rewrite this title What Is the Feb. 28 ‘Economic Blackout’? – NerdWallet

A series of viral social media posts is urging consumers to forgo purchases at major retailers for 24 hours on Friday in a demonstration of their economic power.

The so-called “economic blackout” is the brainchild of John Schwarz, a Chicago-based influencer and meditation teacher who goes by “theonecalledjai” on Instagram and TikTok. Schwarz, who also heads a nonpartisan, grassroots organization called the People’s Union USA, posted a series of videos earlier this month calling for the boycott.

In a video posted on Feb. 4, Schwarz said, “The economy does not belong to the rich. It belongs to us — the people who wake up every day and keep this country moving. But instead of serving us, the system has been designed to exploit us: Corporations profit off of our labor while keeping wages low; banks steal billions due to inflation and predatory policies; politicians accept bribes disguised as donations while ignoring the people. They have taken everything from us while convincing us that we should be grateful for the scraps — and that ends now.”

The boycott gained momentum quickly on social media and garnered support from influencers and celebrities. It begins at 12:01 a.m. on Friday and ends at midnight.

The initiative urges consumers to refrain from purchasing fast food, gas or items from major retailers; the People’s Union USA specifically calls out Amazon, Walmart and Best Buy. It also urges consumers who must purchase essentials like food, medicine and emergency supplies, to do so only from small, local businesses. Those who do need to make purchases should do so with cash rather than debit or credit cards.

“On February 28th, we are going to remind them who really holds the power,” said Schwarz in the Feb. 4 video. “For one day, we turn it off. For one day we shut it down for one day. We remind them that this country does not belong to the elite, it belongs to the people.”

The blackout arrives as consumers are becoming more pessimistic about the economy. The latest data from the University of Michigan and The Conference Board, which survey and index consumer sentiment, show a sharp drop in February. The Conference Board’s index, released on Feb. 25, showed the largest month-over-month decline since August 2021.

Significant progress has been made in slowing inflation — enough for the Federal Reserve Open Market Committee (FOMC) to cut interest rates three times since September — and unemployment remains steady. But prices for essentials like rent and groceries remain elevated; the most obvious example is egg prices, which are at a record high due to the avian flu crisis.

The Conference Board’s report notes that consumers surveyed mentioned sticky inflation. But the factor that consumers cited most was the Trump Administration and its policies, including trade and tariffs.

It’s unlikely that the blackout will have much impact on the economy, which Schwarz acknowledged in a video posted on Feb. 22. “Look, [there are] 340 million people in America — a lot of people are going to go out and shop,” said Schwarz. “But if millions of us don’t, it still shows a great stand of resistance.”

In the Feb. 22 video, Schwarz added that after the one-day boycott, he’s hoping to keep the movement going with week-long boycotts of individual companies through July 4. He said, “That is when they will feel the financial strain from our resistance. All this is being planned out properly and logically, my friends. Trust me, we will make changes. Our voices will be heard.”