The Latino Freeze Movement Economic Opportunities And Challenges

Forbes

10-04-2025

Vector illustration of the word Boycott red ink stamp
Something is happening that exemplifies the Latino community's socioeconomic power, strength, and significance: The Latino Freeze Movement.
The Latino Freeze Movement is an economic resistance movement that leverages Latino spending power to foster respect and inclusion. Structural inequities are pervasive in Latinos' lives, but they have started to erode primarily due to social policy commitments to diversity and equity. However, calls to eliminate or roll back these policies have begun to negatively affect previously achieved victories for equitable access and opportunity. The directive to dismantle policies designed to address diversity and inequities has ignited a call to action for many Latinos. Civil rights activist Dolores Huerta aptly says, 'If you don't respect our community, then you shouldn't have our dollars.'
Professor Caroline Chen of San Jose State University notes that the Latino Freeze Movement is a targeted spending boycott led by various Latino leaders and consumers. The boycott focuses on companies that have set aside diversity, equity, and inclusion efforts, with movement leaders encouraging Latinos to significantly alter their buying habits. When purchasing necessities, if possible, the Latino Freeze Movement says that Latino consumers should not patronize businesses that have discarded their diversity, equity, and inclusion programs.
Furthermore, when considering discretionary spending - such as buying a new purse or dining at fast-food restaurants - Latino consumers are encouraged to adjust their choices to support companies prioritizing diversity, equity, and inclusion. Additionally, they should strive to support Latino and Black-owned businesses, especially small enterprises, for all purchases. For example, when grocery shopping or looking for new shoes or a tote bag, Latinos' first choice should be to buy from a local business owned by a Latino or Black entrepreneur. Avoiding large corporations that have abandoned their diversity, equity, and inclusion programs should take precedence for Latino consumers. Movement leaders also suggest that if a necessary item cannot be found at a local Latino or Black-owned business, it should be purchased from a company dedicated to maintaining its diversity, equity, and inclusion initiatives.
A 2022 McKinsey & Company report revealed that Latinos are the fastest-growing segment of the nation's GDP. According to a 2023 report from researchers at Arizona State University, Latinos contribute $3.2 trillion to the U.S. GDP, while their purchasing power is $3.4 trillion. These significant economic markers, combined with the Latino population's youth, labor force participation rates, increasing levels of educational attainment, and their role in population growth, indicate that businesses need and rely on Latino consumers. "Businesses must seek to understand the impact the community has on their workforces and customer bases or be left behind,' says Professor Dennis Hoffman at the L. William Seidman Research Institute at Arizona State University.
Businesses need Latinos to increase, or at least maintain, their purchasing levels. The economic behavior of Latinos is crucial for companies to achieve healthy bottom lines, ensure heavy traffic in online and brick-and-mortar stores, and sustain growth - all of which are essential for a robust economy. 'It is truly striking how vital the Latino cohort is for the U.S. economy,' says Arizona State University Professor and Business School Dean Ohad Kadan. Further elaborating on the importance of Latino economic power, he says, "Business leaders around the nation should internalize the growth of the Latino economic power for the success of their businesses.'
The Latino Freeze Movement jeopardizes the steady flow of customers purchasing goods and services, affecting company profits and sustained growth. A boycott in which Latino consumers choose not to spend their dollars at specific stores or significantly reduce their spending will considerably impact businesses. This impact will be quantifiable and substantial. However, like most economic actions, there are likely to be unintended consequences resulting from the Latino Freeze Movement.
Latina restocking merchandise at a big box store.
There is no doubt that if the Latino Freeze Movement gains the momentum that many business leaders believe it will, certain stores may become less crowded, experience a decline in profits, and reduce workers' hours or even lay off employees. According to the U.S. Census Bureau, Latinos make up approximately 19% of the workforce in the service sector. One potential and unfortunate consequence of a successful Latino Freeze Movement is that Latino workers in service occupations, such as retail and customer service, may face economic hardship due to lost wages from reduced hours or layoffs.
Simultaneously, the success of The Latino Freeze Movement is likely to result in more shoppers and purchases at businesses dedicated to diversity, equity, and inclusion. These businesses may need additional workers and increased hours for current employees. However, those businesses are unlikely to have the capacity to employ all the workers who may experience reduced hours or job loss at the companies that have abandoned their commitment to equity and fairness.
While these unintended consequences are unfortunate, they also provide opportunities.
Latina small business owners.
The Latino Freeze Movement has the potential to remind companies that attention to a diverse workforce and a respected consumer base is as crucial as selling goods and services. If companies fail to show the respect Dolores Huerta spoke of, Latinos have an opening to develop and nurture creative and economically robust alternatives for their community. They can foster support for expanding the already significant entrepreneurial activities within the Latino community and enhance the skill levels of Latino workers. Moreover, the Latino Freeze Movement and its consequences afford Latinos a unique opportunity to reshape the community's economic landscape and wealth accumulation prospects.
One specific action that can be taken is to generate economic support for Latinos to start new businesses. If Latino consumers stop purchasing goods and services from companies that have abandoned their commitments to diversity, equity, and inclusion, these consumers will need to find alternative businesses. The demand for goods and services within the Latino community will not disappear. What better place to invest Latino consumer dollars than in Latino-owned businesses?
Another potential action is for Latino leaders to identify and support improved job and educational training opportunities for Latino workers who may experience reduced work hours or layoffs due to a successful Latino Freeze Movement. These opportunities will enable affected Latino workers to enhance their educational and work credentials, potentially expanding their job options and possibilities.
The Latino Freeze Movement's demand for respect and equity in exchange for their dollars sends a powerful message to businesses. Simultaneously, it creates opportunities for expanding Latino entrepreneurial activities and enhancing the work skills of Latino workers, which, in turn, will benefit the Latino community and the nation.