Thursday, February 09, 2006

Valentine's Day Economics

To stay with the same theme, what about interesting economic effects of Valentine's Day?

Stay away from the obvious: increased demand for flowers and chocolates, etc. The more creative the economic effect, the better.


Anonymous said...

So since V-Day is considered a Hallmark Holiday purely for spending money I guess it is pretty much a profit booster for some places. Places people go on dates such a resteraunts most likely will recieve a greater profit than an average day since a larger amount of people will dine and more people will splurge on desserts on V-Day. Although people may spend money on others for presents and candy they will most likely get it back through presents and candy they recieve. KRISTEN

Anonymous said...

Let me assure you, Valentines Day is NOT any ordinary holiday. It is a time for LOVE...and let me tell you, that with love, comes spending money (no offense, but its the truth).

Valentines Day brings people together. People get together, get married, have a family, buy a house, car, you name it. Much of our economy depends on couples. For example, cars like SUV's are bought for the family. I'm not really sure there is a single old man driving around a brand new 2007 SUV.

True love drives people to spend much of their money, which is all helped by Valentines Day.

Paul Moustoukas

Anonymous said...

by Daniel

Refering to Kristen's comment, i agree that restaurants would benefit greatly from Valentine's Day. Not only do they recieve the increased revenue, but they ensure business for future meals. People look for special restaurants for special occasions. They look for places they do not normally consider. Therefore, if a restaurant is new, but gets lots of business for Valentine's Day it can kind of jump start the business. People tell people they know about the restaurant and the word spreads. Also, I am not sure I agree with the the giving of candy being cancelled out by the recieving. Women do most of the recieving on Valentine's day. The benefit of the holiday in terms of gifts is much higher for women than men.

Anonymous said...

It is very true that v-day causes people to spend a lot more money than usual on eating out and candy and things like that. Therefore, as several people have mentioned, the demand for such goods would increase. However, you also have to realize that the demand for other expensive goods which would not pertain to valentines day gift spending would greatly decrease. Since many people are splurging for their loved ones in certain v-day appropriate gifts, they will probably steer clear of spending a lot of money on other gifts or services on this day. Another random but crutial difference may also be the increased demand for babysitters. Since parents would often be going out on v-day, they would need babysitters, who would then recieve money for their service which would go back into the economy through whatever they decided to spend it on.

Elisabeth Bentley said...

Most people are focusing on the happy people during V-day, but you know the lonely people are probably splurging just as much. I mean, single lonely people probably find V-day to not be so lovey. However, they probably still contribute to stimulating the economy a little more on that day because they need comforting. Like.. comfort food! I mean, i bet icecream and sad movies are huge for those without a valentine, instead replacing their dream guy/girl with a sappy movie and food. On the other hand, V-day may give them a kickstart on the finding-a-mate goal, so i could definitely see gym memberships soaring, tanning beds getting more business, and maybe even some plastic surgeons having a rush of extreme makeover candidates.

Anonymous said...

I agree with what Paul said, sure flower sales, chocolate sales, and restaurant's revenues are all boosted on Valentine's Day, but they real economic boost comes from what happens as a result of V-day.

For example, shy Johnny finally gets enough courage to ask Linda out cause its v-day and he feels lonely and depressed. John and Linda get together, go to around 50 dinners, spending hundreds of dollars on gifts for eachother, gas to drive and see eachother, etc. Eventually, they fall in love, get married (very expensive these days), buy a house, furnish the house, buy a car, have kids, buy them things, etc. Sure, lots of people go out and buy jewelry and nice things for their significant other on Valentine's Day, but the real money lies in what results because of the love that the day promotes. Cheesy? Completely, but thats my answer and I'm sticking with it.

-Stephen D.

Sam Ulrich said...

Valentine's day is a day created not to celebrate love or your "significant other" but to help card companies and chocolate companies and jewelery companies make money. This is their form of christmas. The time of year when a two dollar chocolate rose turns into a five dollar chocolate rose and a normal box of chocolates that any other time of the year would cost only 10 bucks costs 20. The holiday is purely economical and society has based itself around making you feel bad if you dont celebrate it.

slimlim said...

We owe a shoe business. So I apply for everybody gets a day off from work, go buy a pair of hiking boots and goes for a 20 kms walk. That would be good for the shoe industry, people would loose at least 2 pounds of weight and they would know what the day was good for other than Veterans day or Columbus day or any other dont know what that´s good for.