11/19/09 Scroogenomics

As we start the season of giving, many people create their holiday shopping lists. This year like every other, unnecessary gifts will be exchanged only to sit on shelves collecting dust. Excessive gift giving has reached such a high that this autumn Joel Waldfogel, economist and professor, published the book Scroogenomics: Why You Shouldn't Buy Presents for the Holidays.
Scroogenomics estimates that consumers will "waste" eighty-five million dollars this Christmas. He bases his conclusion on survey work comparing the perceived value versus the actual value of gifts received. When consumers purchases items for themselves they make careful decisions in where their money is spent, but when shopping for others one is less careful to weight the value of the purchase. Waldfogel calls this loss of value "deadweight loss". It is almost as if around the holidays money is spent simply because we feel it is necessary.
This holiday give the gift which can never be taken away, education. EFAC's Holiday Giving Program gives you the opportunity to give a donation in honor of your friend. Don't join the eighty-five billion in "deadweight loss", but instead help change a life with Inspired Holiday Giving! Your friend will appreciate your thoughtfulness, and so will the child who receives an education.
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