Why You Shouldn't Buy Presents for the Holidays
July 13, 2009
Waldfogel (The Tyranny of the Market
) delivers a badly needed poke in the eye at holiday-time consumer madness, positing that not only is compulsory gift giving stressful and expensive, but it's economically unsound. Purchases are usually a zero-sum game—a $50 sweater is bought only when it is worth $50 or more to the consumer. But most gifts are relatively worthless to the less-than-enthused recipient, thus severing the link between the buying decision and the item's value. Addressing the $66 billion in retail sales during the 2007 Christmas season, the author's bewilderment is evident when he asks—would anyone buy this stuff for himself or herself? does anybody want it?—and answers his own question with a quote suggesting that gift giving may be too firmly entrenched to budge: “There are worlds of money wasted, at this time of year, in getting things that nobody wants, and nobody cares for after they are got.” That's Harriet Beecher Stowe back in 1850. This lively, spot-on book may be the one gift that still makes sense to buy come Black Friday.
August 15, 2009
Waldfogel (business & public policy, Wharton Sch., Univ. of Pennsylvania; "The Tyranny of the Market") assesses holiday gift giving through the lens of economic tenets such as opportunity costs and deadweight loss. The result is a short but engaging manifesto on the inefficiency of the tradition, concluding with several solutions to increase satisfaction for both givers and receivers. Although his own suggestions mandate that you "not" buy this book for someone who wanted something else, fans of "Freakonomics" and "The Economic Naturalist" may love it.
Copyright 2009 Library Journal, LLC Used with permission.