During Christmas holiday season, an enormous amount of money is expended to create happiness, but, in reality it makes millions of Americans slaves into perpetuity.

Slavery in America is reportedly forbidden as it pertains to shackles, chains, forced labor and confinement without pay for labor. Individuals are not to be treated as property where they can be captured, bought, sold, deprived of health care and subjected to inhumane treatment for extended periods of time without recourse. Ironically, while slavery has been outlawed in most countries, inclusive of America, it continues through practices of debt bondage. Debt bondage occurs when individuals borrow or spend their earnings to acquire items that have no value or functional utility and pay exorbitant prices using credit cards with extremely high interest rates cards for purchases. When one borrows money “the borrower becomes servant to lender.” In such a position of servitude, the borrower has allegiance to that lender just as a slave has allegiance to ‘Master’ and you agree to give your wages or earnings to that lender before you ‘pay yourself first’ (PYF).

Economic promiscuity transpires when economically misguided individuals, socio-economic or ethnic group willingly and perpetually donate their compensation to others and receive little or no measureable benefit for their gift in a market economy. These transactions may be disguised as reasonable and equitable but in reality, buyers are being duped and sellers have no concern for buyer’s health, education, welfare, safety or general state of being.

Tragically, there are millions of Americans that engage in this kind of promiscuous behavior and are indebted from ‘cradle to grave.’Vast majority of these individuals are Black and brown people or members of an economically ill-informed minority. Such spending leaves a vast number of persons financially depleted at end of their working years because consumer spending constitutes two thirds of output in a $12 trillion dollar economy.

Slavery in any form has no history of being pleasant for those enslaved. Whenever those confined in a debtor’s prison recognize adverse impact of such a process, they will be in a position to improve their lives and those of future generations. Prosperity should be embraced by all Americans, but unfortunately capitalism and egalitarianism historically have been unable to co-exist in a democratic society. Desire, drive, enthusiasm and propensity to excel are radically different in each individual and those with greater energy to succeed will excel and be rewarded accordingly.

Religious institutions for persons of color are, by far, the most potent engines in America to alter reckless spending. Once a nexus is created by a populace between consumer spending, voting, being debt free, business and politics, America will move from a debtor nation to a great nation. Success comes to those who crave challenges and seek growth. Necessity for change must coincide with desire to change and leaders must emerge. If an economic rebellion occurs to alter this financial debacle, religious institutions must be in vanguard. If change fails to reach fruition, America will go the way of the Roman Empire. 

Pathway to slavery for  ‘economically misguided’

Numerous times during a year, Christmas holidays in particular, ‘economically misguided’ expend huge amounts of money, at a time when merchandise is most expensive, acquiring frivolous items that have no appreciable impact on their lives. This is a period for saving and investing because demand for goods and services are typically being offered at higher than typical rates. Often times economically misguided are not educated to acquire appreciable items such as real estate, stocks, bonds, debentures or investing in retirement programs. This  segment of population,  people of color in particular,  enthusiastically engage in “  promiscuous spending “… they acquire the most elegant, designer clothes, drive plush expensive vehicles, wear the finest jewelry, purchase  expensive furnishing for rental homes and apartments, consume expensive food and beverages at exclusive restaurants , and partake in exotic, extravagant vacations. Lenders allow individuals to charge such expenses to credit cards and usually require minimal payments to increase interest earned by lenders and prolong indebtedness for borrowers.

In many instances, debtors occupy low skill positions in the labor market, have very limited educational attainment, abysmal credit sores, no cash reserves, and reside in substandard housing in declining neighborhoods.  They have little or no health care coverage and live pay check to pay check. Change is possible, but it must come from within those individuals adversely impacted by such ailment.

The aged poor exhaust their high interest rate credit cards limits in an attempt to buy love from children/grandchildren and impress people that have no conceivable significance to their well- being. The designed poor go to work diligently, attend church consistently, tithe faithfully, but are financially depleted week after week, month after month and year after year due to choices they make regarding cash allocations. Individuals who embrace these kinds of characteristics and live under such devastating circumstances cross every ethnic group in society, but a vast majority are people of color. When a group of individuals is exploited or eviscerated by another party through force and deception it has a different connotation, but when financial humiliation and degradation is self-inflicted its ‘economic suicide.’

Only a limited number of ethnic groups engage in such behavior to help the ‘rich get richer’ as at expense of their own people. Perhaps one reason for this bizarre behavior is taxes and high capital cost of establishing inner city business enterprises in minority concentrated neighborhoods. In some instances, it may be due to lack of knowledge because they don’t understand how money, finance laws and profitability operate. In other instances, it may be contributed to rich making better decisions than people who are not rich and they study and work toward making money. It could be due to lack of savings by working class that causes them to end up poor at commencement of life’s journey.

Reportedly, one tenth of 1% of Americans or some 16,000 families owns over 11% of the country’s wealth which is greater than bottom two thirds of population collectively. In spite of a multiplicity of causes, poor people are wounded economic animals attempting to navigate in a robust, worldwide market economy and their numbers are increasing.

In spite of what has been promulgated by social scientist, statisticians, political pundits and economists regarding cyclical effects of the economy, excruciating economic conditions have been constant for people of color in America. Economic gaming and marketing tactics utilized by rich and powerful individuals to persuade an economically educated and uneducated minority to expend money for holidays when prices are excellerated is chicanery, but viable. It has a pernicious impact for saved and unsaved, educated and non educated, gay and straight, democrats, republicans and independents that last for long periods of time.

From a historical perspective there seems to be no cure or remedy for individuals relinquishing their earnings to individuals or entities they don’t know, like or care about their general welfare. Promiscuous spending by African Americans, in general, especially during holiday seasons, from ordinary income exemplifies a desire by purchasers to acquire acceptance in an entity where they are not wanted or appreciated. However, they refrain vehemently from acquiring appreciable items such as certificate of deposits, savings account, college investment fund, acquiring stocks, bonds, real estate or invest in a 401k. If these items were acquired from residual income, it would not be such a catastrophe, but ordinary income can be most devastating. Unfortunately, they work thirty to forty years and have not acquired appreciable assets, not purchased a home for personal comfort and joy during their sunshine years and often times are dependent upon others to provide care for daily living activities.

Mitigating factors

Holiday season is obviously a sensitive period for minorities due to its attachment to religion and Christianity.  There is a pensive mood for giving, attachment and most of all dejection. Black and Brown people work diligently to develop a sense of acceptance through buying and giving to improve self-worth and enhance a sense of belonging. As the holiday season approaches, retailers are promoting $100 toys for 4-8 year old children and athletic shoes in $300-$400 range, not to mention, games and other electronic gadgets commanding prices at $500 and up.

In 2013 consumers spent an average of $775 per person, according to National Retail Federation, and with a slightly improved economy a figure of some $875 per person is projected for 2014. In spite of what has been articulated by sociopolitical economic pundits, gains for Blacks, Hispanics and Indians has been a vicious battle. Bureau of Indian Affairs has been of some economic solace for Indians germane to health, education and welfare sustenance, but for African Americans and Hispanics it has been a battle of gigantic proportions with a multitude of calamities.

This is an economic catastrophe by every sense of the imagination because behavior patterns are habit forming dictated by circumstances. However, in the final analysis, economic behavior is self-inflicted and gratifying for those that embrace this pattern of behavior.  It’s apparent from expenditure patterns of African Americans and Hispanics that financial freedom, wealth building, savings and asset accumulation has marginal impact, if any, on their life style. Both groups are able to maintain stable employment with respectable incomes.  Approximately, 47.4 % of Hispanics owned homes in 2011 compared with 45.1 % for Blacks during same period.

Home ownership has typically been a good investment for most Americans, but due to a massive downturn in the economy between 2006 and 2012, numerous minorities lost homes due to foreclosure. This was also a period when downsizing, debt, divorce and disability had a disastrous economic impact on the economically downtrodden.  In addition to this debacle, most Blacks and Hispanics typically acquire property in majority minority neighborhoods which generally do not appreciate as rapidly as properties acquired in neighborhoods with less than a minority majority ratio. 

Emergence of entrepreneurial icons despite prejudicial circumstances

American dream entails owning land, establishing an economically viable business successfully raising a family, sending children to college, possessing adequate capital reserves, going on family vacations and ultimately having children assume control of family business. This scenario has obviously escaped African Americans and Hispanics and it has become an American nightmare.

From a practical perspective, no other group in American history has been compelled to endure 250 years of slavery, 90 years of Jim Crow, 60 years of separate and unequal. In spite of all these debilitating factors, this is not to mention 35 years of state sanctioned redlining, subliminal racism, and still produce millionaire entrepreneurs and ultimately a United States president. Comer Cottrell, Wally Amos, Madam C. J. Walker, A. G. Gaston, Bob Johnson, Oprah Winfrey and John Johnson excelled economically under such barbaric economic constraints.

Each of these entrepreneurial icons possessed will power, tunnel vision, persistence, and economic tenacity to annihilate barriers for market superiority. Each became millionaires when that amount of net worth had value and African Americans had greater market control for their products and services. Vitality and desires for success of individuals of this caliber appears to have vanished from African Americans pathos.

For an extended period of time, African Americans have willingly, intentionally and unconditionally given money to a group of individuals with whom they have limited affinity, who don’t reside in their neighborhoods and have no utility for them other than absorbing their money, pleasure or entertainment. Fulfillment of the American Dream to achieve financial freedom through hard work and living a happy life has escaped African Americans and Hispanic due to structured racism in society.

To be continued…..

By F. Eugene Mayo       
The author is an entrepreneur and free Lance writer.