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The Unexpected Origins of “Black Friday”

Today, the term "Black Friday" conjures images of early-morning crowds, long lines, and deep discounts. It’s a day that kicks off the holiday shopping season, with retailers competing to offer the best deals. But the phrase's origins are rooted not in commerce, but in chaos—a financial crisis in the 19th century that left an indelible mark on American history.

The Black Friday of 1869: A Day of Financial Ruin

The original “Black Friday” dates back to September 24, 1869, during the presidency of Ulysses S. Grant. On this day, the U.S. gold market crashed due to a scheme orchestrated by two Wall Street financiers, Jay Gould and James Fisk. Their goal? To corner the gold market by purchasing massive amounts and driving up prices.

Their plan seemed to be working, causing gold prices to skyrocket. But when the federal government, alerted to their scheme, intervened by releasing gold reserves into the market, prices plummeted. The sudden crash led to financial ruin for many investors and caused widespread panic on Wall Street. Newspapers of the time dubbed the day “Black Friday” to signify the devastation it brought to the economy.

From Crisis to Commerce

Fast forward nearly a century to the 1950s and 1960s, and the term "Black Friday" re-emerged—this time with a very different connotation. In Philadelphia, the Friday following Thanksgiving was notoriously chaotic. Thousands of shoppers flooded the city to kick off their holiday shopping while also attending the annual Army-Navy football game, held on that Saturday.

The influx of people created gridlocked streets, overwhelmed public transit, and overworked law enforcement. Local police officers, tasked with managing the crowds and traffic, began referring to the day as “Black Friday” to describe the stress and disorder it caused.

The Retail Industry Rebrands Black Friday

While the term carried negative connotations at first, retailers saw an opportunity to turn it into something positive. By the 1980s, "Black Friday" was widely adopted across the United States as a day of major sales and promotions. Marketers even spun the name into a celebratory term, claiming it was the day businesses “went into the black” (turning a profit) after months of operating at a loss.

This clever reinterpretation helped transform Black Friday into the shopping extravaganza we know today—a day synonymous with deals, discounts, and the beginning of the holiday season.

Black Friday Around the World

What started as an American tradition has since gone global. Countries like Canada, the UK, and even parts of Asia have adopted Black Friday sales, tailoring the event to their own cultures and shopping habits. In some places, the day has even expanded into "Black Week" or "Cyber Week," with online shopping platforms joining the frenzy.

Did You Know?

1. Cyber Monday: This online shopping event was created in 2005 to complement Black Friday and encourage people to shop online. It’s now one of the biggest e-commerce days of the year.

2. Record Sales: In 2022, U.S. consumers spent over $9 billion online on Black Friday, setting new records for e-commerce.

3. Thanksgiving Creep: Many retailers now start their Black Friday sales on Thanksgiving Day itself, blurring the line between the two holidays.

A Thought to Reflect On

While Black Friday has evolved into a day of consumer celebration, its history serves as a reminder of the unpredictable nature of economics and human behavior. From financial collapse to marketing brilliance, the term “Black Friday” encapsulates a fascinating journey through American history.

So, the next time you’re standing in line for a Black Friday deal, take a moment to think about how this day came to be—and how far it’s come from its origins in the chaos of 1869.

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