The Sneaker Cult (an economist's view)

Slate.com via National Post ^ | Thursday, January 31, 2008 | Ray Fisman

[canuck_conservative]

The truth is slowly revealed.

[mkjessup]

Having lived in many metropolitan areas with a loosely defined ‘ghetto’ area, I can personally attest to witnessing many, MANY run down houses and structures with brand spanking new, shiny, polished Cadillacs, Lincolns, Lexus, Mercedes, etc. parked out front.

[Uncle Ike]

I wish I could think of someone to invite to read this article —

I mean, how many chances in a lifetime does one get the chance to post

Bling Ping

;~)

[cinives]

This economist is missing a basic truth, namely that the reading ability of children is not considered to be a status symbol by many poor blacks(it’s considered to be “acting white”), but it is by many whites across all wealth categories.

Cosby had it right - until the black community values the future, they have none.

[squarebarb]

He’s just re-stating the opbvious. Cosby said it simply and clearly.

[steve8714]

This is why it’s called the dismal science. However, that doesn’t negate their conclusions.

[econjack]

I think it’s more complex. Black culture is more involved with immediate satisfaction, of which consumption is but one part. They do not highly value things in the future. Their discount factor is so high that investments that payoff more than a year down the road have virtually zero value. They don’t invest in themselves, but prefer to blame others for that failing, as Cosby points out. They don’t evaluate or think in the moment and weigh the consequences of their actions, because their actions are so quickly discounted by the likes of Jesse Jackson and Al Sharpton. They are quick to accuse, but refuse to admit when they are wrong (e.g., the Duke lacrosse case, Tawana Brawley, et al). Look at all the black-on-black crime. People who value the future don’t act like that. Cosby’s correct in his attempt to make his community see the value of education and deferred consumption. Like the old saying: If you think education is expensive, try ignorance.

[STONEWALLS]

....I used to eat lunch at a BBQ rib joint in a rundown black part of town...most times I was the only white boy there...and usually the poorest dressed; my pants and shirt came from Sears....the black patrons were all wearing gold chains, wind suits and high end sneakers....I retired well off at 55....wonder how the gold chain crowd did?

[FixitGuy]

Bingo ping!

[CodeToad]

“retired well off at 55....wonder how the gold chain crowd did?”

Many didn’t live to be 55.

[3AngelaD]

But why use sneakers, as opposed to phonics toys, as a wealth signal?

For starters, because it is hard to walk around with phonics toys strapped to your feet. I am thinking about this in the context of Thorsten Veblen's theory of the leisure class and "conspicuous consumption." It seems to me one thing going on here is that the people in this article have adopted the habit of conspicuous consumption without having achieved the income levels of those they are imitating, and have no clue as to why or how to go about doing so.

[50sDad]

Willie Cunningham, local radio talker and Great American, said it well...it's not about skin color, but it is about Culture. No matter what your skin color is, if your music glorifies abusing women and drugs, if having a good education is considered "behaving unlike you", if you have unwed mothers, absent or emotionally distant "fathers", grandma's raising the kids, your culture is bankrupt. When I think of the people that they trot out for "Black History Month", from Rosa Paes to George Washington Carver and the other ten heros they parade, every one of them would today be dismissed by some of today's Young Black Men for being "too white" because they held down jobs, valued education, worked hard, and took care of their families. Black culture of the early last centure gave us Jazz, Rock, improved air conditioning, Swing, and dozens of inventions. Black culture of the last forty years gave us Rap Music, "hoes", and the laughable use of the "N-word" as anything but a filthy abomination.

The Greats of Black history must be rolling in their graves.

[1rudeboy]

Interesting read.

[Richard Kimball]

I see three parts.

1. Immediate gratification vs. deferred gratification.
2. Perception of being in control vs. being controlled by outside forces.
3. Working for the benefit of the individual vs. working for the benefit of all.

A balance between the extremes creates the most success in all areas. The least successful people tend to go for immediate gratification, view the results of their life as being determined by people other than themselves, and tend to be self-centered. This is true regardless of race.

Balance is important of course. There are people wearing $150 sneaks while ignoring their future, but there are also people living in squalor that have the means to live comfortably, but are 85 years old and saving for their future.

[Paradox]

The Cosby explanation -- that there is simply a culture of consumption among black Americans -- doesn't quite cut it for economists. We prefer to account for differences in behaviour by looking to see if there are differing incentives.

Why would otherwise similar black and white households have different incentives to signal their wealth? Charles, Hurst and Roussanov argue that it's because blacks and whites are seeking status in different communities. In the racially divided society we live in, whites are trying to impress other whites, and blacks are trying to impress other blacks

A difference without much distinction, if you ask me.

[Wonder Warthog]

"The Cosby explanation -- that there is simply a culture of consumption among black Americans -- doesn't quite cut it for economists."

The author's premise is basically BS. What, other than a cultural meme, exactly IS a "signalling game"? The author needs to read some basic texts on sociology.

[RichardMoore]

I agree with Cosby. But I must add that his Fat Albert show promoted the style of dress that is popular today among Blacks and poor young whites. But that was a show about children and that is the point. Today’s Black individuals generally see themselves as victims and ultimately as children with the Federal Government as their single parent. That is why they love the democrats and Hillary.”We need a mommy.” But the dress problem is only a symptom of a larger lack of real self-esteem in my opinion.

[L,TOWM]

This is why it’s called the dismal science.

A sad label for what could very well be a most liberating academic idea:

No one gets everyhting that they want. Making smart choices means you will be able to obtain what you need.

An excellent way to free your heart and mind. And as you well know, free your heart and mind, soon after, your a-- will follow.

[3Lean]

Assuming that the findings hold up to the test of further research, it would be interesting to look at the “value” of the goods chosen for “conspicuous consumption” for the white and black family. It may well be that both families spend the same amount of visible goods, but if one’s choice is $500 sneakers and 18” rims while the others is a high quality vehicle and having one parent forego the job market to stay home with the children then the future outcome for the children would be radically different.

[wizr]

Excellent.

When we are quick to blame others, we fail to see our own shortcomings. If we can forgive others, then, we can work on our own problems.

Even the rich know that “things” do not fill an empty life.

We must come to terms with our own hearts, eliminate hatred and fear, and work to build friendship, not competition.