December 7 2014
It’s The Most Wonderful Time of Year
It’s that time of the year again, where the stores are filled with Christmas decorations and Christmas lights glow throughout your neighborhood. This is also a huge time of year for producers, as well as buyers! Gift-giving is an essential part of this holiday season. Consumers are looking for those perfect gifts to give to their children, spouse or friend and producers want to make sure you find out exactly what you are looking for. So how much exactly do you think you’re willing to spend this Christmas? $100? $200? How about $1000? Well according to the 30th annual survey on holiday spending from the American Research Group, Inc, “Shoppers around the country say they are planning to spend an average of $861 for gifts this holiday season”. That is a whopping 8% more than the average planned spending from 2013. The graphs below show us more on how average spending has increased and decreased throughout the years.
With average spending at one of the highest it’s been in years, the Christmas season will bring a lot more total revenue than years before. This will help producers in the short run, as well as the long run. To watch an interesting video about how big consumers are really spending this year, click on this link.
So now you’re probably wondering, how much of an impact Christmas really has on the economy. Well, Christmas is the by far, the largest economic stimulus for countries across the world. An increasing number of Non-Christians have started to celebrate this holiday as well. According to Statisa.com, “The United States' retail industry generated over three trillion U.S. dollars during the holidays in 2013. These holiday sales reflected about 19.2 percent of the retail industries total sales that year” That’s about ⅕ of their sales, was from Christmas season alone. With an average spending rate increase of 8%, imagine how much certain industries will make this year, compared to last year. This is not only good for sellers who gain more profit but also for consumers. By an increased average rate, this means that there has been a possible shift in the demand curve with consumer’s income increasing this year. Also last year, 768 thousand employees were hired throughout the United States to help with the overwhelming demand for products during this busy shopping time. This helped with America’s high unemployment rate and allowed many to be able to buy that special present for their loved one. To read more information about holiday shopping, click this link and see how Americans spend their money!
So while you’re shopping around this Christmas season, looking for the perfect gifts for that perfect someone, think of how much of an impact you are making on the economy. Also think about how this year compared to last year. Has your total income increased? Are the prices for certain products cheaper? Are you enjoying it more than usual? All of these simple things lead to a growing economy, with Christmas time being one of the most important tools for the economy to succeed. Happy shopping and enjoy this amazing time of year!
"How Do We Spend Those Christmas Dollars? | Economics." Economics How Do We Spend Those Christmas Dollars Comments. Web. 8 Dec. 2014. <http://www2.cincinnati.com/blogs/economics/2012/12/19/how-do-we-spend-those-christmas-dollars/>.
"Topic: U.S. Christmas Season."Www.statista.com. Web. 7 Dec. 2014. <http://www.statista.com/topics/991/us-christmas-season/>