Christmas? In This Economy?

          December is that time of year: Whether it be Christmas, Hanukkah, or Kwanzaa, family members travel across states, nations, or even continents to reunite with each other and celebrate their faith and traditions. What better way to express this joy, excitement, and appreciation than through gift giving (or, in capitalistic terms, “socially-expected redistribution of capital”)?

          Various studies have shown that these holidays, with Christmas being the most prominent example, significantly stimulate the U.S. economy: not only is December’s share of annual retail spending 17 percent higher than the monthly average, but 2023 has broken the record for the highest amount of holiday retail sales ever with a staggering $957 billion in revenue compared to 2018’s 850 billion. Data scientists found that November and December holiday sales in particular average to approximately 20 percent of total annual retail sales. I attribute the increasingly important ties between Christmas and the economy to three main reasons: inflation, Capitalism, and the gradually more secular connotation of Christmas. 

          When the Covid-19 pandemic first hit the global economy, the labor market tightened significantly, leading to massive unemployment and lower wages. Labor unions responded with strikes and bargains, and firms responded with higher wages and an increased market price, effectively lowering the value of a dollar by inflating how many bills were in circulation. Although the Federal Reserve has been continuously trying to resolve this dilemma through increasing interest rates, the problem remains unsolved. In 2022, the mean net worth of American households was already $1.06 million because of the enormous increase in the cost of living, one clear example of the effects of inflation. It is important to understand that part of why Americans spend more now on holiday gifts is because they spend more now on everything else, too.  

          Consumerism affects every aspect of our lives, not just Christmas: we commercialize the teenage girl’s desire to belong by selling them identities made of Starbucks, Stanley cups, and Lululemon leggings. We capitalize on their fear of not being loved by reinforcing the idea that the monetary value of gifts accurately reflects how much others value you. Our society conveniently defines people and emotions as numbers, and this extends to Christmas, as well as any other holiday that you can think of. When the religious symbols that defined Christmas are replaced by candy canes, eggnog, and tinsel, and Santa’s gifts are used to measure love instead of express it, the holiday bloats into a Capitalist trope; when a holiday emphasizes competition over unity, all it really celebrates is pure Capitalism. 

          Now, why is the commercialization of Christmas so much more successful than other religious holidays? While over 30 percent of the global population is Christian, Christmas’ influence stretches far beyond this statistic: in fact, among the approximately 160 countries that celebrate Christmas, many observe other religions. In China, a majority-secular country guided by Buddhism, Confucianism, and Daoism, Christmas fairs are an extremely common phenomenon and popular destination in December; the holiday has evolved from a celebration of the birth of Jesus Christ to a secular celebration and time of relaxation. In fact, the evolution of Christmas may be best described by its music: our first associations are Mariah Carey’s All I Want for Christmas is You and Justin Bieber’s Mistletoe, not religious carols. 

          I have always believed that Christmas is particularly effective in its secularization because of its timing in the middle of winter, a season known for the longest nights, shortest days, and extremely bitter weather. What better way to preserve one’s warmth and joy than to celebrate? Even before the Christian faith, pagans celebrated “the Crystal Feast” and the “Unconquered Sun.” Virtually all religious cultures have traditions which celebrate light in times of darkness. It is a signal that spring is approaching, with light, warmth, and harvests—these are all universally lovable things, which explains why they have been capitalized on so intensely by our consumer culture. In modern America, companies seize on the fact that we prefer living in herds with our fellow family members and friends, showered by their love; and that we are also humans who draft out long term plans, who hope and dream. Ultimately, Christmas’ most important aspect—making it invaluable to both the economy and our society—is that it provides us a reason to continue moving towards the light.