The whole premise of this cute book rests on a basic economic error. This leads ultimately to the unraveling of Waldfogel’s case against Christmas giving, however much it reveals about Austrian v. mainstream economists. FULL ARTICLE by Mark Thornton
Source link: http://blog.mises.org/11248/the-economics-of-holiday-gifts/
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I guess the next step is a government ban on Christmas gifts…to improve social welfare.
It is too bad that really interesting questions are being replaced by the static utilitarian social welfare concept.
For example, I find that it would be interesting to examine the psychological effects of buying gifts out of quilt for not spending more time with your family and friends; how this may affect long term emotional health and, in effect, individual productivity.
Mark,
I found the irony in this to be very humorous.
Consider that economically, mainstream, or demand side, or Keynesian/monetarist, whichever you prefer, our say that the important thing is spending and so everyone should go out and buy as many Christmas gifts as possible to stimulate the economy. How many times have you already heard that this Christmas?
But economically Austrians would say that the only way to recover is for us to rebuild the savings that has been depleted by the malinvestment of the artificial boom manifest in the real estate/credit crisis. Therefore everyone should be careful this Christmas and be prudent in spending money to rebuild the savings pool.
But then politically it is exactly as you have described it. The demand side theorists actually elevate central control to a highest level and so demand that everyone must have their gifts approved by the central planners to make sure they are appropriate for our society.
But then politically the Austrians would say that everyone should have to right to make his or her own decision. The market is better driven by personal preference and then assets will be price properly so no central control should direct gift giving.
Ain’t irony fun?!
XMAS, OR WHATEVER IT IS CALLED IS NOTHING MORE THAN A BOGUS TIME OF THE YEAR.
AS FOR THIS HOOPLA AND BS, I COULDN’T CARE LESS.
I HAVE NEVER SPEND ONE THIN DIME (OR MORE) ON WASTEFUL “GIFTS” TO ASSUAGE A GUILTY PERSON’S FEELINGS.
I SAVE MY MONEY, AND WILL PINCH THE BUFFALO TILL IT DEFECATES; YES, I AM STINGY, AND I HAVE ALWAYS ADMIRED EBINEZER SCROOGE.
THIS SORRY PLANET NEEDS MORE OF HIS PARTICULAR BREED OF PERSON, AND THE SOONER THE DAMN WELL BETTER.
HAVE A GOOD WINTER SOLSTICE.
COSMO
Is this a perverse example of political entrepreneurship where connecting the book title to Christmas might generate more sales? Is this like the ever-growing number of Christmas recordings?
I say ‘perverse political entrepreneurship’ because there is a hidden agenda – either intentional or not – that promulgates economic fallacies. It therefore is both politically correct and economically perverse, which is a combination that fits the mentality of the masses that have been indoctrinated by the curriculum ordained by the unConstitutional coup!
the question now is: Do they gift buyers understand that what they are doing is maximising their OWN utility rather than the recipients? If not, would they keep doing it if they learned it?
Isn’t the purpose of gift giving to make the OTHER person happy and not ourselves??
In this case, our utility is maximised when the recipients utility is maximised (or it should be this way), therefore the best gift is one to maximise both persons utilities. A gift that maximises the gift buyers utility and not the recipients might just be an illusion, a fake feeling
Hey Thornton – have you seen the aluminum pole yet?
Nice reference
Okay, but have you seen the singing fish.
Christmas = epic economic utility fail
I don’t think you give enough credit to the emotional relief of gift giving. The need to give a gift- ANY gift clouds reason and destroys utility. It’s similar to a drug addict needing a fix just to stay normal. Many a recovered addict has looked back and seen years of wasted utility from clouded judgment.
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