How The Economic Blackout Could Backfire On Main Street

The economic blackout which aims to hurt large corporations by telling consumers not to spend money at major retailers and chain stores is an action that may end up hurting small businesses, the backbone of America. “February 28 the 24-hour economic blackout, no Amazon, no Walmart, no fast food, no gas, not a single unnecessary dollar spent,” said John Schwarz, founder of The People’s Union USA in his TheOneCalledJai Instagram video. The position of the company founded by Schwarz is aimed at American consumers taking a stance against corporate greed. The company goes against large corporations that have driven up prices, underpaid their workers, and outsourced jobs while raking in record profits. The messaging focuses on empowering consumers to recognize their influence in the economy and challenging the narrative that large corporations are indispensable.

Halting Discretionary Spending With Economic Blackout

The call to action from Schwarz is urging a complete pause on discretionary spending with the intent to impact large companies, however, consumers may boycott all businesses including small ones that contribute the most economic value to communities. “Small businesses are more than just commerce – we’re the thread that weaves communities together,” says Ann Cantrell, founder of Annie’s Blue Ribbon Store in Brooklyn, NY. Cantrell is speaking out against proposals for a nationwide shopping blackout for all retailers and urging consumers to redirect their purchasing power toward independent retailers who consistently reinvest in their communities.

“The heartbeat of America’s economy is the thousands of independent shops lining our neighborhood streets,” explains Cantrell. “Local shops serve as vital community pillars.” Cantrell talked about how eight stores in her neighborhood collectively raised over $15,000 for California wildfire victims, and local merchants provided essential support to single mothers at a neighborhood food bank. “While big corporations focus on policy shifts, we’re focused on directly lifting up our neighbors in need,” Cantrell said, highlighting the stark difference between corporate and local business impacts.

Recent Inflation Numbers Prompt Economic Blackout

The Consumer Price Index (CPI) rose .5% in January as compared to December with a 12-month rolling increase of 3%. Housing was nearly 30% of the increase in January with other non-discretionary categories like energy, gas, and food increasing as well. “We’re moving in the wrong direction,” warns CBS News Money Watch correspondent Kelly O’Grady, highlighting how inflation continues to diverge from the Federal Reserve’s 2% target. “Inflation is remaining sticky in those need-to-have areas – shelter, energy, food – you can’t decide not to eat one month,” said O’Grady who also made the comparison that while prices have surged 20.7% since four years ago, wages have only increased by 19.3%. “That’s why it hurts in your wallet,” O’Grady explains. This widening gap between price increases and wage growth continues to squeeze American households, especially in fundamental living expenses. On-going price increases have prompted organizations like The People’s Union USA to push back on corporate America.

One Economic Blackout With More To Come

While Schwarz has recognized one day of boycotting large companies may not have a financial impact on the company revenue, his plans are much grander. After February 28 the plan is to target specific companies for longer periods. “With 340 million people in America, a lot of people are going to go out and shop on February 28 but if millions of us don’t, it still shows a great stand of resistance. And then a week later, when we start boycotting them for a week at a time, individual companies, that is when they will feel the financial strain from our resistance,” stated Schwarz in a recent Instagram video. The week-long boycotts will be targeted at specific large retail companies and not small businesses.

Companies That Pulled Back On DEI Initiatives Are Targets For Economic Blackout

Many supporters of the economic blackout have suggested specifically targeting companies that have pulled back on their DEI initiatives. However, The People’s Union USA has not specifically stated it will be targeting these companies and is looking for a broader economic impact across many larger companies. “Corporations are caught between a political climate increasingly hostile to DEI initiatives and a significant portion of their employees and customers who staunchly support them,” said Arick Wierson, a corporate communications consultant and former senior advisor to ex-New York City Mayor Michael Bloomberg. “Consumer boycotts, like one-day shopping blackouts or prolonged brand boycotts, often fail unless the company’s actions are particularly egregious. Typically, consumer needs outweigh ideological positions. The key for corporations is to proceed cautiously; now is not the time to challenge federal policies, as doing so could effectively place a target on your back.”

Systematic Change With Economic Blackouts

The tension between consumer activism and economic reality sits at the heart of this economic blackout debate. While The People’s Union USA’s campaign aims to challenge corporate power through collective consumer action, small business owners highlight the delicate economic ecosystem is at stake. The planned progression from a one-day economic blackout to targeted weekly boycotts suggests a growing sophistication in consumer activism, yet the movement’s effectiveness will hinge on whether it can maintain momentum.