Saige Angrick
Mrs. Straub
5/23/14
The Economics of
Memorial Day
With
Memorial Day this past week everyone thinks about the fact that not everyone is
celebrating for the right reasons. Many people just use this for an excuse to
go out and party and spend some time with your family when in reality it should
be about our soldiers and everything that they have done for our country. The
reality is that there is much more to Memorial Day than the remembrance of
soldiers the economy of the United
States is in a way reliant on this holiday. Memorial Day has always been
known as the unofficial start to summer in which many families will start to go
on their summer vacations and have to fill up their gas tanks with the prices
at their peak price of the year.
For many economists this is how they will decide how the rest of the year will do.
From how much people party and barbeque and do all sorts of other things this
will only grow when it comes to the fourth of July and other summer holidays.
For the government the opportunity cost
will be $700 million because the majority of the federal workers get a paid
vacation on Memorial Day. The government has such a giant opportunity cost when it comes to the work that could have gotten
done in that one day but since this is
federal holiday all of these people and millions of other people who are
also getting paid vacations are going through the same problem of choosing what
do this on their extended weekend. This
will just add to the national debt and
deficit because this has been planned before and is part of the budget at
the beginning of the year. According to dailyfinance.com it is estimated that
this Memorial Day weekend will show a 3% increase in retail sales. Since there
is also a much higher consumer
confidence this year the food sales will be up about 14.8 billion dollars
from last year. Since so many cities are
reliant on their tourism through the summer many cities are hopeful since this
year because many more people are willing to go on vacations now that the economy is on the upswing. The meat
industry is also starting to struggle after a long winter with so many people
eating less meat the season of grilling is finally upon us and the meat
industry is looking forward to the
increase in prices and sales through the summer. The price is going to go
up because of the demand for meat at
this time of year. Without a grill many people cannot grill and with people
buying a new grill about every 2 years grill sales are expected to grow 10.7%
by the year 2015. This will add to international
trade because imports of grills alone added up to 2.33 billion dollars. The
use of public goods will also rise
at this point because now more than ever places like beaches and parks. All of this helps the economy and proves that
in a way the economy in a way is reliant on Memorial Day and other summer
holidays.
No one is thinking about the
economics of Memorial Day while it is happening they are just enjoying the
smell of delicious food and eating the food that is front of them. The truth is
that although no one is thinking about economics while they are celebrating
Memorial Day without economics Memorial Day most likely wouldn’t be able to
happen as well. The thought of how dependent on this small holiday is scary in
the thoughts on not knowing what will happen if this holiday were to go away or
if people were to stop celebrating this holiday.
It totally makes sense why Memorial Day helps the economy. It would have been interesting to compare other holidays to this one just to see how much of an impact it has on the economy. Food is a big factor to Memorial Day and it's astonishing to see how grill prices rise 10.7% along with meat. That could get expensive. It is a shame, though, how some people forget the true meaning of this holiday- it's not just about food.
ReplyDeleteI had no idea how many grills were imported, that number is pretty incredible. Considering grills last a pretty long time, and not everyone wants or even can have one, depending on their home. And while the US economy has a pretty large reliance on Memorial day, it sometimes loses it's meaning as to why it's a holiday in the first place, which is of course to remember the deceased troops.
ReplyDeleteI think your post was really interesting and timely. I never thought about the economic importance of Memorial Day and how it can be used to predict the economy of other summer holidays like the Fourth of July. I was also surprised about how much the government spends on Memorial Day being a paid day of vacation for many of it's workers and I kind of agree that that is definitely adding to our national deficit, however people do work hard in our country and deserve that time off paid. Overall your post really encompassed the entire idea of the economic importance of Memorial Day and its effects on our economy.
ReplyDeleteAnother factor to consider with Memorial day is all the travel that people do to visit family over the long weekend and spend the holiday together. Gas companies and airline companies also make a lot of money over this weekend. However, this economic impact is not just limited to Memorial day; all holidays have a significant impact on the economy.
ReplyDeleteI know you mentioned that the government is now in an “upswing” which should promote higher growth and spending that last Memorial Day, but by how much? How much did this memorial day really compare to last years? Also, you said that another big part of Memorial day weekend is families traveling due to the nice weather, and kickstarting summer; are there are places in particular that prosper more during Memorial day weekend?
ReplyDeleteAny time that America has a major event like Memorial day there is bound to be some kind of large impact. However I never would have though that Memorial day had this kind of an influence. The sales are far more than I would have thought a day like this would have. While grill sales are not all for Memorial day they are very long term. To think that that many are bought each year is strange.
ReplyDeleteAlthough I myself do not party much on Memorial Day, I know numerous friends and families that do. I never really thought about how much of a kick-start Memorial Day is to the summer, or about how much money people are spending. I can't even imagine how much money was spent on food and decorations for Memorial Day. However, even though grill sales and meat sales are going up, I'm starting to notice that restaurant sales are decreasing. More people are wanting to grill out for dinner instead of eating out somewhere. This is causing less of a need for employees which could result in people losing their jobs. Although the likely-hood of this happening is slim, I think it's definitely something to think about.
ReplyDeleteI really enjoyed this article! My family is definitely a family that gets together for Memorial Day with a party and a barbecue. It really is a holiday that starts off summer and gets everyone excited for summer trips and summer parties. My family has many veterans in it so we do use the day not just to have a great family get together but also to thank the veterans. Every few years we do travel up north with other relatives so I see now why so much gas is purchased as well as the food. I agree with your comment that we rely on this holiday because it is such a popular day to spend money. It sets the tone for the rest of summer. Great article!!
ReplyDeleteClearly Memorial Day, like any other American holiday, has a very influential economic impact. During almost all holidays as you stated travel increases, which not only brings in revenue for gas stations, but restaurants and hotels alike. However, one possible downfall to all this traveling and consumption of alcohol is the increase in accidents that could have been prevented if good judgement would have been taken. This is why police officers and fireman are working full force during the holiday season, which poses the question if the holiday is really worth the economic cost,
ReplyDeleteI see where you’re coming from Collin and I do agree with you. When you have American holidays, you have tourists, and lots of alcohol. This isn't necessarily a good thing, but it has become a tradition. Fortunately though, for America’s economy it helps out. In my opinion I would say that holidays, such as Memorial Day are definitely worth the cost.
DeleteI did not know that the revenue from certain items could help predict the future sales of that item. All holidays in America have the same type of impact. After all is said and done, the money is still being spent on gas to travel, and money is still being spent on food and gifts. Whether its Christmas or Memorial day. All holidays are important in influencing our economy positively. The money spent on items towards the holiday all contribute to the economy.
ReplyDeleteI have never really ever taken a second to look at and examine the economics that back Memorial Day or any holiday other than Christmas to be honest. I definitely think that it was interesting how you included what the government looses on this holiday. That is a high opportunity cost for the government but obviously the overall economy must be benefiting since this holiday has continued for so long.
ReplyDeleteIt makes perfect sense to say that the market does especially well during this holiday considering there is a need for cookout food or food for family parties, there are families traveling to see their loved ones, and then of course there is the one negative thing; the consumption of alcohol. This is good for the economy but bad for the probability of accidents and deaths. It's just like new years, or an other holiday where people enjoy partying. All this money spent on celebratory items, goes directly into fueling the economy.
ReplyDeleteThe fact that millions Americans spend their memorial day drinking and throwing parties is disrespectful to the hundreds of thousands of troops that risk their lives to keep us safe. The government doesn’t like this holiday because they will apparently loose 700 million dollars because of workers on paid leave. The fact that they would rather have people work on a national holiday rather than having them spend time with their families and pay their respects to the troops is just not fair.
ReplyDelete