It sure has been a while! Sorry about the month between posts, people. I’ll try to not let that happen again.
A former Professor of mine, Erik Hurst, co-published an interesting paper concluding that:
- Blacks and Hispanics spend 30 percent more than whites on clothing, cars, and jewelry—an amount that averages out to around $2,000 per year per household.
- Blacks and Hispanics are spending less on education and health care and saving less money.
Signaling: Showing off this bling, in the form of nice clothes, nice cars, and so on shows that you have money and a job, something many members of these socioeconomic groups do not have.