Money is there to be spent. Sure we should save, but that is only to have it to spend later. We enjoy what we buy, but at what expense? And how are we manipulated to spend more and more money?
Barney knows money. He is an ex-Marine and he looks like he was just discharged, even at 40 years old. He is fit, speaks well and looks like he has money. Sophisticated and outspoken, he is a real asset to the sociology class I teach. He is truly passionate about promoting progress in his community, the urban African American community.
After a class in which we discussed the effects of status, status symbols and money. Barney became really worked up. The subject: Timberland shoes. What’s with the Timberland? You see, he works as a disc jockey and sees and talks to youngsters daily. He see what they spend money on. This is, apparently, the latest fad with the urban Black kids.
“Do you know that some of these kids have six or seven pairs of these shoes at $100 a pop!” Barney was livid. He could not understand why these kids are wasting their money on useless symbols instead of saving or investing in their futures. “I see kids who think that giving their money to big White corporations is going to get them a good life. What the hell are they thinking? It drives me crazy!”
So why do people who absolutely should not splurge on luxuries do exactly that? Some clues can be found in an article in the current edition of Scientific American Mind. Daisy Grewal describes research where African Americans were presented with stereotypical characterizations prior to being asked how much money they would pay for a luxury item. When compared to various control groups, these people were willing to pay more than Whites or Blacks who were not presented with the stereotypes.
The same phenomenon was found in other ethnicities. At least for Americans. (I have a suspicion that this particular research is valid only for Americans. Americans attach more symbolism to money.)
It seems that when there is a perception of even slight disrespect, people will message their egos by spending money on status symbols and the more they splurge the better the message.
This might be true. It might even be a “natural” reaction. Here’s the big problem: once established as scientifically valid, it can become dangerous. Just think how it can be used. A fancy fashionable company opens a store in a urban lower class neighborhood to show how they are not prejudiced. Let say, Coach. They recognize that some people in Harlem can afford their products and claim that opening a store will help the community. All that would probably be true. Then they are worried about increasing their sales and hear about this phenomenon. Some shady are found hanging out in front of the store. So the get extra police protection. Some people will feel dissed. So they will be more willing to spend extra money. If I am wearing or carrying Coach Leather, I’ve got the power! With less money for personal advancement and investing they are more likely to remain poor.
And Barney will have more to be passionate about
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