WHAT ARE THE CONSEQUENCES OF BUYING POWER FOR AFRICAN AMERICANS

An increase in employment for African Americans from 1996-2007 boosted african american spending. Access to credit and credit cards has also contributed to the buying power of African Americans. The finacial times mentioned an average american adult carried over 8 credit cards with african americans carrying at least 6 credit cards on an average.

According to Target market report a report that tracks black consuming spending mentioned that blacks spend a significant amount of their income on depreciable products, in 2002 blacks spent over $22.9 billion dollars on clothes, $3.2 billion on electronincs and $11.6 billion on furniture that was got off credit.

Among other favorite purchases for African Americans were cars, rims and liquor. Blacks make up 12% of the U.S population according to the target market report blacks were the biggest consumers of scotch at 30% in the country. Ford motors the maker of Lincoln commissioned Sean P Diddy combs to design a Limited Edition Lincoln Navigator which was accesorised with 24 in chrome rims, four 16 inch subwoofers, 6 splasma screen TVs, 2 DVD players and a Sony Playstation. That deal fenched ford Motors $46.7 billion dollars on the cars purchased by blacks.