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At least one local business is closing in solidarity with Friday’s ‘economic blackout’
A grassroots movement asks Americans to abstain from shopping from major retailers on Feb. 28.
Gather Here, a stitch lounge in Cambridge, is closing on Friday in solidarity with the nationwide grassroots movement calling for an “economic blackout.”
“We recognize that not every small business can make this decision…But we have been asking people to vote with their wallet since we opened in February 2011 – to spend more at local businesses and support the small businesses in their communities because where we shop matters,” owner Virginia Johnson wrote in a social media post.
The People’s Union USA is leading the economic blackout. It is a “grassroots movement dedicated to economic resistance, government accountability, and corporate reform.”
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The group, which has no political affiliation, aims to unite Americans against corporate greed. John Schwarz founded it to raise awareness about how the “system is rigged” against everyday Americans. The protest comes as many Americans struggle with the high cost of living.
Johnson hopes to make a difference at Gather Here by halting credit card payments.
Johnson noted that 96% of the sales process through the store involves credit card companies. When a customer uses a credit card at the store, credit card companies charge retailers a small percentage of the total purchase price as an interchange fee or swipe fee. In addition, the store uses credit cards to pay their suppliers.
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“So we’re going to stop the flow of fees for a day,” Johnson wrote.
“Will it make a difference?” asked Johnson. “Well, I believe that if enough people choose to avoid spending money on Friday the 28th, it will make a dent and show folks that WE ARE ABLE TO ORGANIZE.”
Gather Here Cambridge isn’t the only local business supporting the cause. Lola’s Coffee and More in Medford will offer a 20% discount to cash-paying customers on Friday.
“I feel like people are struggling in so many ways,” said owner Pearl Brault on Thursday. “I see it in my customers and the buying powers of people coming in here. If my community is hurting, I feel like I have to be a part of that.”
Brault says that, despite the potential impact on her business, it’s important to share the message that “our families are struggling.”
“Our government and people handling our economy — they have not heard the voices of people who live paycheck to paycheck,” Brault said.
What is the economic blackout?
The blackout asks consumers to avoid all unnecessary in-person or online purchases from midnight Thursday to midnight Friday.
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“No Amazon, No Walmart, No Best Buy,” The People’s Union USA website says. “Nowhere!”
The website also urges consumers to avoid spending money at major retailers and using credit or debit cards to make unnecessary purchases.
The only exception is essentials such as medicine, food and emergency supplies, which the organization recommends purchasing at small, local businesses.
The People’s Union USA already plans other targeted economic actions, including weeklong blackouts against specific retailers like Amazon, Nestle, and Walmart.
In an Instagram video posted last week, Schwarz said the blackout is meant to show that large corporations don’t run the economy but that everyday consumers do.
“For our entire lives, they have told us we have no choice,” said Schwarz. “That this is just how things are. That we have to accept these insane prices, corporate greed, billionaire tax breaks all while we struggle to just to get by,” he said.
Schwarz added, “For one day, we are going to finally turn the tables.”
Will it work?
The movement is targeting consumer spending, the bedrock of the U.S. economy, which accounts for nearly 70% of the U.S. GDP, according to the Federal Reserve Bank of St. Louis.
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But, some critics say stopping spending for one day won’t make an impact.
“A lot of people dismiss the idea, arguing that a one-day spending freeze won’t move the needle for major corporations or the broader financial system,” Kevin Thompson, the CEO of 9i Capital Group, an investment advisor in Texas, told Newsweek. “And I agree – it’ll likely have a minimal direct impact.”
“But what many overlook is the power of the idea,” Thompson continued. “The playbook for this already exists—Montgomery, 1955, the Bus Boycott. If this gains traction, it could turn into something much bigger, especially if people extend it beyond just one day.”
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