The Economics of Santa
A man giving away free presents (manufactured most likely on slave labor--poor little elves) seems too good to be true. For those who don't know yet, I hate to be the bearer of bad news, but there really is no Santa. Now that we've cleared that up consider for a moment what the economic effects of a real Santa would be. Parents would not be spending hundreds of dollars on presents for the children. What would this mean for the economy. This year many plan to cut their holdiay spending according to many national surveys. Even though black friday seemed to show good profits, this is not always the best forecast of season spending. If there were a Santa Claus living in the North Pole and making all of our presents, even if he paid his elves--which I'm sure he doesn't--most likely that money, whatever currency it may be, would not be cycled back into our economy. How often do you see elves at Wal-Mart?