A study released last week by the Pew Charitable Trusts shows that over a generation African-Americans have a more difficult time maintaining middle class status than other groups.

The study, which began in 1968, tracked the economic status of more than 2,300 Americans, 730 of whom were African-American. Forty-five percent of blacks born to middle-class families in 1968 slid down the socioeconomic ladder. Their median family income was $23,100 compared to an inflation-adjusted $55,600 for their parents in 1968.

Only 16 percent of whites born to middle-class families had lower median incomes than their parents.

For lower-income blacks and whites, this disparity also existed.

The study found that 90 percent of whites born into low-income families now earned more than their parents did. In comparison, 75 percent of blacks surpassed the income levels of their parents.

Researchers don’t have an explanation for why the gap exists. But some economists have speculated the increase in single, mostly female headed households in the black community and the difference in education levels between blacks and whites are two factors.

The spending power of African-Americans will reach an estimated $1.1 trillion dollars by 2011, but currently only 1 percent of U.S. advertising dollars is geared toward attracting black consumers.

But a study released this week by Starcom MediaVest Group is trying to show advertisers the best way to market to African-Americans.

The study’s authors claim that advertisers try to include images of African-Americans in their general marketing, but these images often don’t reflect the true scope of the black experience.  They say advertisers need to become more knowledgeable about the diversity of Black America and the different lifestyles of African-Americans.

Other Info on Black Spending Power:

http://consideroursource.blogspot.com/2007/10/black-spending-usa-today.html

http://electronicvillage.blogspot.com/2007/04/black-spending-power.html?loc=interstitialskip

http://www.blackenterprise.com/cms/exclusivesopen.aspx?id=489

http://www.prweb.com/releases/20061400/5/prweb391555.htm

http://www.blackspendingpower.com/

http://blackademics.org/2006/09/05/hispanic-spending-to-outpace-black-spending-in-2007/

The resurgence of nooses in some cities led one black radio station to urge African-Americans not to spend any money on Nov. 2, the effort is being referred to as ”National Blackout Day.”

Warren Ballantine, a radio host on the Syndication One Radio Network, said he came up with the idea for a “National Blackout Day” because felt the federal government wasn’t addressing what he viewed as numerous hate crimes against African-Americans.

According to an article on Reuters.com, Ballantine told his listeners a “blackout” would spur policy changes: “Until we have federal legislation … regarding these hate crimes, as African-Americans we need to band together to show our economic power by refusing to spend any money from fast-food restaurants to gas.”

 While blacks have almost $800 billion in spending power, some people, like CNN’s Roland Martin, are questioning whether the boycott will have any effect.

“One issue I raised with Ballentine was how do you measure such a protest to show its effectiveness. He said others had raised a similar point, and noted that it’s important to not be discouraged by such talk, but to move people to act…I concur that it’s critical that Americans express their displeasure if they believe the nation is headed in the wrong direction. But to be honest, we have tons of ways of doing that,” Martin said. 

He added that while a one-day protest was good start, it isn’t enough to truly bring about change or incite other people to do so.

“Maybe Ballantine will get people to express their frustration. OK, fine. But that’s just not for me. And it shouldn’t be for you. We have enough Americans mad,” Martin said.

Black men in corporate America say they have to change aspects of their personality to succeed in the business world, according to a recent op-ed column in the Boston Globe.

Ralph C. Martin and Damian Wilmot, two black lawyers in Boston, said black men often feel marginalized in the working world:

“ Many black men have experienced the isolation that comes from working in organizations where there are few people who look like us. The most hospitable organizations recognize that they have to embrace people with approaches, styles, and cultures beyond the norm because they add to the array of learning and problem-solving styles that can be leveraged by the company.”

Martin and Wilmot said mentoring programs are an important way for black men to overcome the isolation they feel in the workplace. Some major companies have already adopted these programs. Showing this kind of initiative ultimately will help companies to thrive, Martin and Wilmot said.

“A company’s ability to foster a workplace that values people of different heritages is reflective of its competencies to understand how traditional perceptions of race and ethnicity influence decisions about who receives opportunity. Ignoring the unconscious influences of these perceptions makes it likely that less visible hindrances - self-identification, stereotyping, and judging people by “traditional” indicators of success - will diminish the chances of nontraditional candidates to be considered for meaningful opportunities. Great leaders understand that these differences, when harnessed, create a total of greater magnitude than any of the individual parts.”

Black men aren’t the only ones altering their personalities in the workplace. A 2004 book by Charisse Jones and Kumea Shorter-Gooden, Ph.D, called “Shifting: The Double Lives of Black Women in America” profiled several women  and discussed the challenges they faced in corporate America. Some women said they felt a need to change their speech and hairstyle, among other things. The book’s authors said many of the women “shift ‘white’ as they head to work in the morning and ‘black’ as they come back home each night.”  

Tonyaa Weathersbees, a newspaper veteran who is African-American, said she has encountered the difficulties of being a minority in a white-dominated field. When interviewing for a reporting job twenty years ago, she was asked by an editor if she’d be difficult and blame racism if she didn’t get to report on the top stories:

“I got the job. But I didn’t get over the experience — because it taught me a lot about what it means to be black in a white-dominated corporate world. What it taught me was that, for the most part, getting in the door, fitting in and moving up means not just showing your skills, but downplaying traits such as outspokenness that would be regarded as natural in white men. It clued me in on the fact that if I spoke up about something, I risked being tainted as being difficult or radical, while white guys would merely be seen as being assertive or aggressive. Showed me that what some employers see as strength in white men, they see as liability in black women.”

Weathersbee has a word of advice for black women who encounter the same thing: ”So now, here’s our new struggle — to make corporations understand that they’ve got to see us as more than just a photo for a brochure, but as a force for change. To commit ourselves to excellence as we confront the hidden biases that exist.”

A survey released on Thursday by investment firms Ariel Mutual Funds and Charles Schwab showed  African-Americans are saving less for retirement than whites, and the discrepancy could seriously affect their ability to support themselves as they get older.

The survey found average savings for an African-American making $50,000 a year was $48,000, compared with $100,000 for whites in the same bracket. Most blacks preferred not to invest in stock but in real estate, figuring the risks outweighed the rewards. 

The survey also found Americans in general aren’t saving as much as they should be, but the differences between the saving practices of blacks and whites are so stark that John Rogers, founder of Ariel Capital Management, told Chicago Tribune columnist Gail MarksJarvis: “both whites and African-Americans are failing to save enough, but if Americans have a cold, African-Americans have pneumonia. “

Some key findings of the Ariel-Schwab Black Investor Survey: