December 21, 2022

No Gifts? Not Necessarily A Bad Thing





An interesting look at changing attitudes towards gift giving from Tyler Cowen:


The research is clear: Americans are becoming less generous over the holidays. Not to sound too much like a Scrooge, but this is not necessarily a bad thing.

In 1999, Americans said they planned to spend $1,300 (converting to 2020 dollars) on holiday gift giving. In 2020, that amount was about $800. These numbers are based on Gallup data, but retail sales figures show a broadly similar pattern. From 1935 through 2000, gift-giving tended to rise with disposable income. Since 2000, gift-giving has fallen as national disposable income has risen.

…One hypothesis is that Americans are simply getting less generous. Yet charitable giving is robust, so that’s probably not right.

An alternative possibility is that Americans are too rich for gifts to make sense. It’s not only that billionaires are hard to buy for; the rest of us are, too. You might think your friends already have most of the important things they need, so how can you buy them something meaningful at the margin? This logic doesn’t hold for all Americans, but perhaps the higher earners account for a big enough share of the gift-giving total that it exerts a downward pull on the numbers.

The cheeriest scenario — again, speaking strictly as an economist — is that Americans are realizing that gift-giving often doesn’t make much sense. If you give me a gift and I give you a gift, neither of us is quite sure what the other wants. We might both be better off if we each spent the money on ourselves. Under this hypothesis, Americans are not becoming less generous, they are becoming more rational.

Another rationale for gift-giving is that it tightens familial and social bonds. Perhaps it does, but it is not the only means for doing so. More and better communication — which has also become cheaper and easier over the last two decades, with email, texts and cheaper phone calls — may make gift-giving seem less essential.

There is also the possibility that we, as a society, have lost that “Christmas spirit,” whatever that might mean. After all, secularization is rising and churchgoing is declining. Christianity is less central to American life. Whether this social development is all good or bad will of course depend on your point of view.

 

This year, like most years, my gift-giving budget is zero, although I did donate to our local food bank. 

Less emphasis on gifts is an interesting trend I find heartening. 

What do you think? Are you spending less on gifts this year? 


 

8 comments:

  1. We do not buy gifts for each other or for any other people except for our daughter and the gifts are usually items she actually needs. We also give her money. If I personally give a gift to anyone else, it will most likely be hand made or baked. Most people I know have everything they need or want and more. In some cases much more. Happy holidays to you! I hope you are nice and warm up there. We are expecting temps below 20 degrees here in south Alabama. Wish us luck that nothing freezes and bursts!

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    1. Anonymous12/23/2022

      Personal gifts are the most meaningful... like the beautiul rock art you sent us one Christmas. So nice! Wow, that sounds cold for down there. Stay warm, and hope your new year is great.

      - Gregg

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  2. We are a family of "Oooo X would like/love/find that useful" gift givers at any time throughout the year. Receiving a thoughtful gift from someone nowhere near any of the traditional or obligatory gift giving times is much more meaningful. One year my children decided they wanted to "do" Christmas, so we did. The second year we "did" it again but I could feel the enthusiasm waning. By the third go-round they all agreed it wasn't our thing and we donated all the paraphernalia. The one who married into a family who celebrates anything and everything admits she finds it all, especially the gifting aspect, utterly exhausting - more so because she grew up with the "if you don't have the money in your pocket you can't afford it, period" philosophy.

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    1. Anonymous12/23/2022

      That is great. Even as a kid the gift binge was always disappointing compared to all the other better things about this time of year - the smell of forest in the house, the upbeat mood of my family members, colourful lights brightening up the dark days, and friends and family visiting.

      - Gregg

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    2. In my early years the house we lived in was heated with wood. Dad would often throw a pine log or a spruce bough into the mix just for the glorious scent that would waft throughout the house. Building and cooking on a fire is my favourite part of camping come summer; I always hold one sweatshirt or hoodie back from the laundry for a few weeks because I love that smokey perfume in my clothes (the city folk don't appreciate it somehow).

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  3. Anonymous12/23/2022

    We only buy gifts for a few family members, and we buy them things they need or have had on their want list for some time. We never spend much. I do buy secondhand gifts for a few friends, gathering them throughout the year as I find them. Sometimes it's a book or sentimental glass, and others it's a photograph I've taken that I think they'll enjoy. It's all simple and meaningful. The "going to the mall to buy shiny crap" crowd makes no sense to me! Time spent with loved ones is the very best gift. Merry Christmas, Happy Hanukkah, and Happy Solstice! -Erin (from TX, where it's 14 degrees!)

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    1. Anonymous12/24/2022

      What! In Texas? As usual, we love your approach. Love and light to you and yours.

      - Gregg

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  4. Anonymous12/28/2022

    I know some people enjoy giving gifts just for the joy they get from giving, but I wonder how many people feel pressured and obligated to give gifts? I think some people feel that others will see them as cheap, greedy, or stingy if they don't give presents or that they're being a "scrooge" and not getting into the spirit. If you enjoy giving, that's great. But giving doesn't always have to come in the form of a physical item, although sometimes that can be helpful to people who need it. I myself tend to partially feel guilty if others give me something and I either don't have a gift for them or didn't want to exchange presents. Unfortunately for some people they will feel offended if they don't get a gift or they will hold it against you. I feel it's similar to money...it can be a touchy and emotionally charged subject in some ways for people.

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