This is an extremely important business issue, although the social ramifications are significant - and emotional.
Hispanics will outpace blacks as the most powerful minority consumers in the country next year, according to a new study from the University of Georgia.
The issues this will raise - both real and imagined - will be extremely hot topics.
You need to notice that the article states that Hispanics will be the "most powerful minority consumers" in the nation. Many will miss that and automatically come to other conclusions. That's unfortunate.
Hispanics are expected to have buying power of $863.1 billion, compared with black buying power of $847 billion in 2007. Hispanics — the nation's largest and fastest-growing ethnic minority — will comprise about 8.5 percent of the nation's total consumer market next year.
That's a lot buying power. And there's more power at stake here.
"Hispanic buying power is a good leading indicator of political power," said (study author Jeffrey) Humphreys, director of the Selig Center for Economic Growth at the university. "Now that Hispanics have the strongest buying power, that suggests Hispanic political clout will be on the upswing as well."
Great. More political power means more politicians will be pandering for it. I can't wait to see the TV ads...
But it's really just a numbers game.
According to the 2005 American Community Survey, Hispanics make up about 14.5 percent of the country's population, compared with 12.8 percent for blacks.
Of course, businesses will be vying for that power as well.
Since 1990, Hispanics' economic power has grown from $212 billion to $798 billion this year, purchasing items such as phone services, major appliances, vehicles, children's clothing and footwear.
In the same timeframe, blacks' buying power has risen from $318 billion in 1990 to $799 billion this year. Blacks tend to spend more money on utilities, apparel, footwear, housing and groceries.
So prepare yourself for, for lack of a better phrase, the "minority wars".
Then again, we can always hope that business leaders, politicians and consumers with character will help keep things from deteriorating to that point.
A look back at history does not encourage me, though.
Comment Preview