Thursday, February 16, 2017

A Hallmark Holiday

A Hallmark Holiday
Eden Lochner

Whether you’re one of those cynics who thinks Valentine’s Day is just a holiday ginned up by the card, flower, and jewelry industries, or whether you go all in with the hearts and chocolate, you might be surprised to learn about the demand of Valentine’s goodies: how much people spend—and who spends the most.

According to the National Retail Federation, only about 55% of Americans celebrate Valentine’s Day, but those who do will shell out an average of $146.84, up a few bucks from last year’s average of $142.31. In total, Valentine’s Day total revenue is expected to hit $19.7 billion this year.

What are American lovebirds buying for that money? Flowers, trinkets, and candy of course—we’ll spend $1.7 billion just on sweet treats—but also $4.5 billion on romantic dinners out and tickets to movies, shows, or other attractions. About a quarter of respondents say they’ll give experience gifts this year, and almost half acknowledge that they’d like to receive such a gift.

Just over 90% of respondents are buying Valentine’s Day gifts for their significant others—and spending some $12 billion in the process—but it's not just romantic partners who feel the love on this holiday. We spend an average of just under $28 each on cards, gifts, and other expressions of sentiment for family members like kids and parents. Another roughly $7 each on kids’ teachers and classmates, and nearly $6 each on coworkers. When people don’t participate in the Valentine’s holiday, their opportunity cost is missing out on making people happy and endearing them to you.

56 comments:

  1. I agree that it is crazy how much people spend on Valentine's Day. Why pay for overpriced chocolate and flowers when you could get them practically any other day of the year for less than half the price? People seem to forget that little gestures make all the difference, and that a $146.84 gesture might not even seem as meaningful. To stay in a healthy relationship, you need to show love throughout the year, and not just on the day that Hallmark says you should.

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  2. That's an interesting opportunity cost for this case. An individual would have to decide not which of two things do they want more (like choosing between a delicious, expensive bread, or a so-so, reasonably-priced bread), necessarily, but whether they would rather spend their hard-earned money to make people happy or to keep that money for themselves and not make a positive impact on someone's day.

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  5. The numbers for this are very interesting. I had no idea how much Americans actually spend on average each Valentine's day and that number is astounding. I myself not really being that big into the idea of Valentine's day am amazed at how much corporate America makes on just this one day. It would be interesting to take a closer look on how they determine the demand for certain products such as cards and then see how they supply it so they don't run out. However, it is always a good reminder that Valentine's day is more than just a way for companies to make more money and that it is truly another way to make your friends and significant other happy.

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  6. I did not even think about how much money people actually spend a year on a holiday that only 55% of people actually celebrate. The average money people spend isn't even what surprised me the most, it was the total of everyone combined. Just imagine if Valentines day wasn't a thing because not everybody has someone to spend it with. We would be losing 20 billion dollars almost. Its crazy how one day can bring in so much money.

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  7. I find it surprising that 55% Americans even celebrate Valentines Day. People should not spend a crazy amount on candy and flowers just for this "special day". If the world was perfect everyday would be Valentines Day.

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  8. This holiday is insane with how much people buy to prove to their significant other that they love them. But I don't think people should be going out spending this much money on one day. I think that throughout the year people should be proving to their significant other that they love them. With that being said, it is ridiculous how much money is spent for this one day that happens once a year. And it doesn't help that stores tend to bump up their prices on these items for this specific day.

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  9. Valentine's Day can be a very expensive day for many people. The demand for Valentine Day gifts is so high because everyone feels an obligation to get something for their loved ones. Giving gifts on this day can make people feel good, but it comes at a cost. It's interesting that the average of $146 is spent by each person participating in Valentines Day.

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  10. (Note, the removed comments are because I thought I made a typo, fixed it, and then realized the original was actually correct...)

    While I think it's not too difficult to measure specific Valentine's Day type gifts, I wonder what counts as "spending towards Valentine's Day" because I think a lot of things could fall under the category besides just the typical chocolate or card. People also buy more conventional gifts for each other, and sometimes people make their own sweets for each other as well. Would all the ingredients of cookies for instance be included in such a graphic? I wouldn't think so. So I think it's sort of a hard thing to gauge the specifics when there's a lot of ways Valentine's Day activities and purchasing can relate to the economy.

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  11. The numbers and statistics shown here do not surprise me at all. Personally, I am not a huge fan of this "holiday" given that I firmly believe that it is just a cash grab by corporations. But unfortunately we live in a time where we need to show how much we love or appreciate someone through monetary or material gifts. Sure, we spend a lot of money, but it isn't like we can just stop buying. With every year passing, there will always be someone we need to get something for, whether we believe in it or not.

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  12. Valentine's Day is a very important day for many people, but the average that people spend for their significant other is very high. Many people feel like they need to buy expensive gifts to show their love. The amount that is earned by Valentine's Day is very surprising to me, because I never would have thought that it is that much. I'd much rather surprise or be surprised throughout the year with gifts instead of one day where many people feel like they need to buy gifts.

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  13. A lot of the statistics you brought up about the general spending of Valentines day surprised me. When you said the average spending was over $146 I was extremely surprised. That's a lot of money to shell out for a holiday that a decent amount of people don't even celebrate. Although, I am impressed with all the corporations that have been able to get a revenue of almost $20 billion out of this day, that's a very good return on investment no matter what they're putting in if they can get that back on one day.

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  14. I think it is crazy how much people spend on this holiday. I work at Walgreens and almost every person I check out at the register has something Valentine's Day related they want to purchase. The people who don't buy thing for friends, family, or significant others are missing out on the opportunity cost of making someone's day. The people that don't have anyone to buy things for are benefiting because they have more money to spend on themselves.

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  15. I am really shocked at the percentage of people who celebrate Valentine's Day in the US -- it's actually more than I thought. But, I am curious as to what counts towards Valentine's Day revenue. What if someone is buying chocolate for a recipe? Or buying flowers for a funeral? What about a dinner with a colleague on February 14? I think that some of the statistics, as probable as they seem, could be a bit off in assuming that all chocolates, flowers, and dinners within the week of February 14 are dedicated to Valentine's Day.

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  16. I agree that while Valentine's is unnecessarily blown out of proportion often times, it is nice to be able to show your loved ones you care. I was not surprised at all, to see that a portion of the money being spent is on family members and friends. However I believe that the amount of money spent on this holiday is far too high, and should not just occur on this one, crazed holiday.

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  17. Reading this whole piece I learned a lot more than I thought I ever would about Valentines day. It was interesting to see the financial aspect of it all, and see how much people truly spend not only on their significant other, but other coworkers and peers as well. I was very surprised to see that we are spending around 19 billion dollars on all of the gifts.

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  18. I knew people were spending a lot of money on this holiday, but I must say that I did not expect the total to be in the billions. I would like to see the total in jewelry purchased. I'm sure that would be quite high as well.

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  19. It’s crazy to think that people spend THAT much money on valentine’s day gifts both personally and as a country. However I was kind of surprised that only 50% of the country participates in these events. Not that I thought everyone did, but kids in classrooms, parents at work, and elderlies in love in my mind all participate in Valentine’s day activities. I think it would be very interesting to look specifically into flower shops in February to see if they make the most revenue that time of year. At the end of the day, even if Valentine’s day is kind of dumb, the creators really did find a good way to get a lot of money over a day of love - which should be able to be shown freely. It is likely that many participate simply to not feel left out, and the opportunity cost of not showing someone they love them outweighs the actual monetary cost.

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  20. It's crazy to see the amount of money that people will pay on this one single day of the year just because it has a "holiday title". Nevertheless, I think the opportunity cost that you talked about is worth it for many people. With the busy lives that people nowadays live, it's nice for many working people to have an excuse to go home early and spend time with their family and loved ones--even if the excuse is a "holiday title". Looking at your graph, the total US spending on this holiday dropped a significant amount between 2009 and 2010, so that makes me wonder: What changed in those two years that decreased the spending so much?

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  21. I knew that Valentine's Day was an expensive holiday, but I never realized that almost $20 billion dollars is spent every year for that day! I suppose it makes sense though, because I agree that the opportunity cost of not buying these treats and goodies, is that you will likely spend Valentines Day alone and annoyed at all the couple receiving lavish gifts. It's crazy to think of all the different ways that money could be spent, rather than purchasing candy or jewelry. Plus, I feel like some people have unreasonable expectations for Valentine's Day and what a normal gift should be, which is probably why people are spending so much. I think some people misinterpret caring with expensive jewelry, but really, all it takes is a nice handmade card to do the trick, and those are much more affordable too.

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  22. I think so many people celebrate Valentine's Day to celebrate their loved ones, and go the extra mile for one day to show their love. Spending money on dates occurs year round, but this one holiday is the day that everyone does it at once, which increases the demand for many love-related items/services. Although it is a "Hallmark Holiday", it's nice to take a day to show appreciation for loved ones. It's really a culture thing, because nationwide we know it's Valentine's Day and it's a day to show your love, so even if you don't celebrate it, you almost have to feed into it in some way by treating yourself to some chocolate, or even buying the stuff that's on sale the day after, once the demand for it is gone.

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  23. I never thought of Valentine's Day as a big money-spending holiday. Sure, people want spend money on their significant others, but I didn't realize how high the percentage was. Throughout all this data, I believe that the amount being spent is way higher than it should be. $19.7 billion is a lot of money to be spending throughout the brief 24 hours. Considering all the prices -- the demand is obviously significantly high during the day, as there are a lot of people at different places spending ridiculous amounts of money on a significant other. In fact, it's appalling how much demand there is for one day, and I am a cynic who believes that the amount being spent is insane.

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  24. I was a bit shocked that Valentine's Day has been increasing spending wise in the United States. Personally, I thought that Valentine's Day hasn't been celebrated as much as it has in the past. Although, I am curious to see how much individuals spend at any other time of the year for cards and candy to see the difference and compare sales from any other month versus February or Valentine's Day. Also, I was shocked that individuals spend an average of $146.84 on Valentine's Day. I thought that was a lot of money to spend on one day.

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  25. It is not surprising how much money is spent on Valentine's day. Here in American we are known for going above and beyond. Just like many Americans spend 500 dollars on a prom dress, spending 50 dollars on a large bouquet of roses is just another example of how Americans choose to spend their money; materialistic items. I think Valentine's day is great because love is in the air and people are usually more kind than other days. However, I think everyday we should show love to our families, friends, teachers, and coworkers and make our lives less materialistic and work harder to impact the lives of others. At the end of the day roses will die but a cherished relationship will last forever.

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  26. On Valentine's Day, I always see the gifts that people are buying for their loved ones all over social media, but I've never really thought about how much money is actually being spent. With such a huge demand for cheap candy, Valentine's day is great for the economy, and small businesses like restaurants and movie theaters. Although some people spend an excessive amount of money, I can't complain! It makes another person feel that much more loved. The fact that you mentioned that Valentine's Day gifts aren't always just for people's significant others' is a good point. I remember back in grade school when everyone would buy candy for the kids in our class. My mom is also a middle school teacher and she came home with all kinds of little gifts. I definitely think it's a good thing if our country continues to spend more and more money on this holiday.

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  27. I'm surprised to see the amount of money people blow on valentines day. Only for 55% of people taking part in the day that is a lot of money being put back into the economy for a day like valentines day -that's if it leaves out outside spending for other events going on that day. But like you said some peoples opportunity cost is holding back making someone's day happy and special, but some people could spend that money in a better way instead of overpriced chocolate and flowers.

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  28. I do agree that Valentine's day is a bit ridiculous and surprising with how much people spend on the people they are close to. It is roughly 19 billion dollars, not including the very expensive gifts that people get for their loved ones. According to your piece, this day seems a lot more valuable to the corporations selling the gifts, making all this money than the people that are actually celebrating this "holiday" with their close ones.

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  29. I am really surprised at how much people spend on Valentine's Day! I know that some people don't celebrate it or care for the holiday which makes the $146.84 average people pay, a crazy amount. I wasn't really shocked by the $1.7 billion we spend on treats, because I know that I am not the only one that just goes and buys the Valentine's chocolate. When I buy Valentine's gifts I always make my own cards because pre-made cards are so expensive. My opportunity cost might be that my card isn't of such high quality but it has more meaning and love to it. In total, I think that we might be spending a little too much on this Holiday.

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  30. I believe this article shows how much societal norms affects how we spend our hard earned money. The graph shows how from 2004 to 2015 we have seen an increase in spending on Valentines day gifts and activities. I think this increase in spending comes from the societal norm that if we truly care about our significant other that we need to participate in this "holiday" or else we will be viewed as a unloving person. This may even extend to other traditional American holidays like Christmas and Halloween where the vast majority of people miss the true meanings behind them, such as how Christmas should be viewed as a time of charitable giving and being together with family and friends.

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  31. I can't believe how much is actually spent on Valentines Day. 19.7 billion is such a surprising number but it is believable. I know my parents alone spend 30 dollars on each other buying flowers and candies trying to impress each other. I personally can't imagine spending that much so I usually stick to my premade cards. Either way I believe this expensive trend of Valentines will never go away; in fact, I think it will increase.

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  32. People don't really think about the financial aspect of Valentine's day and I didn't think that the amount spent would be in the billions. Personally, I think that cards and treats are overpriced, but it may be worth it to some people to show their love for someone else.

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  33. When people buy gifts for their significant other, family members, or friends, they tend to do it out of their love since it is "valentines" day. They don't typically look at the price tag but are in it for the experience- especially this year since experience gifts are the most popular. I didn't realize altogether that people were spending as much money on average as they do. It makes sense when you think about each component such as jewelry, candy/chocolate, and dinner. In all honesty I met the criteria for the average amount of money spent this year, but my benefit was greater than that cost.

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  34. I have seen a lot of debate on the financial aspect on Valentines Day. I personally can not see why there is so much money spent on just one day that is seen as a "Holiday" because of the title. I would not spend he amount of money that others spend, because if you really love that person then they would know and you wouldn't have to spend all of your money on them. However, I do understand why everyone does it. Also, this obviously brings revenue to businesses, and gains them more business during this time. Which is helpful to those individuals. With the technology in our time right now I believe that the celebration of Valentines day will proceed to grow and the spending will grow right along with it. There are expectations in individuals from things such as social media individuals will begin to expect more, which will obviously lead to more spending in the long run.

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  35. 19.7 Billion sounds like a lot of money, but let's compare it to Christmas. The amount of money spend on Christmas far surpasses the amount of money spent on Valentines. I agree, the amount of goods can be quite pricy, but the thing thats outrageous is honestly just the flowers. The flowers have always been the one thing that hits the bank account harder. Valentine isn't unlike its other holiday siblings, its an event for a business to make money, thats the truth. And while theres lots of money spent, there is plenty of love that goes around too.

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  36. I did not know how much each year American's spend on valentines day each year. I do not think that you need a date on the calendar to show love to your significant other and a specific date to buy treats such as flowers, chocolates and teddy bears. Acts of kindness like this should be done on your own without a calendar telling you this day specific is when you need to buy something nice. I personally think that this holiday is just another reason for hundreds of people to spend their money. My parents as an example do not participate in this holiday because my dad told me "I do not need a calendar to tell me a day to show my love and appreciation as I do everyday". Which I thought was even more sweet than all of the mushy stuff that is done on Valentine's day.

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  37. I knew there would be a lot of money coming in due to the holiday, but 19.7 billion is insane! This is good for those in the candy, chocolate, card, restaurant or other related businesses! Many do purchase items for other people, whether it is their significant other or not, but some do not. It would be interesting to see how many people actually don't purchase anything for Valentine's day because based on these numbers it certainly seems like everyone does! These numbers don't even account for the people who have a homemade dinner or a celebration that doesn't require any money on gifts. Truly, everyone seems to celebrate this holiday in some way. At least companies related to this industry have one day where they make a lot of profit.

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  38. I, honestly, never thought about how much people spent for their significant others in just one day. This really surprised me, not that people would spend that much, but because that many people actually did spend that much money on another person. I didn't realize that much money was spent overall on valentines day.

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  39. It is crazy how much people spend on Valentine’s Day especially when only 55% of people celebrate it in the US. People spend on average 142 dollars on Valentine’s Day. That’s around the average cost of your cell phone bill if you have 3 people using them. Imagine the amount of revenue businesses get from this. Most likely the boost their prices because of one special day. Not to mention the amount of people going out and buying these things. Imagine if that 55% was 100%. Valentine’s Day would be like Black Friday. The amount of money people would be spending is huge. The opportunity cost of Valentine’s Day is a lot for consumers.

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  40. It's crazy how much different parts of the economy have come to depend on a corporate constructed holiday and how confident they can be that they’ll be able to continue depending on it. The social pressures from marketing ploys made by businesses who now depend on a large income from Valentine’s Day essentially ensures that the demand for Valentine’s Day goods will never go away. Many couples now see celebrating Valentine’s Day with gifts and special dates as a necessity, and a lack of overspending can even lead to the end of a relationship. According to the 2015 US Census, 45% of all US residents who are 18 or older are single which is crazy when you think about the 55% of Americans who celebrate Valentine’s Day. Of course not everyone who buys Valentine’s Day commodities is doing it for a significant other, but this level of involvement in a holiday which is centered around couples when such a large portion of the population is single is astounding.

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  41. I think it’s crazy how much money, 19.7 billion dollars, is spent on this holiday, and I also find it surprising how people spend $146.84 on average. Personally, I think spending over $100 on someone for Valentine’s Day is kind of excessive. I could see spending money on a card, and chocolates or flowers, but the expensive gifts don’t make sense to me. I think it’s nice that people want to go the extra mile for their significant others to show them they care, but I think that can be done without spending so much money. In my opinion, it’s more about the little things, and not the diamonds and expensive gifts. Overall, I think people spend way too much money on Valentine’s Day, however, it does benefit the companies who make a big profit on Valentine's Day gifts.

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  42. It's amazing to me how much profit companies can get from a holiday like Valentine's Day. Just based on what I hear from people around this time, they expect to be taken out and flowered with gifts. I feel like this holiday was created for the simple purposes of companies making money off it. Cause we all know if there's a holiday where people get presents for simply being in love, that they will jump for that. To me, Valentine's Day is really unnecessary and expensive for no reason what so ever. So you're in love and want to celebrate it. Great. You can do that any day of the year, and not just Valentine's Day. If you are insistent on spending money for Valentine's Day however, they are many cheap ways to do that. First off, you don't need to buy chocolate, flowers, card, and stuffed animals. That's why it's expensive for a lot of people, they feel the need to buy everything together. Just pick one. Secondly, instead of a handheld gift that probably won't last (you eat chocolate, flowers die, you'll probably forget about the card and stuffed animal), why don't you go and do something cheap and fun instead. A lot of movie theaters, restaurants, and other entertainment places have cheap deals for Valentine's Day. Making a memory to me is a way better Valentine's Day gift then a useless present. And again, you don't need to do everything. Just pick one non-pricey thing to do. It's the people themselves decisions to spend so much on Valentine's Day. Businesses are just feeding off that. You yourself choose how much you spend on it. Besides, if you have a partner that demands gifts and an expensive night out, that doesn't sound like a very good partner to me.

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  43. I have always disliked Valentine's day simply because it seems like an easy way to make people guilty for not spending money. I don't think most couples actually enjoy this day because it just handing over money to companies who made this holiday for there benefit. However, no one wants to be the significant other who fails to provide flowers for their loved one on this love filled day. The opportunity cost of saving your cash is possibly ruining the day for your loved one or starting an unwanted fight. What would be interesting would be to find out what caused people to spend more in 2013 than in 2010 or 2004. Why is there such a random drop off in sales in some years vs. others? Was the year in general simply less romantic? Also what made 2017 such a hit for Valentine's day topping revenue at possibly 19.7 billion?

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  44. When the numbers are represented in this way, it's really impressive how much is actually spent each year. It raises the question of whether the spending is really worth it. What is the reason for this extensive amount spent on just one day versus another? It could mostly be pinpointed on the fact that since Valentine's Day is a holiday, it's also considered a go big or go home one as well, in most cases. Personally, spending upwards of $150 dollars on one specific day, when in reality this could be spread through random days of the week, month, etc. Essentially, my belief is valentine's day is pointless, until looking at it from a business aspect. The money made by companies who invest in products for this day, make tremendous amounts of money. People are willing to pay whatever the price is, and buy not only one thing, but a multitude. Factor in the money spent on going out to eat, as mentioned in the original posting, and the activities that couples partake in, all accumulates to a major flow of revenue. I agree in the aspect with Klaire that the amount of spending will proceed to grow over time, as prices increase, so will the amount spent. Overall, from the economic standpoint, and business standpoint, Valentine's day is impressive, and smart. But the personal benefit is completely up to the one who spends the money, and if I were, it would be considered mostly a waste.

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  45. The amount of money spent on Valentine's day is crazy. When people think Valentine’s day they don’t think about the money aspect of things however, clearly it plays a huge part in that day. On top of that to see only 55% of Americans participate in Valentine’s yet there is still that much money being spent. It’s unreal. If people spend this much on Valentine’s day I wonder how much is spent on Christmas?

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  46. Very interesting article Eden. I think your graphic is very interesting, as it is intriguing to see the dip in billions spent during 2009. This dip can obviously be explained by the recession that America went through during 2009. I also think it is very interesting how you explained the dispersion of money. It is not just couples spending money on this holiday for each other, but in fact people not even in relationships, like kids or co-workers, spend money on this holiday as well. It's crazy that some Hallmark made up holiday can bring many people to the store to demonstrate their love for others on February 14th. Interesting piece.

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  47. That is a lot of money. I think it is interesting that people will spend so much on for one day just to tell people they love them. I feel like you should make sure the people you love know you love them every day, not just on Valentine's Day. However, since this holiday brings in a lot of revenue, it helps our economy. Like you mentioned, people don't just spend money on their significant other, they spend money on their parents, and their kids, and their kids' teachers, and their coworkers. After a while, this all adds up, which is why I think it is so easy for profit to be made during this holiday.

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  48. It is interesting to see the economic impact that Valentines has on our economy. This holiday seems to simply be a way for companies to abuse our money and cause us to buy things that we do not necessarily need. The amount of money and statistics that go into this holiday may also be viewed as posotive, as it increases the overall GDP in America with the sheer ammount of spending that happens on this day. I did not participate in any purchasing of valentines goods this year, but all throughout elementary it is a staple to purchase valentines for classmates, which adds up considering all the young students across the United States. Overall, the impact that valentines can have on our economy is a sheer amazement.

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  49. I can't believe that the U.S. spent almost 19 billion dollars on valentines day in 2015. It's almost like the holiday was made for profit. It's annoying how valentines day has kind of turned into a day where people spend 200 dollars on their significant other, and post something on social media about it.

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  50. I am not at all surprised on how much money is spent on valentines day. It seems in America every holiday get upstaged tremendously. Although giving gifts to friends and loved ones is important it seems as if industries are taking advantage of us and making things a bigger deal.

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  51. It's amazing to see how much money people actually spend on Valentine's Day. As you stated, an average person would spend about $146, and this is a good thing. Not only would this make a love one very happy, it is good for the economy. It brings in more profit for companies, which in turn helps the economy. The more money a company gains, the more employment opportunities there are.

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  52. Your post was very well written and included solid data and support for your main idea. Your introduction was concise but drew interest and attention to your post right away. In addition, the graph you provided was easy to follow and you also provided an abundance of data while remaining objective. Nice job!

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  53. There was a lot solid evidence that you used to prove the impact the Valentine's Day has on our economy. In the global Business strand of insight I am working with a organic caramel business and they can directly relate to this blog. They saw major profits on Valentine's Day as people bought sweet goodies for their loved ones. Overall, it is crazy to think about how much people will spend on their loved ones.

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  54. The amount of money spent on Valentine’s Day gifts is not surprising to me, however it is surprising that only 55% of people celebrate this holiday. I figured it would be a lot higher than that as most elementary age kids celebrate it within their classroom and many people who aren’t in relationships still celebrate it with their friends and family. Personally I worked at a store February 13th last week and got to see first hand the high demand for Valentine’s Day presents. The items with the highest demand were definitely flowers and candy, however many people also opted for balloons, cards, and stuffed animals.

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  55. This is an interesting topic because I never really thought about how much money was spent on Valentines Day. I personally won't typically buy sweets or a gift for someone on Valentine's Day. I also don't expect something from someone else especially because I don't like to eat sweets that much. I don't know the history of Valentine's Day or when it originated but to me it's a sweet holiday but also is used by many stores to make more money.

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  56. The amount of money spent on valentine’s day isn’t surprising to me. Personally I feel like a lot of people don’t really celebrate valentine's day, it’s more of younger kids that do and if you're dating someone. This holiday seems to be a way for companies to make money, it’s honestly a really annoying “holiday.”

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