Economics of Christmas

Christmas is typically the largest annual economic stimulus for many nations. Sales increase dramatically in almost all retail areas and shops introduce new products as people purchase gifts, decorations, and supplies. In the U.S., the Christmas shopping season generally begins on Black Friday, the day after Thanksgiving, though many stores start selling Christmas items in October/November (and in the UK, even September/October).
More businesses and stores close on Christmas Day than any other day of the year. In the United Kingdom, the Christmas Day (Trading) Act 2004 prevents all large shops from trading on Christmas Day.
Most economists agree, however, that Christmas produces a deadweight loss under orthodox microeconomic theory, due to the surge in gift-giving. This loss is calculated as the difference between what the gift giver spent on the item and what the gift receiver would have paid for the item. It is estimated that in 2001 Christmas resulted in a $4 billion deadweight loss in the U.S. alone.[27][28] Because of complicating factors, this analysis is sometimes used to discuss possible flaws in current microeconomic theory.
Other deadweight losses include the effects of Christmas on the environment and the fact that material gifts are often perceived as white elephants, imposing cost for upkeep and storage and contributing to clutter. This is mitigated by white elephant gift exchanges in which participants make the best of their white elephants, and by alternative giving.
In North America, film studios release many high-budget movies in the holiday season, including Christmas films, fantasy movies or high-tone dramas with rich production values.