If you have hung around Urban Intellectuals for any amount of time, you will understand one of my major gripes with the black community is we don’t understand community economics. However, this article I was reading today let me know, we don’t even understand or respect basic personal finance…..or just don’t give a damn. It has to be one or the other.

Did you know, if the Black community in America was an independent country, we would be ranked 11th in the world according to wealth? Let that settle in for a moment………………………., NUMBER 11 IN THE WORLD!

You would think this puts us in an excellent position, but it hasn’t. Why? Because we consistently squander our money instead of saving, investing, or at the very least spending it in our community with people who look like us and have our best interest at heart.

From The Washington Informer: “There is no way we should have to beg for anything with all of the resources we enjoy,” said journalist, A. Peter Bailey, a Northwest Washington D.C., resident, former Ebony magazine editor, and author of, “Witnessing Brother Malcolm X: The Master Teacher.”

“It’s unthinkable today that we would find ourselves going hat-in-hand to anyone,” said Bailey, 75.

African Americans consistently outpace the total market population in overall growth, smart phone ownership, television viewing and annual shopping trips according to the new study, “Resilient, Receptive and Relevant: The African-American Consumer 2013 Report,” a collaborative effort by the Nielsen Company in New York and the National Newspaper Publishers Association (NNPA), located in Northwest Washington, D.C.

The report, which will be released on Thursday, Sept. 19, reveals that black buying power continues to increase, rising from its current $1 trillion level to a forecasted $1.3 trillion by 2017.

With over $1 Trillion dollars in spending power, we could effectively save ourselves. However, we consistently decide to purchase frivolous items that do nothing to increase in value and not from someone that lives in our community or, again, have our best interest at heart.

Each year, African Americans spend more than $47 billion on Lincoln automobiles, $3.7 billion on alcohol, $2.5 billion on Toyotas, $2 billion on athletic shoes, and $600 million each year on McDonald’s and other fast foods, according to Target Market News Inc., a Chicago-based marketing research group.

Blacks also spend wildly to keep up their appearances.

The black hair care and cosmetics industry counts as a $9 billion a year business, but while African Americans are spending the most, they are profiting the least, said officials from the Black Owned Beauty Supply Association (BOBSA) in Palo Alto, Calif.

The housing market crash destroyed the one bit of savings and assets we did have in the community. But even in the wake of the housing bubble and signs of recovery, all indications point to the black community being the slowest to getting back in the market and not benefiting from the low housing prices.

The inequalities continue when it comes to investing. Studies found we are just not interested in investing in the stock market for retirement, 401k participation is down, and so is regular saving money as well, but we are still loyal to a fault donating to the church. Often donating when we don’t have enough to make ends meet hoping our tithes will make us more favorable to God’s favor.

The loyalty blacks have to their church also has proven costly, said officials at Faith Communities Today, a nonprofit based in Hartford, Conn.

A 2013 study revealed that black churches have collected more than $420 billion in tithes and donations nationwide since 1980, an average of $252 million a week.

“What people fail to see and understand is that, the church pastors aren’t waiting for miracles to fund their lifestyles, they don’t have to pray, day in and day out, to make their ends meet,” said Northwest resident and author, Byron Woulard.

“They are getting rich off God, not from God,” he said.

The black church has made out like fat cats off the backs and pockets of the black community, but the increasing poverty, unemployment rates continue to rise in our communities compared to every one else. It is a wonder someone doesn’t stand up and say, hey, something is wrong with this picture.

The solution to our position in this country is simple and everyone wants to act like it isn’t. We have to stop being so frivolous with our earnings and spend it in our communities with people who live in the community and have our best interest in mind.

Yes, this is easier said than done, but there is effectively no other solution to our problems. We have to ban together and do for self. It is abundantly clear, no one else in this country and world are going to do it for us.

Source: http://washingtoninformer.com/news/2013/sep/18/blacks-have-little-show-hard-earned-dollars/