Insights into how Black consumer spending shapes the U.S. economy and opportunities for businesses.

Articulated Insight – “News, Race and Culture in the Information Age”

Black Americans have $1.8 trillion in annual spending power, making them one of the most influential consumer groups in the U.S. Yet, despite this immense economic clout, Black dollars do not cycle within the community as they do in other ethnic groups. According to a Nielsen report, African Americans are 21% more likely than the general population to influence mainstream culture and trends, but Black-owned businesses struggle to capture this vast spending potential.
Where the Money Goes
• Beauty and Personal Care: Black consumers spend $1.1 billion annually, yet a tiny fraction goes to Black-owned brands.
• Apparel: Spending on apparel exceeds $29 billion, with large corporate brands capturing the majority of the market.
• Technology and Media: Significant dollars flow toward streaming services, smartphones, and technology, but few Black-owned tech companies benefit.
Despite spending heavily across industries, less than 2% of Black consumer dollars are spent with Black-owned businesses. This limited retention of wealth is a major reason the Black community struggles to close the racial wealth gap, where the median wealth of white families is more than 10 times that of Black families.
Why Black Consumers Don’t Spend More with Black-Owned Businesses
1. Historical Impact of Slavery and Systemic Racism:
The long-lasting effects of slavery and economic disenfranchisement have deeply shaped the Black community’s financial infrastructure. After centuries of uncompensated labor, Black Americans were systematically locked out of wealth-building opportunities through discriminatory practices like redlining, exclusion from the GI Bill, and segregation.
These historical events also laid the groundwork for distrust within the Black community regarding its own economic institutions. The destruction of Black economic hubs like Tulsa’s Black Wall Street in 1921 sent a lasting message that Black prosperity was not safe in America. This trauma, coupled with systemic racism, created long-standing barriers to economic independence.
2. Perceived Lack of Quality, Price Competitiveness, and Convenience:
Due to systemic financial exclusion, many Black businesses operate with fewer resources, limiting their ability to offer competitive pricing, technology, and supply chain advantages that larger corporations enjoy. Black consumers, like others, often prioritize convenience and price, choosing major chains over smaller, local Black-owned businesses.
3. Limited Visibility and Access:
Black-owned businesses face challenges in gaining the visibility necessary to attract Black consumers. Many rely on word of mouth or social media, which can limit their reach. Large corporate marketing budgets overshadow small businesses, making it harder for Black consumers to discover or access Black-owned alternatives.
4. Economic and Cultural Conditioning:
Centuries of slavery and exclusion have conditioned the Black community to rely on external institutions for survival. From job opportunities to consumer choices, Black Americans were funneled into systems that excluded or marginalized their own. As a result, many Black consumers have been unconsciously trained to trust white-owned or mainstream businesses over their own community’s offerings.
Comparative Look at Other Communities
• Asian-American Community: The dollar circulates for 28 days in this community, with a strong emphasis on supporting family and locally owned businesses.
• Jewish Community: Money stays within this community for 20 days, where cooperative economics and supporting Jewish-owned businesses are ingrained cultural practices.
• Black Community: Shockingly, the Black dollar leaves the community after just 6 hours. This indicates a lack of community-based economic infrastructure and a gap in the support for Black-owned businesses.
Historical Context: How Slavery Shaped Black Consumerism
The legacy of slavery cannot be separated from current Black spending patterns. For over 250 years, Black labor was exploited without pay, and post-slavery, Black Americans were systemically blocked from wealth accumulation. After emancipation, Black Americans faced racial terror and economic sabotage, such as the violent destruction of successful Black towns like Rosewood, Florida and Tulsa, Oklahoma. These acts of violence signaled to Black entrepreneurs that their success could be met with catastrophic consequences.
Additionally, Jim Crow laws, segregation, and redlining kept Black Americans out of the economic mainstream. By the time they were allowed access, white-owned corporations had already established dominance in nearly every sector. This long history of exclusion, fear, and systemic barriers to business ownership has played a major role in the current distrust many Black consumers have toward Black-owned businesses.
How the Black Spending Habits Differ from Other Groups
Unlike other ethnic groups, where spending often reinforces the economic strength of their community, Black consumers have been conditioned to spend outside their community. Historical factors, lack of trust in Black institutions, and systemic exclusion from wealth-building tools have contributed to this spending behavior.
For instance:
• Asian and Jewish Communities: Spend and reinvest in their communities to ensure collective economic growth.
• Black Community: Historically prevented from building economic ecosystems and cultural traditions around collective financial support, leading to money quickly flowing out of the community.
Voter Wallet: The Conscious Spending Solution
The Voter Wallet, part of the broader FotM Global initiative, offers a powerful antidote to these challenges by empowering Black consumers to make informed decisions about where they spend their money. Voter Wallet educates consumers on how their dollars can serve as a vote for economic justice—encouraging Black and ally consumers to prioritize businesses that align with their community’s values.
This digital tool connects consumers with Black-owned and “corporate friends” businesses that are committed to supporting Black economic empowerment. Even if there are limited services in certain areas, the Voter Wallet ensures that every dollar is consciously spent with businesses that reinvest in the community. This shifts the focus from convenience and price to the long-term impact on Black economic sustainability.
Through the Voter Wallet, Black consumers can:
• Track their spending with businesses that contribute to the community.
• Support allies and corporate partners who actively engage in racial and economic justice.
• Ensure that every dollar, every day, every time, has an impact on Black communities, creating a sustainable ecosystem for wealth creation.
Solutions to Black Consumer Spending Challenges
1. Education through Conscious Spending Movements:
Campaigns like Our Money United are at the forefront of educating Black consumers about the power of their collective spending. These movements focus on teaching consumers that each dollar spent is a vote—supporting businesses that either uplift or undermine their community. Our Money United highlights the importance of intentional, community-focused spending, encouraging consumers to prioritize Black-owned businesses and allies.
2. Visibility and Accessibility:
Platforms like the Black Wall Street Ticker make Black-owned businesses more visible and accessible to the broader public. By tracking the impact of Black spending in real time, this platform shows consumers and businesses the power of their economic choices.
3. Increased Access to Capital and Resources for Black-Owned Businesses:
Financial programs, like Operation Hope and 1MBB, provide Black entrepreneurs with the resources, training, and capital they need to grow. These initiatives are critical for creating Black businesses that can compete with larger corporations, offering competitive pricing and quality service.
4. Corporate Accountability and Strategic Partnerships:
By partnering with businesses that align with racial and economic justice values, the Black community can drive systemic change in corporate behavior. Strategic alliances with companies that support Black entrepreneurs and community development are key to creating a lasting economic impact.
5. Digital Tools for Collective Spending:
Tools like the Voter Wallet and Black Wall Street Ticker empower consumers to make more informed decisions about where they spend their money. These tools promote businesses that support economic justice and allow consumers to track their collective impact.
The Importance of the Our Money United Campaign
Our Money United represents a pivotal educational initiative aimed at transforming the way Black consumers approach spending. Backed by leaders like FotM Global and Operation Hope, the campaign teaches Black consumers how their spending decisions directly affect the wealth and well-being of their communities. The campaign also highlights the importance of corporate accountability, using the Black Wall Street Ticker and Voter Wallet to track and report spending in real time.
Why Our Money United Matters:
• It encourages consumers to vote with their dollars: By supporting businesses that align with community values, Black consumers help build a stronger, more resilient economic base.
• It fosters collective economic action: Our Money United leverages the power of mass participation, ensuring that even small actions contribute to large-scale change.
• It prioritizes corporate accountability: By rewarding businesses that support racial and economic justice, the campaign sets a new standard for corporate responsibility.
Summarized Solutions and Impact
In conclusion, the Black community’s economic challenges are rooted in historical exclusion and systemic racism, but the solutions lie in conscious spending, education, and collective action. Voter Wallet, the Black Wall Street Ticker, and the Our Money United campaign provide the tools to ensure that every dollar spent has a lasting impact.
By embracing these solutions, the Black community can:
• Retain more wealth within the community.
• Build stronger businesses that can compete globally.
• Create a lasting economic legacy that closes the racial wealth gap.
Every dollar, every day, every time a Black consumer makes a purchase, they have the power to transform their community’s economic future.
About Dr. Charles “Champ” Walker

Dr. Charles “Champ” Walker Jr. is the founder and chair of Friends of the Movement (FotM) Global, a social data company dedicated to empowering consumers through conscious consumption. Under his leadership, FotM Global has developed pioneering platforms like the **Black Wall Street Ticker**, which tracks and reports Black consumer and ally spending around the clock, and the **Voter Wallet**, which encourages dual voting—at the ballot box and with consumer spending. These tools are central to the **Our Money United** campaign, aimed at bridging the wealth gap and fostering generational wealth within Black communities.
In addition to his work with FotM Global, Dr. Walker is the managing member of Greenhood Industries, LLC, a waste-to-energy firm, and CEO of Bright Ideas Consulting, Inc., where he has secured over $1 billion in contracts for corporate clients. His career spans multiple industries, including staffing, wastewater, and venture investing, and he has a strong track record of driving growth and innovation.
Dr. Walker’s advocacy for green contracting led to his involvement in the signing of a key executive order under President Obama, promoting eco-friendly procurement practices. He also created Heritage, the first African American Crest, which has been recognized by the Smithsonian Anacostia Museum.
His commitment to economic justice and empowerment is reflected in his service on numerous civil rights advisory boards and his continued focus on diversity and inclusion. Dr. Walker’s work with FotM Global and other ventures positions him as a transformative leader in the fight for economic equity.
Dr. Charles Walker Jr.
FotM Global Inc.
Founder, Chairman, & CEO
Dr. Charles Walker Jr.
FotM Global Inc.
Founder, Chairman, & CEO
Keywords: Black consumer spending, Economic impact, Marketing strategy, Purchasing power, Minority market