Economics of Christmas

Christmas is typically the largest annual economic stimulus for many nations. Sales increase dramatically in almost all retail areas and shops introduce new products as people purchase gifts, decorations, and supplies. In the U.S., the "Christmas shopping season" generally begins on Black Friday, the day after Thanksgiving, though many American stores begin selling Christmas items in October and early November.[37]

In most areas, Christmas Day is the least active day of the year for business and commerce; almost all retail, commercial and institutional businesses are closed, and almost all industries cease activity (more than any other day of the year). In England and Wales, the Christmas Day (Trading) Act 2004 prevents all large shops from trading on Christmas Day. Scotland is currently planning similar legislation. Film studios release many high-budget movies in the holiday season, including Christmas films, fantasy movies or high-tone dramas with high production values.

Most economists agree, however, that Christmas produces a deadweight loss under orthodox microeconomic theory, due to the surge in gift-giving. This loss is calculated as the difference between what the gift giver spent on the item and what the gift receiver would have paid for the item. It is estimated that in 2001 Christmas resulted in a $4 billion deadweight loss in the U.S. alone.[38][39] Because of complicating factors, this analysis is sometimes used to discuss possible flaws in current microeconomic theory.

Other deadweight losses include the effects of Christmas on the environment and the fact that material gifts are often perceived as white elephants, imposing cost for upkeep and storage and contributing to clutter.[40] This is mitigated by white elephant gift exchanges in which participants make the best of their white elephants, and by alternative giving. Some people have taken to selling their unwanted gifts shortly after Christmas on online auction sites.

Modern commercialization

See also: Christmas controversy

Since the late 1800s the economic importance of Christmas has led to concerns over what is seen as the increasing commercialization of Christmas. The 1823 poem A Visit from Saint Nicholas had popularized the tradition of exchanging gifts and seasonal Christmas shopping began to assume economic importance.[41] In her 1850 book "The First Christmas in New England", Harriet Beecher Stowe wrote a character who complained that the true meaning of Christmas was being lost in a shopping spree.[42]

The importance of the economic impact of Christmas was reinforced in the 1930s when President Franklin D. Roosevelt proposed moving the Thanksgiving holiday date to extend the Christmas shopping season and boost the economy during the Great Depression.[43] Religious leaders protested this move, with a 1931 New York Times roundup of Christmas sermons showing the most common theme as the dangers of an increasingly commercial Christmas.[44]

In 1958 Stan Freberg and Daws Butler recorded the audio theater satire Green Chri$tma$, recasting Ebenezer Scrooge and Bob Cratchit in the roles of advertising executives. Due to the controversial nature of the piece, it received no commercial airplay until 1983.