THAT ALL THIS TRINKETS THAT ARE WAVE IN FRONT OF US TO GET FROM CLOTHES TO CARS ARE JUST TO MAKE US BUSY IN GETTIN THEM, SO WE DONT TAKE THE TIME TO LEARN WHO WE ARE AND TO THINK OF SOLUTIONS TO THE PROBLEMS WE FACE IN A DAILY BASIS.
FINALLY, REALTALK YA’LL NEED SOME REAL AFRIKANS ON HERE TO FACILITATE SOME INTELLIGENT PROGRESSIVE CONVERSATIONS AND FIND SOLUTIONS. HOWEVER, LIKE ANY OTHER SITE AND MEDIA ITS ABOUT PROFIT AND NOT HUMANITY. JUST READ THE UNINTELLIGENT COMMENTS THEY LEAVE EVERYTIME SOMETHING CRITICAL ISSUES LIKE THIS ON HERE.HOWEVER, THEY WILL MAKE SOME INTELLIGENT COMMENTS AND MESSAGES WHEN ITS ABOUT NON-SUBSTANTIAL TOPICS LIKE JAY-Z, KANYE, 50 ETC.
January 12th, 2008 at 7:22 am
ALSO, IT HAS BEEN REPORTED THAT OUR COMMUNITY(AFRIKAN) WILL SPEND AN ALARMING INCREASING RATE BY 2010 TO TUNE OF $1 TRILLION DOLLARS ANNUALLY. GO FIGURE OUT WHERE THE MONEY GOES ——-> WHITE FOLKS.
AND WHITE FOLKS ARE LEAST CONSUMER OF ALL.WHY? BECAUSE THEY ARE ABOUT PROFIT, INVESTMENT, & SAVINGS.SO DONT BE SUPRISE THAT EVEN WITH BARACK OBAMA AS PRESIDENT WE WILL CONTINUE TO BE POOR AND LESS EDUCATED THAN THE REST.
HOWEVER, THERES NEW REVOLUTIONARIES LOOMING IN THE HORIZON EVEN IF OUR NUMBER IS SMALL COMPARE TO NEGROES(IGNORANT BLACK FOLKS).WE WILL PREVAIL!!!!
January 12th, 2008 at 1:21 pm
i used to be the same way until i got to college, but if you can afford to flaunt without having to get your electricity cut off then knock yourself out.
January 12th, 2008 at 9:21 pm
** 25. Stand Up **
im not sure what major they’re in, but i know for my major (broadcasting) GPA dont mean nothing. in my major “hands on experience” is what get u far, thats why people for my major u must take internships. cause u can have a 4.0 GPA and if u dont have hands on experience in the field u wont get a good job. i heve herd top executives from television stations we watch(not BET or MTV)all over the US visit my college and stress the fact that internship are the key to sucess for broadcasting majors.
i dont know what major ur in but GPA might be important, but in my field of studies it means nothing. i remember seeing somebody losing their resume at my job and it had their GPA on it, maybe cause hes a IT major and thats diffrent from what i study.
January 12th, 2008 at 9:46 pm
blanco, i dont mean to hate, but if your bitch was “ride or die” she wouldnt have left, period. ride or die bitches do just that, ride or die. sorry to hear that though.
anyway, like some of you say, if you got it like that to spend, spend it, cant take it with you. i do see alot of people where im from dress first and put everything after that. i mean, i see chicks wit fly ass designer shit while their kids look a damn mess. hair isnt combed, no haircut, no clean clothes. people
but big ups to the moms that keep it fly across the board!! LOL
January 13th, 2008 at 7:26 am
YEH I KNOW BROTHAS WHO WILL SPEND SO MUCH MONEÝ ON CLOTHES AND SNEAKERS YET DON’T KNOW WHO MARCUS GARVEY IS OR ELIJAH MUHAMMAD OR SOULJOURNER TRUTH, COS DEY NEVA READ…ALL DAT MONEY WASTED ON CLOTH AND NOTHING SAVED OR INVESTED….SLAVERY HAS ALOT TO DO WID DIS KIND OF THINKING TOO…WE HAVE BEEN TAUGHT TO CONSUME AND RECEIVE AND NEVA TO PRODUCE OR INVEST….
January 14th, 2008 at 5:10 pm
my pops use 2 say “money iz da root of all evil”
wise talk!
January 14th, 2008 at 11:14 pm
“anyway, like some of you say, if you got it like that to spend, spend it, cant take it with you.”
What happened to leaving some for your kids and /or grand kids?
September 12th, 2008 at 9:50 pm
who ever left the comment below the article is ignorant
September 15th, 2008 at 4:02 pm
As a white guy, let me give you at least my “white guys” perspective on it. Do with it what you will, it’s only my opinion.
It’s harder to buy into the “black folks are poor and disadvantaged” when a lot of the folk you see are rolling in an Escalade with 24″ or walking around in a $400 outfit. Come on. Don’t claim your broke and the system is working against you if you take every paycheck straight to the mall or spend more on a ride than you make in a year. As someone said, Act Your Wage.
my .02.