How to Give the Most Efficient Christmas Gifts, According to Economists

iStock.com/YinYang
iStock.com/YinYang

For an economist, the holiday season can seem wasteful. Or at least, it does to the economists behind the Marginal Revolution University weekly video series, Tyler Cowen and Alex Tabarrok. In their latest video, the duo tackle the most efficient way to cross people off your Christmas list. (Just a warning: You may not like the answer.)

From an economist’s perspective, gifting can be a positive trade or a negative one. If you get a gift you don’t like, it’s worth less to you than it cost the person who bought it. For example, your great-aunt may have spent $10 buying you socks, but you would probably much rather have the cash. But if you get a gift you do enjoy, it’s worth more than just its cash value. If your best friend gave you a book they loved, it might not be worth much in a store—used books aren’t exactly money-makers—but you’ll likely feel more strongly about it than its, say, $5 market value would dictate.

In general, though, it seems that we often don’t value the gifts we receive quite as much as the person buying the gift might hope. Research by economist Joel Waldfogel has found that on average, people tend to spend around $50 per gift, but recipients tend to value those gifts at only $40. Add up how many gifts you buy each holiday season, and you’re talking about significant chunks of wasted cash.

Speaking of cash, according to Cowen and Tabarrok, as unsentimental as it might feel, cash is technically the most efficient gift, economically speaking. Everyone likes it. A $20 bill costs the gift-giver $20, and it’s worth $20 to the recipient. No waste!

Hear their explanation in the video below, and stick around until the end to learn more about the most efficient ways to give to charity—which you definitely should be doing before the tax deadline on December 31. If you haven't been convinced that cash is the way to go, we've got plenty of gift ideas to help you figure out what to get every person in your life.

[h/t Digg]

Why Do People Toss Beads During Mardi Gras?

Kameleon007/iStock via Getty Images
Kameleon007/iStock via Getty Images

Each year, more than 1 million people descend on New Orleans for Mardi Gras, an organized parade of debauchery and alcohol-induced torpor that may be the closest thing modern civilization has to the excesses of ancient Rome. Saturating the scene on Bourbon Street are plastic beads, handed or tossed to partygoers as a kind of currency. Some bare their breasts or offer booze in exchange for the tokens; others catch them in the air and wear the layers around their necks. Roughly 25 million pounds of beads are in circulation annually, making them as much a part of the Fat Tuesday celebration as sugary cocktails and King Cake.

Traditions and rituals can be hard to pin down, but Mardi Gras historians believe the idea of distributing trinkets began in the 1870s or 1880s, several hundred years after French settlers introduced the celebration to Louisiana in the 1600s. Party organizers—known locally as krewes—handed out baubles and other shiny objects to revelers to help commemorate the occasion. Some of them threw chocolate-covered almonds. They were joined by more mischievous attendees, who threw dirt or flour on people in an effort to stir up a little bit of trouble.

Why beads? Tiny tokens that represent wealth, health, and other prosperity have been a part of human history for centuries. In Egypt, tokens were handed out in the hopes they would guarantee a happy afterlife; the abacus, or bead-based system of accounting, used trinkets to perform calculations; pagan pre-winter rituals had people throwing grains into fields hoping to appease gods that would nourish their crops.

Humans, argues archaeologist Laurie Wilkie, display "bead lust," or a penchant for shiny objects. It's one possible reason why Mardi Gras attracts so many people with their arms in the air, elated to receive a gift of cheap plastic.

Photo of a well-dressed bulldog celebrating Mardi Gras in New Orleans.
Mario Tama, Getty Images

The early beads were made of glass before more efficient production methods overseas led to an influx of plastic beads in the 1960s. Unlike some of the more organic predecessors, these beads have come under criticism for being a source of health problems and pollution. Made from petroleum, they often harbor lead that seeps into the soil and rubs off on hands. (One estimate puts the lead deposit after a Mardi Gras celebration at 4000 pounds.) In 2017, New Orleans paid $7 million in clean-up costs to remove discarded beads from drain basins. In 2018, they installed gutter guards to prevent the necklaces from getting into the system in the first place. Meanwhile, scientists have been working to create an even more eco-friendly version of the beads—like a biodegradable version made from microalgae.

Environmental hazards aside, the beads of Mardi Gras have become as much a holiday staple as Christmas stockings or Thanksgiving turkeys. But the passion and desperate need for them is only temporary; in 2018, 46 tons of the beads were removed from just five blocks of the main parade route on Charles Street. And no bacchanal should leave that much bad juju behind.

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8 Things That Happened on Leap Day

On Leap Day in 1692, the first warrants were issued in the Salem Witch Trials.
On Leap Day in 1692, the first warrants were issued in the Salem Witch Trials.
Wikimedia Commons // Public Domain

Since Leap Day comes just once every four years, events that happen on February 29 are somewhat rare. Check out these eight events that are extra memorable thanks to their timing.

1. On Leap Day in 1940, Hattie McDaniel won an Academy Award.

Actress Hattie McDaniel took home an Oscar for Best Supporting Actress at the 1940 Academy Awards for her role as Mammy in Gone with the Wind. The win made her the first African American to receive the award.

2. Buddy Holly’s lost glasses were found on Leap Day in 1959.

Buddy Holly in his signature glasses
Buddy Holly in his signature glasses.
Wikimedia Commons // Public Domain

The singer's famous glasses disappeared for more than two decades after he died in a plane crash near Clear Lake, Iowa, in 1959. Holly’s trademark frames, along with the Big Bopper’s watch, were thrown clear of the plane wreckage. The items remained buried in the snow until the spring thaw, when they were turned over to the County Sheriff’s office and filed away in a sealed manila envelope, where they were forgotten. The envelope was rediscovered in 1980 by County Sheriff Jerry Allen, who came across it while looking for old court records. The discovery was announced on February 29, 1980. The glasses were returned to Holly’s widow, Maria Elena.

3. The Henriksen siblings—all of them—were born on Leap Day.

On February 29, 1960, Heidi Henriksen was born. Her brother, Olav, joined the family exactly four years later. And in 1968, to the day, Leif-Martin Henriksen entered the world. The Norwegian siblings held the Guinness record for most babies born on a Leap Day until 2012, when the Estes family from Utah tied them: Xavier Estes was born on February 29, 2004; Remington Estes in 2008; and Jade Estes in 2012.

4. Davy Jones died on Leap Day in 2012.

In 2012, the Monkee passed away after suffering a heart attack. He was just 66, leaving many fans in shock at his unexpected death.

5. Hank Aaron became the highest-paid Major League Baseball Player on Leap Day.

A $200,000-a-year contract might seem like peanuts for a MLB player today, but by 1972 standards, it was a big deal. So big, in fact, that the three-year contract Aaron inked to play for the Atlanta Braves made him the highest paid baseball player in the league.

6. The future Pope John Paul II was nearly killed on Leap Day.

Pope John Paul II riding in the Popemobile
Pope John Paul II riding in the Popemobile in 2004.

Back when he was just 24-year-old Karol Wojtyla, Pope John Paul II was walking home when a German army truck hit him and left him on the road for dead. The driver of a lumber truck picked him up and took him to the hospital, where Wojtyla remained unconscious for nine hours. It’s said that the incident inspired him to switch to a spiritual career path.

7. Family Circus debuted on Leap Day in 1960.

On February 29, 1960, Bil Keane’s long-running comic strip debuted as The Family Circle. Inspired by Keane’s own wife and children, Family Circus is now drawn by Keane’s youngest son, Jeff—the inspiration for “Jeffy” in the comic strip.

8. The first warrants were issued in the Salem Witch Trials on Leap Day.

Salem residents Sarah Good, Sarah Osborne, and Tituba were accused of witchcraft on February 29, 1692. After refusing to confess, Good was hanged and Osborne died in prison; Tituba, a slave, admitted to her supposed crimes and was released from jail a year later.

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