Economics is called the “dismal science,” and while I like economics news, every once in a while it deserves its reputation. I heard on the radio a week or two ago a report on the economy of gift-giving. The economist, Joel Waldfogel, has written a book titled Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays. In his book (and in the interview) he argued that people never value gifts as much as the giver does in paying for them. In fact, there’s a loss of value of about twenty percent in the process of giving a gift. In other words, if I give my husband a twenty dollar book for Christmas (and politely cover up the price on the dust jacket), and then you asked him how much he would pay for that same book, he would, on average, say sixteen dollars. This seems to be true across the board, regardless of the price of the gift. So don’t give gifts, Waldfogel advises. Give cash instead (Waldfogel).
Dismal. It’s the delight of gift-giving reduced to barest economic utility and efficiency. But Waldfogel does have a point. Last year, during the depths of the worst recession in America since the Great Depression, the average American spent $616 on gifts. This was a disaster for the retail sector, because $616 spent per person represented a 3.4 percent decline over 2007. Forecasts are mixed for this year. A Gallup poll found that people plan to spend slightly more this year, $638, on holiday gifts. However, the Conference Board, a non-profit marketplace think-tank, estimates that American households will spend an average of $390 on gifts this year, down from last year’s average of $418 per household (Adams). Any dip in American spending–really, any delay in returning to pre-recession levels of spending–is disastrous for our economy, which is driven by consumerism. The spiritual gifts of this season, like spending time with family, enjoying good food and good songs, and maintaining our families’ financial security, do nothing to keep the engine of the economy moving along. For the marketplace, it’s all about the dollars.
Now, the author Waldfogel probably does not hate the holidays. His economic wake-up is trying to get us Americans to examine the value of all that gift-giving. It runs the economy! It’s part of the season! But it doesn’t make your loved ones as happy as you think it will. If you have turned on your television during the past month, or gone out in public at all, you have been bombarded with marketers trying to get you to buy, buy, buy for the holidays. Some things are not as expensive as you think, according to advertisements for discount retailer Target. Other retailers try to convince us that some things are worth the splurge, like a new car or diamonds. If you believed your television, overspending on gifts is what the holidays are made out of.
Wise families know this is not true. Marketplace, the same radio show where I heard Waldfogel interviewed, has also featured a family who have paid off $100,000 in debt over the past five years. The Hildebrandts have won the Professional Achievement and Counseling Excellence 2009 Graduate of the Year Award for their work in finding financial stability for their family. They had $89,000 in credit card debt and another $17,000 in a car loan. Their debt came from a combination of unnecessary spending and medical bills. To pay it off, Russell Hildebrandt, an industrial chemist, took a second job as a janitor. His wife, Kandy, took on all the management of their home, on a tight budget and with one car for the family of five (Kroll). They continued to give Christmas gifts to their children, although not to each other or other family members. They continued to tithe to their church. Now, the family is debt-free except for a mortgage on their three-bedroom home. They say that they continue to spend less, buy fewer things and buy things used, even at Christmastime. The quick high that spending brings cannot compete with the good feeling of being debt-free. This Christmas, even though they could afford more gifts, Russell says that the thing he looks forward to the most is spending time with his family without being exhausted, a luxury he did not have when he worked two jobs (Hildebrandt). The Hildebrandts have learned that the riches of the season are not found in any store or bought at any price, but are at home, with family and friends.
Still, I can’t help but think with dismay on some of Waldfogel’s holiday economics. He places a value on gifts according to what the giver spent on them, and on what the receiver would spend on the same item with his or her own money. He says studies show that twenty percent of the item’s value is lost between those two figures. He admitted freely on the radio that economics cannot place a value on the simple act of giving and receiving a gift. While I usually have a budget in mind when shopping for holiday presents, money is not primarily what I look for. For me, both as a giver and a receiver, the value of holiday giving is not in the money. How can I find out what a family member would like without asking them directly, to delight them with just the present they want? How can I show my attention and give time to those I love? This year, I’ll give my aunt for Christmas a counted cross-stitch piece I have been working on for her for years. I probably spent sixty dollars on materials five years ago, and will spend perhaps that much again to have it framed. But it is by far the most valuable gift I will give this year, because I have put about a thousand hours of my time into it, and because it is unique and irreplaceable. And I have no worries that my aunt will not like it or will value it less than she should (she chose the pattern, after all, and the gift is not a surprise). The gift is full of my love for her, like all the best gifts. Love has no value in the marketplace, yet has infinite value in our hearts and our homes.
I am also put off by Waldfogel’s suggestion of cash as the ultimate holiday gift. There are times when giving money is the right thing to do–when financial support is the way we want to show our love and attention to members of our families who could use it. The holidays even make that kind of giving easier, since gifts are expected and the recipient has a way of understanding the money as a gift and not as charity. During graduate school, my parents usually gave me a plane ticket to Michigan for Christmas, so that I could spend the holidays with my family. When I received these tickets as a gift, I knew I was also receiving the gift of time to spend with my family and friends.
But however useful money can be as a gift, because of its fixed value between the giver, receiver, and the marketplace, it is not the only thing that shows our love and appreciation and understanding of another person. The delight of gift-giving is to discern what the other person would like, and what we would like to give. Treating the exchange as purely utilitarian misses the spiritual value of giving gifts entirely. Gift-giving at the winter holidays is largely a tradition found in celebrations of the Winter Solstice. The Romans celebrated Saturnalia from December 17 through 24, a festival including the giving of gifts. In Judaism, even before the minor holiday of Chanukah had become, by necessity, a rival to Christmas, parents gave children gelt, or chocolate candy, to use in playing dreidl. According to the Christian myth, the wise men brought gifts to the infant Jesus, although this story almost certainly already reflects borrowing from pagan traditions. We have been giving and receiving gifts at the winter solstice for millennia.
We are accustomed to think of generosity as a virtue. I think of the children’s song, “Love is something if you give it away, give it away, give it away, then you’ll end up having more.” Giving moves money and resources from people who have more than they need to people who do not have enough. Nothing makes us feel good like giving does. The Hildebrandts continued to tithe, or give ten percent of their income, to their church while they paid off their debt. To some, that may look foolish, but there must have been a reason for that generosity. I imagine their church supported them and their family during the hard times. Their church may have been a place where they were accepted for who they were, regardless of their financial means. I also imagine that giving helped the Hildebrandts feel good about themselves while they endured the shame of past mistakes and the burden of doing without. I think that the joy we get from giving to others is what keeps the cycle of holiday gift-giving going. It’s that joy the retailers are trying to latch on to when they encourage us to spend more and buy more gifts. Too bad the joy comes from the act of giving, whether it is a child’s handmade card or a pair of knitted mittens. It does not come from spending more.
Yet there is a companion to the virtue of generosity, and it is the virtue of gracious acceptance. It’s telling that we use the word “graciously” to describe the ideal way to receive a present, when “grace” means “gift.” By accepting gifts with grace, we are indeed giving a gift back to the giver. A society can’t have gift-giving without gift-acceptance, as well. This is part of what we teach our children about good manners. The right response to receiving a gift isn’t, “Oh, you shouldn’t have,” but, “Thank you.” Instead of saying, “Please don’t get me anything. There’s nothing I need,” receiving gifts reminds us that there is always something we need, even if it’s not a thing. Receiving gifts reminds us that we are all, at different times, in need of something that someone we love could give us. None of us is so self-sufficient as not to need any gifts at all. By receiving gifts with grace, we affirm those good feelings the other person has for doing something for us. We show our basic humanity and neediness. We become vulnerable–and human–and connect with the person giving us the gift in the best way.
Giving and receiving gifts at its best is not about status, or wealth, or bargains. It is about showing our love for each other and reaffirming our basic, shared humanity. I am all for reducing the presence of the marketplace in holidays that are fundamentally about family and faith. But I don’t think it’s helpful, either, to try to take the exchange of gifts out of the holidays. Gifts do not need to be expensive, or even purchased, to be meaningful. The best thing about giving a present is thinking of the other person, and the best thing about receiving one is knowing the other person thought about you. A year ago, it looked like we were in danger of the collapse of our system of credit and banking. Even if our economy had come to a halt, families and friends would still have shared the joy of gifts at the holidays.
Please join me in prayer.
Spirit of the waiting dark–the dark that cradles the unborn child, the spark of winter’s chill, the dark against which our candles burn–hold us in your comforting embrace. Remind us of the joys of your season: the giving of gifts to show our love, the lighting of candles in our windows and on our tables, the meal, however modest, which can always be shared with one more. Give us your blessings for the new year which is to come. At this moment of solstice, let us pause before we turn back towards the light, and revel in the mysteries of winter. Amen.
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Sources
Adams, Katie. “Christmas 2009 Vs. 2008: What Can We Expect?” Financial Edge. 1 Dec. 2009. Investopedia.com. Accessed 19 Dec. 2009.
Hildebrandt, Kandy and Russell Hildebrandt. “Celebrating Christmas Debt Free.” Interview. By Tess Vigeland. Marketplace. APM. W217BH, Plymouth, New Hamp. 18 Dec. 2009.
Kroll, Karen. “The Biggest Losers (of Debt): How a Family Shed $106,000 in Debt.” Financially Fit: A Guide to Saving Smart and Living Well. 18 Sep. 2009. Yahoo! Finance. Accessed 19 Dec. 2009.
Waldfogel, Joel. “Rethinking the Idea of Gift-Giving.” Interview. By Kai Ryssdal. Marketplace. APM. W217BH, Plymouth, New Hamp. 24 Nov. 2009.