On Friday, a grassroots movement is taking place to protest exorbitant prices by purchasing nothing at all. Will businesses, however, pay attention?
The advocates of a 24-hour “economic blackout” want people to shut their wallets for a single day on February 28 after Americans have been straining their finances to keep up with price increases for several years.
The organizers are encouraging everyone to avoid shopping at all major retailers, gas stations, and fast-food restaurants on Friday, as well as to avoid making any in-person or online purchases. Additionally, the organizers advise using cash rather than credit cards and spending money at tiny local businesses if necessary.
The statement from People’s Union USA, which bills itself as “a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,” says, “If we disrupt the economy for just ONE day, it sends a powerful message.”
Without a question, consumers have a significant impact on the course of the economy. The U.S. economy is primarily driven by consumer spending, which in the fourth quarter accounted for around 70% of GDP. Consumers’ financial well-being is a constant concern on Wall Street and in Washington, D.C.
The organizers of “no-spend” Friday claim that companies are exploiting Americans by charging exorbitant rates. “For one day we show them who really holds the power,” the message from People’s Union USA states.
John Schwarz, who operates social media profiles under the handle TheOneCalledJai and has over 500,000 followers on Instagram and TikTok, formed the People’s Union USA. In a recent video that was uploaded to TikTok, Schwarz stated that “the greatest power we have is collective action.” He did not immediately reply to a request for comment. We become unstoppable as a people when we band together and defy a system that is meant to keep us struggling.
Will there be any impact from the economic blackout?
It’s unclear if the no-spend strategy genuinely reduces sales. Retailers will eventually receive their money if customers who intended to make a statement on Friday instead wind up buying on Saturday.
But occasionally, a single day can have a significant impact on businesses. Several retailers reported higher profits in 2024 as a result of Leap Day. However, obtaining an additional day for sales is not the same as attempting to stifle sales, particularly for large corporations.
Big businesses like Amazon (AMZN), valued at $2.27 trillion, and Walmart (WMT), valued at nearly $770 billion, were singled out for missing Friday’s economic blackout. A request for comment was not immediately answered by either company.
Naturally, these retail behemoths depend on customers spending money both in-person and online. In particular, last month saw the biggest decline in sales for merchants in almost two years. Retail sales often decline in January as consumers recover from the Christmas season and settle debt.
However, according to Ari Lightman, a professor at Carnegie Mellon University who focuses on online communities, protest formation, and brand perception, economic boycotts can occasionally backfire.
According to Lightman, calls to forego a purchase could potentially encourage other customers to spend their money there or on that product. There can be customers trying to quell the demonstration or companies using promotional offers to take advantage of the attention.
According to the People’s Union USA, there is no political affiliation or allegiance to this boycott or the campaign as a whole.
Nonetheless, the boycott has been seen by some as a protest against President Donald Trump. Social media posts have resulted in some stating that they want to oppose the boycott and postpone purchases they had planned for Friday.
In favor of Trump, one X user stated that he had intended to purchase a car this year and now intends to do it on Friday.
Although the no-spend protest is directed at consumerism and excessive costs, Lightman advised demonstrators to carefully consider what financial concessions they would be prepared to accept in return for a significant economic transformation. “We are habitual beings. “We love the little brown box that is delivered to our door, and we love low prices and convenience,” he remarked.
“If they can capitalize on this and grow it and mobilize efforts around regulatory reform, that’s saying something,” Lightman stated.
A study conducted on Friday by analytics firm Numerator revealed that 16% of users intended to take part in the blackout. Walmart, Target (TGT), Amazon, McDonald’s (MCD), and Starbucks (SBUX) are a few of the major retailers that customers stated they would stay away from.
What the economic downturn indicates about the attitudes of consumers
The blackout’s organizers are attempting to capitalize on the persistent resentment over exorbitant costs.
The consumer sentiment index fell to its lowest level since November 2023 in February. People fear that high prices will persist, and they anticipate that overall inflation will reach 3.5% over the next five to ten years, which is greater than the 2% objective that policymakers at the Federal Reserve believe is desirable.
Furthermore, while the 12-month PCE index climbed more slowly, from 2.6% to 2.5%, personal consumption expenditure inflation increased by 0.3% in January. Core PCE increased by 0.3%, as predicted by Wall Street.
The head of the University of Michigan’s consumer survey, Joanne Hsu, stated, “We are seeing signs of dissatisfaction, absolutely.” Age and household income are two categories that are affected by that sentiment. Despite partisan differences, Democrats and independents are especially concerned about the possible effects of more tariffs from the Trump administration.
Hsu is convinced that customers are in a bad mood, but he isn’t drawing a connection between that and the no-spend protest. “They are not feeling good about the economy,” she disclosed to BourseWatch.
As stated by Raj Ananthanpillai, CEO of Trua, a company that specializes in gathering customer and survey data for organizations, “Trust is the new currency, and businesses that don’t earn it are on borrowed time,” BourseWatch said. “This boycott is a component of a larger change in society. Customers are starting to be more selective about where they spend their cash.
