Trick or Treat Economics
This year, it is estimated that Americans will spend $9.1 billion on Halloween; $700 million more than last year. Major spending holidays like Halloween can have a short-term benefit for the economy, but some also think that because so much is being spent, the economy is already doing well. More spending equals higher Gross Domestic Product which equals jump-starting economic activity and potential job growth.
Halloween also has a seasonal impact on jobs and businesses. Some businesses are only open during Halloween like costume stores and other retail stores. They open before the holiday begins, thrive during the season, and close after the holiday is over.
In his 2009 article, economics writer Jeffrey A. Tucker wrote about how Halloween teaches valuable lessons. These lessons include: children should work for their rewards, bartering is an option, and appearance matters. Children get to have fun, dress up, and eat as much candy as their heart desires while learning important life lessons.
Halloween is a multi-billion dollar industry and it takes place only once a year. I personally can't believe so much money is spent on candy, costumes, and decorations, but the consumer spending has a net positive impact on the economy, on employment, and on small businesses.
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