There was a derogatory term, a racist term, that I heard growing up. The term was used whenever anyone came into a bit of money and then made extravagant and unwise purchases that were meant to be seen by friends and family.
Turns out, the term is founded in truth, but they have a more sophisticated way to express it. Economists call it “visible spending.”
Those are purchases like clothes, hair, nails, jewelry, and luxury cars. It differs from prudential spending, like education, health, homes, home repairs, investments, etc.
Racism is not the driving factor for blacks lack of wealth accumulation. It is poor choices.
The researchers looked at the Japanese in America (as well as other ethnic minority groups). The peasant farmers were not allowed to own land, they were put in interment camps and were subjected to racism, yet they are on track to surpass whites in America in terms of wealth accumulation.
Wealth, it seems, is accumulated from the bottom up, not the top down. And blacks who remain at the bottom do so because their game plan does not include long term, conservative choices.
This is a remarkable read, and it’s sure to be called a racist screed.
ht/ c. steven tucker