According to the National Retail Federation, spending for the holiday is projected to hit a record $19.7 billion with 54.8 percent of Americans expected to celebrate the holiday. Men are predicted to spend an average of $133.61 on gifts while women are expected to spend about half of this with $62.14. People are even expected to spend an average of $26.24 on gifts for their pets.
Holidays like this are beneficial for the U.S. economy because they boost sales for businesses. As consumer spending is the largest component of GDP, it is important that Americans are going out and spending money on holidays in order to drive the GDP up, growing the economy.
Wow I didn't realize it was that lofty of a number. I wonder how much Hallmark makes on this holiday, as well as other holidays. Do these big consumer holidays impact savings of people in general? Is making purchases like these the best for the overall economy? Or are we sticking our neck out a little too far, when we should be saving that extra money. These commercial holidays may influence a distorted view of how wealth and material belongings are fundamental for love and happiness.
ReplyDeleteIt is interesting how holidays are used to increase GDP in the modern day. I would like to see how Valentine's Day spending compares to other holidays. In addition, I wonder how the average spent per person compares to other holidays. Do people spend on average more per person since people think the amount spent is representative of how much you love the person?
ReplyDeleteCool to see numbers and facts about holidays such as Valentines Day. I personally didn't celebrate this year all too much but I know people that do and they definitely spend money for it. Holidays like this are definitely good for the economy, and it also brings out the good side of people. I would also ask the same question Skye asked above, but maybe see if there is a positive correlation between money spent and how much the person loves their significant other, or something like that.
ReplyDeleteI have to say: retailers are so clever to use holiday atmosphere to sale their products and create more benefits from it. Firms get benefits from the holiday, consumers benefit from the products firms produce. Both of them trade off. No wonder a large amount of people enjoy celebrating holidays.
ReplyDeleteOnly 55% of Americans are celebrating Valentines Day and 19.7 billion was the projected spending for the holiday in 2016. Imagine if more Americans were celebrating this holiday on an annual basis and I wonder if that percentage fluctuates much within the years. It is amazing how people are willing to spend so much money on a made-up holiday. Valentines Day really is a Hallmark holiday and it is no surprise that retailers and manufacturers take advantage of it's gift buying atmosphere in order to boost sales.
ReplyDeleteThis past years holiday spending was done, it will be interesting to see if the projections are accurate. Or will last years underperforming holiday sales continue into the year of 2016. Jake mentioned that just 55% of Americans are celebrating the Valentines holiday, its wondering if the 19.7 Billion projection takes that into consideration, assuming it does, its amazing how they calculate that 55.5% and then how they in return calculate 19.7 Billion. Both numbers being rather specific it brings a lot of interest to see how close expectations and reality will be this year.
ReplyDeleteThis is great for businesses like clothing companies to sell off their remaining winter line of clothing before the inventory switches to spring, and so they can still profit well, not as well as the holiday season, but well enough to strongly close out before another season rolls around.
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