As DEI programs across the nation are being cut, consumers are reducing their spending through economic blackouts and boycotts in an effort to express their dissatisfaction.
UCCS Chair of the Department of Economics Joe Craig said these practices have the potential to be effective, but the biggest challenge they face is a lack of awareness and participation from consumers.
An economic blackout is a 24-hour period where consumers make no purchases and minimize interaction with big-brand entertainment, such as Netflix and SONY. According to The People’s Union USA, economic blackouts are intended to exert consumer power over corporations by displaying consumer displeasure.
Economic boycotts resemble blackouts, but they target a specific business for an extended period of time. Boycotts target companies known for malpractices such as price gouging or mistreating employees, according to Craig.
On Feb. 28, The People’s Union USA led an economic blackout, and corporations that have stricken their DEI policies faced the most impact. Walmart’s web-traffic was 6.5% lower and Amazon’s was 4.6% lower than the previous Friday, according to USA Today. Costco, who has not withdrawn their DEI policies saw an 8.3% increase in their web-traffic on Feb. 28.
While web traffic was down, other data from the blackout suggests that spending was actually up 1% for Amazon.
Craig said that while the blackout showed impact in some areas, boycotts are overall more effective. Boycotts concentrate on one corporation and lists specific demands. Additionally, boycotts are more likely to affect revenue since they are longer-lasting, said Craig.
“Boycotting is a great opening as long as there’s good follow through with consumers. If you can really get people involved, get people upset and get people to change their actual buying choices and patterns, then it can be highly effective,” Craig said.
According to Craig, economic protests can be more effective if they generate bad press. Businesses with one negative online-article risk losing up to 22% of prospective customers according to Status Labs. The risk grows with a loss of up to 70% of prospective customers after four or more negative articles.
The People’s Union USA was founded by John Schwarz. According to their website, it is a grassroots organization attempting to unionize the United States people against “the government, corporations and the wealthy elite.”
The organization hopes to bring about economic resistance, government accountability and corporate reform, according to their mission. They have a list of demands, including ending government corruption, ending corporate greed, and economic, healthcare and immigration reform.
The People’s Union USA are leading a boycott of Walmart from April 7-14 according to USA Today. Atlanta Reverend Jamal Harrison Bryant organized a 40-day Target boycott that started on March 5, according to CNN. Both boycotts are in response to cuts in DEI programs.
The next economic blackout by The People’s Union USA will be April 18. Students can learn more at The People’s Union USA’s home page, which lists the current boycotts and blackouts.
Photo by Nick Chong on Unsplash.