Isabelle Herdeman
11/28/16
Mr. Reuter
A2
How Christmas Affects the Economy
With Thanksgiving being last week, Christmas is now in full swing and people are really starting to get into the holiday spirit. Between food, decorations, presents and other holiday necessities people tend to spend an astronomical amount of money. There are many different ways in which the economy is affected by the Christmas season.
Christmas has a large impact on the economic stimulus for many different places around the world and rakes in a ton of money for retail industries. Black Friday is a day when many people around the US do their Christmas shopping because of the deals that many different retailers have. According to the National Retail Federation, 154 million people went out shopping on Black Friday and 122 million people participated in Cyber Monday. The retail Industry made approximately 3.08 trillion dollars in 2013, and has been increasing since. People have spent more money on christmas gifts over the years.
Another aspect of christmas that brings in a large amount of money is Christmas trees. Whether you buy a real or fake Christmas tree almost everyone gets a tree to put up in their house to decorate for the holiday. During the Christmas season there is obviously a large demand for chrismas trees which means there will also be a large supply as well. This year there was approximately 35 million christmas trees sold, 22 million real trees, and 13 million fake. More people tend to buy real trees because they tend to cost only around $40 while artificial trees cost about $100.
Lastly, Christmas vacations greatly affect the economy because of the amount of people that travel for the holidays. During the christmas season the airlines tend to bring in alot of money because they raise their prices, due to so many people traveling. This is the peak of the travel time for many people so there is much more demand for airline tickets, causing the prices to fluctuate.Overall airports make alot more money during the christmas season because so many people travel for the holidays and the airline ticket prices are raised.
Overall Christmas can add up to be a very expensive holiday, but everyone still celebrates it and will always celebrate christmas. Between trees, decorations, presents and airline tickets, you end up spending a large amount of money. However, people are willing to spend some money to have an amazing christmas holiday season.
Works Cited
The Atlantic. Atlantic Media Company, n.d. Web. 28 Nov. 2016.
J.Taylor, Omaha NE. "The Economic Impact of Christmas Shopping." Teen Essay About U.s. N.p., n.d. Web. 28 Nov. 2016.
"Real vs. Artificial Christmas Trees." Difference and Comparison | Diffen. N.p., n.d. Web. 28 Nov. 2016.
Stribling, Richard. "Economic Impact of Holiday Season." Business Insider. Business Insider, 2011. Web. 28 Nov. 2016.
Wilson, Jamar. "Topic: U.S. Christmas Season." Www.statista.com. N.p., 2015. Web. 28 Nov. 2016.
With Christmas being such a large holiday it makes sense why it would make a noticeable difference in the economy. Many people go out and shop for presents, lights for decoration, and well decorations. This holiday really is where stores are able to make a come back to turn out a large some of money. Profit is important and key for these stores and it is important for them to come back from their recent years loses. In all it makes sense why Christmas makes a difference in the economy and you did a good job with your writing.
ReplyDeleteI never knew that there were that many trees sold each year for Christmas. However, I think that most people actually buy real trees because it’s either a family tradition or it just puts the people into more of a Christmas spirit. I don’t think they buy them because they are cheaper because after buying a real tree for three years in a row, you’ve invested $120 versus a fake tree that would only cost $100 over the three years. Either way, there sure is a lot of money brought in from Christmas trees alone.
ReplyDeleteWhile spending for Christmas and the other holidays around this time is popular, it is interesting to see just how much people do spend and in what areas. The most intriguing part was how the demand for Christmas trees is so high, so they make more and more are grown each year to supply. Another factor that does not necessarily correlate with people’s rationale for purchasing real trees, that they are cheaper, is that they have to repurchase a new tree each year whereas artificial trees can stay for as long as you want. More money might be brought in by people buying new, real trees each year, but the consumer might find it more useful to purchase a fake one to spare their budget and spend on a few other things instead.
ReplyDeleteI don't think people are spending this large amount of money just because it is around a holiday. I think people spend that much money just to be with family that isn't close or just to make people happy. Which should happen even if there wasn't a holiday around this time. However some people are just spending money so they fit in with the holiday season.
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ReplyDeleteIt’s interesting how christmas shopping starts all the way back to the day after Thanksgiving. Our society is so involved in the christmas spirit that we all force ourselves to participate in christmas festivities before December is here. Although Black Friday is a continued tradition, the deals aren’t all that great. It’s more of the concept that christmas is near. Black Friday has become too big of a deal taking away from the true meaning of these holidays. Also, even though real trees are less money, fake christmas trees allow reuse meaning in the long run people will have spent less money on fake trees compared to real trees. Overall Christmas is a holiday of constant spending which leads people away from the true meaning of spending time with their families and celebrating christian beliefs. By being in high demand of shopping, it gives markets and businesses a chance to raise their prices, ripping people off.
ReplyDeleteI agree with this because it is true that people spend more money on holidays and especially during Christmas because everyone got to buy gifts and also spend money on decorations. So I understand why the money spending goes up every year. Even though I knew that the money goes up every year I was still surprise of how much money is spent. Overall is it is true that the Christmas is expensive, but even though it's expensive everyone still celebrates it because the holiday is being celebrated once a year.
ReplyDeleteChristmas is usually the most anticipated and most expensive holiday of the year. It makes perfect sense for this holiday to be the most profitable for businesses and very expensive for customers. Individual families can spend more than thousands of dollars buying presents for relatives and loved ones. This is important for businesses especially because it gives them a great opportunity to make profit very quick. Black Friday is an essential part of the our nation’s economy as well. One day generates more revenue that practically any day throughout the rest of the year. Companies purposely downmark these products to bring mass amounts of customers in. Regardless of the holiday season, businesses thrive off of people deciding to put a good amount of money into their families.
ReplyDeleteI agree, that during the Christmas season, it can be expensive and get very costly, which can make a difference in the economy. In fact, a lot of people just love getting into the Christmas spirit, so for many, money will be leaving peoples pockets. Though, people have their priorities to get done and may travel to see family, which is even more money.
ReplyDeleteI appreciated how much you included about the Christmas holiday season and all that economically goes into the season. It does seem that right after Thanksgiving most Americans dive right into the purchasing of gifts for loved ones, putting up the trees by the fireplace and visiting loved ones across the country. I already personally know the expenses I’ve made the in the last week for the season, such as gifts for my future baby cousin, having family friends fly out from California for Thanksgiving and decorating the family tree. Additionally to the holiday season, Americans purchase inflatables for the yard, lights for the trees and all the money spent on hundreds of millions of holiday Starbucks drinks. All in all, I do agree that the holiday season in December is incredibly expensive, but the fuel it provides for our economy is a huge benefit, besides the presents from Santa.
ReplyDeleteAs the article well states, it is logical for the supply and demand for Christmas related goods to be ever-increasing as the Christmas season draws near. As both our population and inflation rise, prices for all of our beloved Christmas goods are as well always growing, and therefore the revenue for Christmas increases. Merchants take full advantage of the jolly season, even for those who do not celebrate Christmas. For example, even if you do not celebrate Christmas, you can still enjoy a holiday coffee drink and participate in all the seasonal sales and parties. This season also exemplifies and provides seasonal employment as the demand for Santas, elves, and additional holiday workers as the days wind down towards Christmas. Thanks for writing !
ReplyDeleteWhen looking at the graph I was surprised to see what people actually spend during Christmas for gifts. However I do see how people could spend that much with all of the deals that are going on. I was also surprised at how many Christmas trees have been sold so far. I never realized that more people buy real vs. fake trees. But you would think that more people would buy fake trees because you normally keep them for years and years which would save money while buying a real tree each year would just cost you more and more.
ReplyDeleteI liked your statistics and numbers showing how much Christmas trees are actually bought during the holiday season. I agree that Christmas is the time of the year that people spend the most money to buy gifts for their friends and family. There are also a lot of spending that goes into decorations like trees and lights and also vacations are a big expense. The expense of travelling also might not only be for families going on vacation to a warmer climate but also the expenses involved in college kids coming home to spend the holiday season with their family.
ReplyDeleteChristmas is my favorite time of year (like many people) and this was an interesting read. The statistics on how many people participate on Black Friday and Cyber Monday was astonishing to me. While many people go out to go and by presents for family and friends, I wonder how much of the shopping done is for themselves? There has to be a lot of people that still go out during the month of December to go buy Christmas presents - it would be interesting to find a statistic on that. In addition to that, I wonder why people would spend $40 a year on a Christmas tree that is a live, rather than an artificial tree at around $100 because you can reuse artificial Christmas trees from year to year. While I know many people buy real trees because of the aroma they give and fill the Christmas atmosphere, I wonder if people really do compare the tradeoffs for buying a fake tree.
ReplyDeleteI can agree that Christmas is the time of year that people spend the most money, as an avid Cyber Monday shopper, I really enjoy this time of year and all the great deals that places are having. I also know a lot of people who travel for the Christmas season and students who travel home for the holiday's (or families) which can add to the cost of the "most wonderful time" of the year. I can say, while looking at the graph I was shocked at how many people actually spent on Christmas gifts, however I wasn't too surprised as most stores had deals going even before Black Friday. Overall, I really loved this topic, because it showed how much some of the most celebrated holiday's actually cost.
ReplyDeleteEven companies who don’t sell things like trees and wreaths benefit from the holiday. Think of Starbuck, with their holiday themed cups and other restaurants with Christmas specials. Deals that continue beyond just Black Friday and lead up to the holiday. Not to mention the never ending Christmas sales businesses will have to try and pull more shoppers into their stores. It always seems like Christmas is a time to buy things for yourself as well as others, because of the savings.
ReplyDeleteI am not surprised that the Christmas season impacts the economy so much, it is the time of year when people go out and buy the most items not only for them, but for everyone else. However, in this article, you mentioned some parts of Christmas spending that I had no really thought of, such as Christmas trees. I have always had a fake tree, but in this article, you stated that real trees seemed to be favored more. And if people are buying a real tree every single year rather than keeping a few tree for multiple years, that can really bring a lot of profit during the holidays. Also, I didn’t really think of the fact that many people are travelling for the holidays. I mean, people travel a lot at any point in the year, so I think it would be interesting if you found a chart to show how airline prices and purchases actually fluctuate between Christmas and the rest of the year.
ReplyDeleteChristmas is an obviously expensive time of the year. Usually when I think of Christmas expenses, I tend to think of just the gifts rather than everything else that was brought up, including the trees, travel expenses, and decorations. The demand of all of these things increases greatly as the year goes on, so the price increases to follow the law of demand. The supply will also increase since prices are rising, following the law of supply. Travel expenses also skyrocket at this time of year. Many people travel home to their families, such as college kids or long distance relatives, or others will go somewhere that has a different climate as where they live in order to enjoy a change in the weather. Airlines are very aware of the increase in travel, so they raise the prices to follow in order to increase their revenue. The Christmas season can also be difficult for many people, especially some that are experiencing seasonal unemployment if they live in an area where it is snowy and their job is based outdoors. A lower income can make it hard to purchase the normal Christmas items. Luckily there is a such a broad diversity of companies that sell items in the market that there is the invisible hand of competition to keep prices some what affordable for almost anyone.
ReplyDeleteIt's crazy how the preparation for Christmas starts so much earlier than the day itself. I agree that people who do celebrate the holiday put forth a lot of money in order to make it special. Since it is such a widely celebrated holiday across the country, this is the time for companies to display their Christmas items and sales. Events such as black friday tend to get people into the spirit of Christmas as it indicates how near the holiday is. Although the deals aren't always that great, many tend to go shopping because of the excitement. Not only is shopping a big deal, but I also do agree that things such as transportation weigh heavy when it comes to cost. Given that this is a holiday in which is meant to be spent with family, many are willing to pay large amounts of money in order to accomplish that goal. Another thing that I hadn't really though of until I red this was the tree sales. In my family, we have a fake tree that we use every year. However, to those families who purchase a real tree every year, it can impact the tree providers in a major way. Since everyone wants one, they can make the prices unreasonable, and still have a significant amount of people purchase them. Overall, Christmas is a time that people tend to put forth a lot of effort and money towards. This makes it a great time for companies and businesses to take advantage and raise prices, resulting in numerous benefits for them.
ReplyDeleteThe holiday season definitely brings increased revenue to the market because of the immense amounts of seasonal products. Decorations, food, vacations, and holiday activities consume the minds of people in November and December. The scarcity of these products and increased consumer taste is what increases the demand for these products during the season. One thing that is interesting to think of though, is that not everybody can afford the amenities of the holiday season, not everybody is waking up to a ton of presents under the tree Christmas morning. Now, they have created many nonprofit programs that give gifts to kids of families with not a lot of money. Yes, it may be at the cost of giving people who don’t work hand outs, but after all giving is in the holiday spirit and I think the marginal benefit of happy faces outways the cost.
ReplyDeleteI really liked how you took a national holiday and analyzed what really happens during it. I like to see how much people really do spend annually around this time of year. It's very interesting how spending has increased due to the fact that companies are continuing to produce more products that 'add' to the Christmas experience.
ReplyDeleteAs you said, Christmas is such an important holiday that immensely affects the economy. It doesn't surprise me that the amount of money that is spent is as high as it is. This is partially due to the fact that parents have the tendency to buy their children technological gifts such as the new iPhone, tablet, laptop, etc. Personally, I know that I'm going to be spending hundreds of dollars this year since I'm buying my sister a 3DS that she's wanted for years plus games. That gift alone is costing me a lot. Not to mention everything else I'm planning. However, what always surprises me though is how early some stores start their "Christmas bargains". I understand that most people want to get their lists done before Santa appears in malls, the item they want to buy goes out of stock, or anything else that can possibly happen, but most stores I go to have been ready for Christmas right after Halloween ended.
ReplyDeleteI have never actually thought of all the economics behind the holiday season. I just enjoyed the time off and spending in with family and friends. It is interesting to see how much spending and demand for goods increase in the holiday season. I can´t imagine how much the prices would rise if they don´t increase the supply to match.
ReplyDeleteWhenever Christmas comes around I don't realize how big of a time economically it is. The truth is Christmas along with black Friday is the busiest and most profitable season of all. Businesses can rack in a lot of money if the market and price their items well. What surprised me, was how well Christmas trees sell. I know many people who don't have or use a tree, and didn't expect those numbers to be that high. The biggest thing I learned was how much Christmas trees impact holiday economics.
ReplyDeleteThis is not only a clear example of the effects of supply and demand, but also the effect of various market structures affecting the market. For example, airline companies, which typically are considered monopolies are able to price discriminate more and so earn more money since holiday travelers are less responsive to price.
ReplyDeleteI agree with your post and many of the comments about how Christmas is the most expensive season. Christmas has been increasing profits in many stores for years as getting more gifts for each other became popular. I would like to see representation of how much Americans used to spend on Christmas in the early 2000's compared to now. I find the amount of gifts we give to one another is outrageous because the holiday season is about being with one another. Now Christmas is about getting the best gifts for the best deals. Technology is becoming more incorporated into our everyday lives, so gifts like XBox's and TV's are in a higher demand. Those types of items are extremely pricey, but it's the type of gifts we are now giving one another.
ReplyDeleteI haven't thought of Christmas on an economic perspective, and I find it interesting how big this holiday is for the economy. I agree with your post, and I find the idea of getting real trees over fake is rather true. The demand during the holiday very much affects the profit for the stores and Christmas helps with that greatly. I can see why stores stock up during Christmas and not very much on other holidays. I also found it interesting about your graph--how much people actually spend during Christmas and how it has increased and decreased over the years. I think people's purchasing will keep increasing slowly or constant because of the new technologies and options for gifts.
ReplyDeleteBecause there's such a huge surge in the economy during Christmas time, companies have to plan ahead so that they can order the right amount products. Because demand is relatively inelastic since many people find Christmas gifts and visiting the family for the holidays and nonnegotiable budget item, they are willing to pay the price that many retailers set. That makes it the responsibility of the retailer to order the right amount of product. In the short run, supply is relatively inelastic because product have to be ordered about six months in advance. This means that each firm should look at both their own costs and sales as well as the over all economy and the purchasing capabilities of their customers well in advance to correctly predict the trends of the next holiday season. If a company ordered too much product they would spend more money than they are making and incur losses, but if they do not order enough product they will experience shortages and possibly lose many customers who cannot buy what they would like from those companies. Because Christmas is such a large source of revenue for many companies, it is important that they find the right amount to supply for each season
ReplyDeleteThere are so many aspects of Christmas that bring in revenue such as the ones that you mentioned, but so many more also. Christmas draws a lot of attention in terms of a holiday so it makes sense that it has a large economic impact. Not to mention that there are other holidays celebrated during the month of December and those contribute to the economy as well. Decorations and presents take over stores during the end of the year and will continue to be seen all over towns as late as even February.
ReplyDeleteChristmas is clearly the dominant winter holiday in the United States, so it definitely is no surprise that it is a huge money maker for many companies. Throughout the entire year, companies are preparing for this holiday because it is so huge. It doesn’t just affect tree markets or markets for the decorations, it affects so much more. The demand for certain items is just so much higher that companies know they will be able to raise their prices and that the items will still be bought. This is due to the shift along the demand curve. Overall, companies definitely have a strategic approach to how they sell things around the holidays, and they are very successful with it.
ReplyDeleteIt is not surprising that Christmas shopping stimulates the economy as much as it does. It is a time when everyone is buying gifts and many stores anticipate that, especially when Black Friday hits. After that, there are many sales going on to take advantage of all the shoppers during the holiday season. The supply and demand both go up that create many profits for stores.
ReplyDeleteCommercialism is at the top of its game this time of year. Companies make a lot of money since everyone is buying presents for family and friends. It’s not surprising that demand would increase for seasonal items, since they are only available this time of year. Especially when looking at christmas trees, it’s not like people will get one in May, so it makes sense that demand and supply would increase towards the end of the year. I, however, didn’t realize that more people buy real trees. I always thought real trees would cost more, but that’s not true. Also, stores are always busy in December. I think Christmas is a great way for firms to increase their profits, but I feel like there would also be more competition for the customer and for the sales. As a consumer, it’s not super great shopping with the crowds, but as the firm it must be a really good time for them.
ReplyDeleteI completely agree, the market for lights, and ornaments, and trees are very high at this time of the year. with this being said when it comes to buying Christmas trees there's always a dissension weather to get a real or artificial tree. The Market for artificial for 2016 is higher when it comes to getting different colors due to social media showing different people how to color coordinate the decorations with your tree. It seems to become more popular because people don't want the same boring green tree that they always have, they want more.
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