Saint Patrick’s Days Effect on The Economy
Holidays are a big deal in the United States. Whatever the occasion, we always find a reason to celebrate.
In particular, Saint Patricks is a holiday that is soon approaching, and will be widely celebrated throughout the U.S. As odd as it seems, St. Patricks day is more widely celebrated here in the U.S. than it is in another place in the world. Even Ireland. About 34.5 million Americans list their heritage as either primary or partly Irish, and that number is about seven times greater than the population in Ireland. On the map, you can see which states have the most Americans who state they are of Irish roots. So in terms of what this means for the economy. Well, millions and millions of dollars are going to be spent by Americans, in hopes to make this the best Saint Patrick's Day yet.
In 2017 alone, $5.3 billion was spent in just one day of celebrating St. Patrick’s day. This number is expected to increase, and reach an all time high this year. Statistics have predicted that each individual celebrating will spend an average of $39.65 on March 17th, for a projected total of $5.9 billion spent by all celebrating Americans. The chart shows how the average amount spent per person on St. Patrick’s day has fluctuated, however is currently on the rise. And for a smaller holiday, celebrated on just one day of the year (March 17th) there is a rather large revenue that is generated on a year to year basis.
Holiday spending is what makes up for 70% of the GDP. Therefore, this kind of spending is a big deal for the economy. As more and more Americans are “becoming Irish for a day”, more and more money will be spent, as it is becoming increasingly difficult to maintain a budget when celebrating holidays. And that is then increasing the total amount spent in that day, therefore positively impacting our GDP. With the trends showing that in the years to come spending on St. Patricks day will increase, it is likely that spending will also increase during many other holidays as well. Which means that consumer spending will continue to drive our GDP growth.
This spending growth can be attributed to more individuals wanting to get involved in every opportunity to do something fun, host a party, or go out. St. Patricks day is driven by many young adults looking to go out and party, spending much of their money on going out to a bar with friends or on decorations for the party they’re hosting. Data shows that 83% of celebrants will wear green, 31% will make a special dinner and 27% will head to celebrate at a bar or restaurant. And each of those tasks involve spending at least a little amount of money. For those who choose to drink, many will use services such as Uber or Lyft to safely arrive home after a night of festivities. Increasing the amount spent by individuals even more due to the new services such as those being offered.
Overall, it is safe to say that Americans like to have a good time, not matter the occasion. And holidays give us even more reason to celebrate. Lucky for the economy, more times that not these holidays are economy boosters and are greatly beneficial.
“The Irish-American Population Is Seven Times Larger than Ireland.” The Washington Post, www.washingtonpost.com/news/wonk/wp/2013/03/17/the-irish-american-population-is-seven-times-larger-than-ireland/?utm_term=.acf16ab125de.
Ogg, Jon C. “St. Patrick's Day in 2017 to Set Record for Economic Impact.” 247wallst.Com, 21 Mar. 2017, 247wallst.com/economy/2017/03/17/st-patricks-day-in-2017-to-set-record-for-economic-impact/.
Light, Larry. “Why Holiday Shopping Is so Important for the U.S. Economy.” CBS News, CBS Interactive, 28 Nov. 2016, www.cbsnews.com/news/why-holiday-shopping-is-so-important-for-the-economy/.