Blacks and other minorities enjoying greater economic clout in U.S., report finds

The buying power of Blacks and other minorities is growing at a faster rate than that of Whites, making Blacks and fellow minorities greater economic driving forces in the nation, according to a new report based on government data.

The report, released by the Selig Center for Economic Growth in the University of Georgia's Terry College of Business in Atlanta, shows that Blacks, Hispanics, Asian-Americans and Native Americans have made substantial gains in after-tax income due to strong national and regional economies that have benefited most American consumers since 1990.

The study also predicts that this trend of rapid growth in total buying power-personal income available for spending on goods and services after taxes-among Blacks and other minorities will continue over the next five years due to population growth and better employment opportunities.

Jeff Humphreys, Selig Center director and report author, said that in terms of sheer dollar power, the economic clout of the nation's minorities is "formidable."

The fast-paced growth of minority buying power is significant because the market share claimed by a targeted group of consumers affects the costs of providing goods and services. The higher the market share, the lower the cost of reaching a potential buyer in that group, Humphreys said. Seeking better ways to service the market represented by minorities should be a priority for 21st century American business leaders.

Significant report findings include:

* By 2008, the combined buying power of Blacks, Asian-Americans and Native Americans will exceed $1.5 trillion-more than triple the 1990 level of $456 billion-and is projected to account for 14.3 percent of total U.S. buying power.

* New York remains the top-ranked state in terms of total buying power for Blacks (California ranked No. 2.).

* Georgia remains the nation's most attractive Black consumer market. It is the fourth-largest and the sixth-fastest growing. One out of every five consumer dollars spent in Georgia is controlled by Blacks.

* Hispanic buying power will exceed Black buying power by 2005.

The report, The Multicultural Economy: Minority Buying Power in the New Century, is the latest in a series of state-by-state studies of minority buying power Humphreys has conducted since 1990.