Sammy Lee
Economics
Mr. Reuter
1/2/2018
New Years Extravaganza
Ever since the New Year’s ball drop tradition started in 1907 in Times Square, New Years festivities have not only gained a bigger crowd, earned more profits, and provided more employment, but it has also become a greater part of our culture. The ball has dropped 107 times except for 1942 and 1943 when the ceremony was suspended due to WWII “dimout” lighting restrictions in New York City. The number of people that watch the ball drop from a tv is over one billion across the globe, and 1,000,000+ are expected to be in Times Square on New Year’s Eve this year. Ever since the beginning New Years is a very influential day for our economy because of the profit, employment, and attendance that takes place annually.
Times Square is universally known as a high population area and when people picture Times Square they see bright lights and advertisements all around them. Advertising is one of the main money incomes for that area all year. “It costs between $1.1 and $4 million a year to buy advertising space in Times Square, and many of the electronic billboards feature flashy lights, high-definition LED displays and catchy graphics in order to capture the attention of the people walking below” (Investopedia). Those who purchase the billboard spaces not only get to show their ads to about 50,000 people every day, but to over 1 million on New Years eve night. This is a very large cost but the profit that is made it outweighs that cost. This advertising payment isn’t the only large payment in New York. It is said, but not confirmed, that if there was a number value on it the annual ball drop costs over $1 million each year alone.
Because of the world renowned New Years celebration over a hundred jobs are created just to keep the event running; therefore, boosting employment. It takes people to build the ball. It takes people to clean up the 3,000+ pounds of confetti throughout the city, and the 48 tons of garbage left on the streets. Even with hundreds of people working to clean the city it takes an average of 7 hours to reopen the streets. There were “178 sanitation workers using 26 mechanical sweepers, 25 collection trucks, 38 blows and 40 hand brooms to tidy up Times Square” (6sqft). These are the obvious economic benefits, but there are 2,688 Waterford crystals in the ball, and they’re made in Ireland and then shipped into the US. This creates imports and connections between other countries.
All in all, New Years celebrations may be a lot of fun, but New Years is a very worthwhile event for our economy due to the profit, employment, and attendance. With all the jobs it’s created and the profit being made at this time, it has a positive impact on our economy.
Works Cited
Pham, Diane. “New Year's Eve in numbers: Facts for the Times Square ball drop.” 6sqft, 26 Dec. 2017, www.6sqft.com/new-years-eve-in-numbers-fun-facts-about-the-times-square-ball-drop/.
“Times Square Ball.” Wikipedia, Wikimedia Foundation, 31 Dec. 2017,
“The Times Square Ball Drop and the Story Behind this New Year's Eve Tradition.” America Comes Alive, 27 Dec. 2017, americacomesalive.com/2013/12/29/the-times-square-ball-drop-and-the-story-behind-this-new-years-eve-tradition/.
CBS/AP. “New Year's Eve revelers flock to see Times Square ball drop.” CBS News, CBS Interactive, 31 Dec. 2017, www.cbsnews.com/news/new-years-eve-revelers-flock-to-see-times-square-ball-drop-mariah-carey/.
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ReplyDeleteI really liked your post as I'd never thought of the ball dropping in economic terms. You did a good job including not only the more obvious economic connections such as the jobs created, but also the international economic relationship that involves the imported crystals. I'd be curious to see what the cost of cleaning up everything is, especially what they pay the workers. Additionally, I thought it was a good point about the advertisements being placed around Times Square as those bring in revenue for the companies. I wonder if there is a raised cost for ads on New Year's Eve.
ReplyDeleteThis is a really good topic since New Years just happened and we just got to see all the affects of the ball drop. I cannot remember a year when the New Years show in New York was not playing on my TV on the 31st, and I think a lot of people would say the same thing. It always amazes me how many people are gathered in the city to watch it happen no matter how cold it is. I cannot believe they drop over 3,000 lbs of confetti! The beautiful experience is probably not so beautiful to clean up--spilled drinks, cigarette butts, hats, and more are left behind for workers to clean up. The amount of clean up requires a lot of time and people, but this is only one time a year. Is this big peak of demand enough or do most of the workers have another job?
ReplyDeleteI never thought of this, especially the job creating part. I'm curious as to what other countries do for New Years, how they celebrate. Do they drop a ball? And where did it originate? Also what is the trade-off of creating all those jobs? Would be interesting to find out. Everyone I know watches it on T.V, yet I don't know anyone who has actually gone. It would also be interesting to find out if those advertisements actually increase sales or if they are just hoping they do.
ReplyDeleteAll this money and time for an event that lasts one second, but the build up an take down takes forever. The ball drop on new years is like a moral booster that is just for show and holds no physical purpose, yet it is done every year because it is a tradition that is expected to happen. It surprising that it hasn't grown to other areas in the united states to do more of an affect.
ReplyDeleteThe festivities in New York around New Years definitely boosts expenditures in and around the area. The large increase in tourism around Times Square provides many opportunities for local shop owners or businesses to make more profits, as there are more people in the city they can sell goods or services to. However, the job increase around this time is only seasonal, once the all of the garbage is cleaned up from the party or tourists head back home until next year. All of these jobs would decrease then after the holiday.
ReplyDeleteI really enjoyed reading this piece and you did a really nice job on including the economic side of New Years Eve. I did not realize until I read your article, that this festive celebration creates an enormous amount of jobs for either people who are unemployed or looking for more work. It makes me wonder how much these people make on a night like this. Also, I found it interesting that the companies that choose to use Time Square as an advertising outlet also get the benefit of advertising during New Years Eve. Just by either being in New York or watching the New Years Eve. special, there is a lot of exposure just in that one night, which is an included bonus. Overall, really good topic, it was eye opening and easy to relate to.
ReplyDeleteThe ball drop in New York creates many jobs. There are many people that find jobs after the ball drop as there is always a mess to clean up. There are many good economical effects for businesses near Times Square. There are so many people that visit the ball drop, that businesses have profit if they stay open. Even before the ball drop keeping stores open is important for businesses in New York as many people come and visit Times Square. It is important for businesses in New York to keep the stores open all year as Times Square and New York are very popular.
ReplyDeleteNew Years has never been something that I am adamant to celebrate. It is very surprising that something like this really does affect our economy on such a large scale, all just for a single day. I would imagine the people working for this also make some pretty decent money. The presentation is super important and the clean up is an arduous process so the people who put in all the work for this event are certainly worth some money. On top of all of this though, is the fact that when all of these people are brought together they are far more likely to be buying New Years merch and stuff so this certainly benefits the businesses around the area.
ReplyDeleteI never viewed New Years Eve as a huge economic benefit, After this piece I can understand why NYE gets to be a bigger deal every year. With the millions of people who show on time square for the ball drop not only are they watching the year fade into the next but many artists and other famous people are able to put there name into different areas creating a bigger picture. Along with the ads on the LED screens, Once the people recognize the bright flashing lights they will look over to see a company. Lastly as stated the clean up crew, This creates many jobs for citizens to set up and take down. This is an economic benefit thru many different ways.
ReplyDeleteI never realized the economic opportunities that come along with celebrating the new year in Times Square. It's extremely smart of businesses to purchase a spot to advertise themselves in Times Square during the countdown. This way, not only will all of the people gathered in New York see it, but so will the many people watching from home. Although it is costly, it's a smart decision that will help the company start of the new year with more sales. Additionally, I never thought about how this event creates jobs. Times Square is a large place and therefore takes many people to clean up after the celebration. So, not only is the ball drop entertaining for those who are watching, but it's also helping businesses advertise and creating jobs.
ReplyDeleteI never knew how much work and money goes into New Years Eve. Very interesting of a topic and informative. Clear points made about how much it costs for advertising, and the ball dropping itself are something that have not occured to me. You bring up excellent discussions about employment too. Seeing it on TV, you could imagine how much trash is accumulate and dread thinking about who has to clean it up; but that creates jobs for people.
ReplyDeleteNew Years is a huge economic profit at many places, but I agree, defiantly Times Square and especially the food places. Last year I heard about how prices on food even went up on New Years eve. To get into Olive Garden and eat, it costed $400... per person, and a shrimp place is estimated to charge about $800. It's insane that this is all because of the ball dropping. The amount of money that these businesses are bringing in one one night is mind blowing. Even if it was for one night, I would work at one of these food places. If a person has 400 to spend just to get in to eat, I bet most of those people leave pretty nice tips.
ReplyDeleteThis is one of the most interesting topics that I have ever read I had no idea how much this event could impact the economy. With over 1 million people going hotels must be packs and the whole economy much have sky rocketed up due to the amount of tourist that go to see the ball. I can't imagine 3,000Ibs of confetti being dropped over me. In addition this does create jobs and it is a way to lower the unemployment rate and with the cold weather those that came from warmer climate might have to buy new cloths to be able to stand out side.
ReplyDeleteWhile I never really thought of New Years as helping the economy, it does make sense. Not only in terms of the ball dropping and the expense that it costs, but also all of the people traveling to experience New Years in Times Square. These people are paying to stay in nearby hotels and supporting businesses with purchases of goods and food. The fact that dropping confetti could create jobs (although small) as well, is actually quite interesting and something that many people would not think of when thinking of the New Year. Overall, the economic benefits of any holiday are extensive and New Years is no exception.
ReplyDeleteI definitely agree that New Year’s Eve is a huge event that has many positive economic effects. Think of all the revenue that is collected from the surrounding businesses each year when so many people come and eat and drink out. In addition, this must have many positive externalities for the transportation sector. Many people from all over are travelling to these festivities and have to drive, fly, take the train, etc. Once in New York, there is a revenue increase for the hotels and places to stay as the demand is very high. Many stores also supply party hats, kazoos, glasses, and other celebratory, fun items and clothing people use to bring in the New Year. After looking further into this topic, I found that Times Square basically fuels New York’s economy. Tourists, especially around New Years Eve, put a lot of money into the surrounding economy. Lastly, Times Square creates a lot of jobs, helping the country’s goal of reaching full employment as many people are needed to set up, clean, provide food and drinks, etc for the excited tourists!
ReplyDeleteThis post is very interesting as it is a perspective I have never considered when thinking about these celebrations. It is so cool to see that such a simple tradition that has taken place for over hundreds of years has grown in popularity, and how the effects on the economy have grown along with it. The beneficiaries of this event not only to the TV networks that broadcast it, as well as the performers, but the people behind the scenes setting it up as well as cleaning up afterwards is very impressive.
ReplyDeleteI agree that New Year's Eve has many positive effects on the economy. Many businesses have New Year's Eve celebrations or specials that bring in a lot of revenue to the business. The transportation business has positive economic benefits as well because people don't want to drive at that time of the day.
ReplyDeleteNice job Sammy! After conducting some research myself, I discovered that over one million celebrate New Year's Eve in Time Square. Reserving a good view and staying the long wait for midnight's arrival must be challenging. In order to truly secure a spot in NYC, attendees have the option to purchase a BallDrop Pass, allowing access past the barricades to enter various restaurants, lounges, nightclubs, and even spaces in and around Times Square. These venues have a staring price of $79 but can easily cost above $1000 for high-end events.The cost of the ball according to organizers, who account for both the materials and labor required for its creation, is over $1 million to ensure that a 11,875 lb. crystallized ball can drop for 60 seconds from a 77-foot flagpole. With the enormous crowds, 3,000 lbs. of confetti dropped at midnight, and 50,000 watts to power the entire night, who wouldn't want to spend New Year's Eve in NYC? Also, 48 tons of trash is cleaned up by NYC sanitation workers after the New Year's Eve festivities, taking about 7 hours to reopen the streets. Refuse ranged from confetti to balloons to party hats, pizza boxes, and empty bottles... what a celebration to pay for and immediately clean up after 12:00 a.m. strikes!
ReplyDeleteLike all national events and spectacles, New Years is the perfect time for company's to promote their products and services because everyone will be watching the event so their company will be noticed a lot more. When big events like this happen it benefits the economy because it is increasing recognition and sales of products related to the event.
ReplyDeleteThis is a very relevant topic to us as United States citizens. Every year we are subject to the numerous festivities surrounding New Years and the holidays in general. It is very shocking to see how much money and jobs go into a single celebration. The celebrations is a definite economic asset to the country as it brings a large amount of money into the television advertising market.
ReplyDeleteI never really thought about ow big the advertising market is in Times Square on New Years eve. If you think about it, all the people on the streets plus millions of US citizens who watch the spectacle on television see these adds. So you're right, the pay off the the companies who purchase space for their adds to be promoted on the flashy LED screens really is overly significant.
ReplyDeleteNew Years is a wonderful time and is the ONE thing that every celebrates in different countries. It is the one time we all come together at different times but its hours of happiness and excitement all over the world. New Years is a beautiful time and I have always dreamt of going to Times Square during new years. I have been there multiple times before and the views, sounds and overall experience is breath taking. A little known fact one of the balls for times square was made out of all real diamonds and made in WI I believe. It is a wonderful time that you don't want to miss and is another thing to add to your bucket list.
ReplyDeleteI have never thought of the New Year tradition of the ball dropping as a economic benefit, but after reading this, it definitely makes sense. I know New York is the most popular location of the ball dropping since it was the first to begin the tradition, but there are also other major cities across the country that do the same thing. I think this is to economically benefit other cities as well as make the experience more accessible to people who may not live near New York. It will be interesting to see how many more people will attend in the following years, and if possibly more cities will implement this tradition in order to bring more people and money to their city.
ReplyDeleteIt's crazy how involved people are in holidays now then they have ever been. Holidays used to be religious and revolved around our beliefs. Now all holidays are about money and ways to make money for the economy. Business, corporations, etc. use holidays as a way to make money and people use the holidays as an advantage to save money. In addition to holidays not being about religion; People that don't believe in the religion of the certain holiday continue to celebrate the holidays. An example are the people that aren't catholic and celebrate Christmas. The word really does revolve around money.
ReplyDeleteThe fact that a single event, on a single day, within a large city, can cost so much and boost the economy greatly is astounding. Millions are put into the celebration but that's just in Times Square alone, what about all the families watching on TV, the ads that are placed during the showing of the event are probably costing tons and making tons too. Along with the supplies for families to have their own celebrations with alcohol, food, streamers, and other decorations, with each purchase it is boosting the economy slightly. So businesses probably make millions from having things that are seen as 'necessary' for a New Years celebration.
ReplyDeleteThe amount of time and money the New Year's Eve celebration takes is ridiculous and most people don't think about it. New York City, Times Square is known for its big, bright lights and huge attendance. There are positive externalities to celebrating in Times Square, like having so many party options and activities to do. But with this excitement there are also negative externalities like having to stand outside in the freezing cold weather for numerous hours and being super close to everyone, therefore no room to move freely. These could make this event have less of an appeal to some people. Overall I think all the New Year celebrations create a great source of revenue but it does take a lot of time and effort for everyone involved.
ReplyDeleteI like how you connected this to the unit we are in right now and talking about the externalities. For me, it would be a positive externality because I don't have to pay to watch it on TV and I am also sitting in my warm house instead of outside in the cold. There are a lot of economic benefits such as creating jobs and bringing in profits so hopefully the tradition of dropping the ball in Times Square on New Year's Eve will continue in the future for personal entertainment as well as economic profits.
DeleteI think that it is very interesting how much it cost to buy advertising in times square.But as stated in the article it is being shown to 50,000 people a day, and more when there are special events. When I visited times square one year I only went to see the ads. Since there in your face when you first arrive, it is also a good marketing skill to have ads in times square. If you have a catchy slogan and nice picture then people are going to remember your ad. Overall I think it is good that we have new years, because it brings in alot of money since people from all over the world travel for it. Since there are flashy lights and celebs and excitement all around.
ReplyDeleteCrazy how the number of people who see the ads in NYC multiply by 20 in just one night- 50,000 to 1,000,000. I like how the ball has crystals imported from Ireland, and New York already has the Statue of Liberty from France so there's definitely a lot of global connections in the big city. If over a billion people globally watch the ball drop in NYC that means literally 1/7 of the entire world watches it.
ReplyDeleteNew years is a great time, not only does it provide festivities and add to the general holiday cheer, it also boosts the economy. I remember seeing Planet Fitness hats for two New Year's celebrations now and it really makes me want to buy a membership. I wonder how much Planet Fitness spent on just the New Year's celebrations. It was also really shocking to find out how much confetti was used, I mean 1.5 Tons of confetti is a whole lot. I would not be surprised if they kept adding events leading up to the ball drop in an attempt to make more revenue from this night. Great job on your blog post!
ReplyDeleteI think you brought up a lot of good points in this piece. After reading your post and the comments made previous to mine, I can see that although everyone celebrates NYE in their own way it's very interesting to see that there is a consistent annual economic effect that many may not even acknowledge. I'm glad you chose to do this topic because it's very relevant and different than what we've heard so far this year.
ReplyDeleteNew years is a great time to promote your advertisement. Like you said, so many people gather for this event so its easy to generate money off of these ads. On a side note, Me personally would never go there. I've heard stories of people wearing diapers when they go to times square for new years. It is so crowded that you can't ever go anywhere and use the bathroom or you'll lose your spot. And people would have to wait outside for 12+ hours for the ball to drop. That being said, the businesses that promote their advertisements make a lot of money.
ReplyDeleteI really liked reading about the economic effects of the New Year’s Eve Ball Drop. It was very interesting to learn about the various jobs there are in planning and post- ball drop. Although the event happens one time at the end of the year, it is not only enjoyable but helpful in providing jobs. I’ve always thought the celebration was cool, but I didn’t know that it used 3000+ pounds of confetti. It seems a bit extreme, but I understand. Overall, you did a nice job tieing in the event to economics and your piece flowed well.
ReplyDeleteThis was a relevant topic for how recent New Years was. Not only in Times Square is there lots of economic opportunities, but all the people that watch the ball drop on TV as well. Lots of advertising go into Times Square and TV, which bring more value to the economy. More people are going to go shopping for New Years deals online and in stores from looking at these ads that were shown. The US, and even the whole world, created a popular culture for the New Year. Lots of things celebrated during the New Year have gone up in sales, especially for champagne and other sorts of alcoholic drinks. (Vinny)
ReplyDeleteI would agree the whole Holiday Season is a great opportunity for companies to make a killing. They have customers almost begging for their product at times. If I were a company owner this is where I would make my big push to increase sales because the amount of customers that would be interested in purchasing what ever I have to offer would be multiplied to what it normally is. This time frame could make or break your company.
ReplyDeleteI would agree that New Years as a holiday has been getting bigger and bigger as the years go on. It is always a tradition for my family and I to stay up and watch the count down. However, aside from the actual celebration, it is very popular to make a New Year's resolution. Most of the time, people would like to see their selves get into shape. As a result, the amount of members in a gym significantly increases during the month of January.
ReplyDeleteI agree Mariano, gym members is one of the most increased things during a transition from one year to another. It is one of the most popular New Year's resolution. It is one of the many traditions that there is during the New Year. But I also agree with the tradition of staying up all night to celebrate the New Year.
DeleteThis is really interesting to think about in an economic perspective. I have never thought of the New Year ball drop as being such an economic gain. I know that time square is regularly a heavily populated area and on new years it is packed to maximum capacity. With so many screens showing adds there must be a heavy demand for companies to get a spot on those screens. Nice topic, it really makes you think.
ReplyDeleteI never realized just how much money and work goes into having New Years Eve at Times Square. I also never realized how much these ads costed for companies to be featured on the big screen in Times Square, which in the long run has a lot of potential. Personally, I think it's great that New York does this tradition every year because a lot of people come out every year, but there's also a lot of newcomers, which I hope to be one day. Overall, this a a very relevant topic to the New Year and I enjoyed reading about all of the economic standpoints within the production of New Years Eve.
ReplyDeletePretty cool how you related this back to Econ! I never thought about how much money and time was spent to have New Years in time square. With all the screens in time square, the demand for companies to put their brand on them will increase greatly taking into account the amount of people who are present during the ball drop.
ReplyDeletePeople don't really think about cleaning up after New Years Eve, but there's a lot of confetti and party hats and part supplies that are probably discarded on the streets after. You're right: that increases the number of jobs, but who pays for that? Does the city of New York pay for it, or is it by donations? If the city does pay for it, how much profit do they end up making. There is a huge tourist boost for New York during the Christmas and New Year's celebration, and the cost of the party may be very small in comparison to the revenue they make.
ReplyDeleteI think you bring up an interesting point that not only do the ads in times square during New Year's bring in revenue for companies, but the event itself creates short-run jobs. We usually don't think about the people that prepare for and clean up afterwards who need to be paid also. I'd be curious to know how large of an impact New Year's Eve in NYC positively impacts the economy for the incoming year. (Kat Van Hulle)
ReplyDeleteThe revenue generated from New Year's is baffling consider the event is only regional and it only lasts a few hours. Moreover, the liquor companies rely heavily on the holidays, as Late November through the new year is a heavy party season, in which brewers and distilleries profit enormously.
ReplyDeleteI've never thought about the Times Square New Year's Eve and how that it connects with stuff that we've learned in Economics, so great job with connecting this topic to our class. Who cleans up the mess the next day? This is a huge event that many people attend, and I never realized how much time, money, and effort is put into this event. Who sets the event up and cleans it up?
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