Love, money and manipulating the American spender.
Economics and Valentine's Day go together like broccoli and chocolate. But we're a business site, so we can't help but see the news through supply and demand -- even when the news is candy hearts and flowers.
The average person will shell out $116.21 on Valentine's Day merchandise this year, up 12.8 percent over last year's $103.00, according to estimates from the;
National Retail Foundation. That will bring total holiday spending to about $15.7 billion. Sixteen billion doesn't look like much when you put it next to our $14 trillion economy.
But in some industries, it's absolutely vital. Valentine's Day is Christmas for florists. The same way some electronic stores make up to half their yearly revenue in end-of-year shopping, some florists make up to 40% of their annual haul in February sales.
You'd think stats like this would make economists fall in love with Valentine's, especially in an economy with skinny wallets. Consumption makes up more than half of GDP by some measures, so what's not to like about a holiday that compels us to spend money -- out of love, out of guilt, or most likely some combination thereof? The Atlantic Wire finds a decidedly unromatic-sounding economist (like finding ice in a freezer, I guess) to break it down:
"There's an underlying level of commercial exchange and if you were an economist, you would just look at that as the main reason that we have Valentine's Day," [Duke professor Dan Ariely] says, reminding us, somewhat tangentially, of why some economists have trouble finding dates on this special day.
In other words, the main reason why have Valentine's Day is to stimulate commerce. It's a dismal view, but hey, it's a dismal science.
But it's not obvious that a day created to stimulate commerce really stimulates. Think about how Valentine's day encourages you to think differently about buying for that special someone. If I want to buy her a necklace, maybe I'll wait until February 14. If I want to take her to her favorite restaurant, maybe I'll wait until February 14. Seen in this light, we cannot say the Valentine's Day "stimulus" is $16 billion because those necklaces and dinners would have been bought, anyway. Valentine's didn't create economic activity, it just concentrated it.
If this is starting to sound familiar, it's only because Washington has been using stimulus policy to create it own little Valentine's Days for the economy in the last two years. We had a housing tax credit to concentrate home purchases and a Cash-for-Clunkers program to move auto purchases. In December, we got a one-year payroll tax holiday (that word ain't no coincidence) with a special one-year business tax credit to encourage families and businesses to get into the holiday spirit in 2011 and spend, spend, spend.
Some economists will argue that all these Valentine's gifts to the economy do nothing more than steal demand from the past and future. They might be right. Thinking back to February 14, some Valentine's gifts would have happened anyway ... but some couples really are inspired by the invention of Valentine's Day. Can you honestly say that the mythology of the roses and rom-coms and the chocolate rabbits never inspired you to splurge on a nicer hotel room, or order an extra bottle of wine or dessert?
That extra motivation can pay off in two ways down the line. First, it puts more money in the pockets of hotels and restaurants. Second, it might create an expectation for more expensive nights down the road, appreciably raising overall relationship spending.
The bottom line is that we don't know if Valentine's Day really stimulate the economy any more than we know the impact of any other stimulus. Might as well put down our swords for a day, and focus our attention on that special someone -- or maybe just the chocolate bunny.
The winners of the 27th annual National Geographic Traveler Photo Contest have just been announced.
The winners of the 27th annual National Geographic Traveler Photo Contest have just been announced. Winning first prize, Anuar Patjane Floriuk of Tehuacán, Mexico, will receive an eight-day photo expedition for two to Costa Rica and the Panama Canal for a photograph of divers swimming near a humpback whale off the western coast of Mexico. Here, National Geographic has shared all of this year’s winners, gathered from four categories: Travel Portraits, Outdoor Scenes, Sense of Place, and Spontaneous Moments. Captions by the photographers.
Many psychiatrists believe that a new approach to diagnosing and treating depression—linking individual symptoms to their underlying mechanisms—is needed for research to move forward.
In his Aphorisms, Hippocrates defined melancholia, an early understanding of depression, as a state of “fears and despondencies, if they last a long time.” It was caused, he believed, by an excess of bile in the body (the word “melancholia” is ancient Greek for “black bile”).
Ever since then, doctors have struggled to create a more precise and accurate definition of the illness that still isn’t well understood. In the 1920s, the German psychiatrist Kurt Schneider argued that depression could be divided into two separate conditions, each requiring a different form of treatment: depression that resulted from changes in mood, which he called “endogenous depression,” and depression resulting from reactions to outside events, or “reactive depression.” His theory was challenged in 1926, when the British psychologist Edward Mapother argued in the British Medical Journal that there was no evidence for two distinct types of depression, and that the apparent differences between depression patients were just differences in the severity of the condition.
What would the American culture wars look like if they were less about “values” and more about Jesus?
Evangelical Christianity has long had a stranglehold on how Americans imagine public faith. Vague invocations of “religion”—whether it’s “religion vs. science” or “religious freedom”—usually really mean “conservative, Protestant, evangelical Christianity,” and this assumption inevitably frames debates about American belief. For the other three-quarters of the population—Catholics, Jews, other Protestants, Muslims, Hindus, secular Americans, Buddhists, Wiccans, etc.—this can be infuriating. For some evangelicals, it’s a sign of success, a linguistic triumph of the culture wars.
But not for Russell Moore. In 2013, the 43-year-old theologian became the head of the Ethics and Religious Liberty Commission, the political nerve center of the Southern Baptist Convention. His predecessor, Richard Land, prayed with George W. Bush, played hardball with Democrats, and helped make evangelicals a quintessentially Republican voting bloc.
Why the obsession with our kids’ happiness may be dooming them to unhappy adulthoods. A therapist and mother reports.
If there’s one thing I learned in graduate school, it’s that the poet Philip Larkin was right. (“They fuck you up, your mum and dad, / They may not mean to, but they do.”) At the time, I was a new mom with an infant son, and I’d decided to go back to school for a degree in clinical psychology. With baby on the brain and term papers to write, I couldn’t ignore the barrage of research showing how easy it is to screw up your kids. Of course, everyone knows that growing up with “Mommy Dearest” produces a very different child from one raised by, say, a loving PTA president who has milk and homemade cookies waiting after school. But in that space between Joan Crawford and June Cleaver, where most of us fall, it seemed like a lot could go wrong in the kid-raising department.
The jobs that are least vulnerable to automation tend to be held by women.
Many economists and technologists believe the world is on the brink of a new industrial revolution, in which advances in the field of artificial intelligence will obsolete human labor at an unforgiving pace. Two Oxford researchers recently analyzed the skills required for more than 700 different occupations to determine how many of them would be susceptible to automation in the near future, and the news was not good: They concluded that machines are likely to take over 47 percent of today’s jobs within a few decades.
This is a dire prediction, but one whose consequences will not fall upon society evenly. A close look at the data reveals a surprising pattern: The jobs performed primarily by women are relatively safe, while those typically performed by men are at risk.
Ecuador tried to rewrite the rules of human migration—only to recoil at the results.
LAGO AGRIO, Ecuador—Hitler was behind the wheel, racing through a blur of jungle toward Ecuador’s border with Colombia. Only when an immigration officer in green fatigues hurried out from a checkpoint, yelling, did Hitler pump the brakes. The policeman asked if we wanted our passports stamped, and all four of us in the truck—an American, a Dane, a Colombian, and an Ecuadorian—declined. With that, the official waved goodbye and we lurched onward to Colombia.
The river that marks the border between the countries is anything but an impassable boundary. Along its length are dozens of illicit crossings, and the movement of people—and problems—from one bank to the other is a fact of daily life. From a bridge, I could see, on the Colombian side, a black plume of smoke rising from an oil pipeline that FARC rebels had reportedly bombed the previous day. On the Ecuadorian side was a ghost town of ramshackle sheds that those same guerrillas were known to rent for a few hours of partying.
Exceptional nonfiction stories from 2014 that are still worth encountering today
Each year, I keep a running list of exceptional nonfiction that I encounter as I publish The Best ofJournalism, an email newsletter that I send out once or twice a week. This is my annual attempt to bring some of those stories to a wider audience. I could not read or note every worthy article that was published last calendar year and I haven't included any paywalled articles or anything published at The Atlantic. But everything that follows is worthy of wider attention and engagement.
Paul faced danger, Ani and Ray faced each other, and Frank faced some career decisions.
This is what happens when you devote two-thirds of a season to scene after scene after scene of Frank and Jordan’s Baby Problems, and Frank Shaking Guys Down, and Look How Fucked Up Ray and Ani Are, and Melancholy Singer in the Dive Bar Yet Again—and then you suddenly realize that with only a couple episodes left you haven’t offered even a rudimentary outline of the central plot.
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
It’s impossible to “solve” the Iranian nuclear threat. This agreement is the next best thing.
Having carefully reviewed the lengthy and complex agreement negotiated by the United States and its international partners with Iran, I have reached the following conclusion: If I were a member of Congress, I would vote yes on the deal. Here are nine reasons why.
1. No one has identified a better feasible alternative. Before negotiations halted its nuclear advance, Iran had marched relentlessly down the field from 10 years away from a bomb to two months from that goal line. In response, the United States and its partners imposed a series of sanctions that have had a significant impact on Iran’s economy, driving it to negotiate. That strategy worked, and resulted in a deal. In the absence of this agreement, the most likely outcome would be that the parties resume doing what they were doing before the freeze began: Iran installing more centrifuges, accumulating a larger stockpile of bomb-usable material, shrinking the time required to build a bomb; the U.S. resuming an effort to impose more severe sanctions on Iran. Alternatively, Israel or the United States could conduct military strikes on Iran’s nuclear facilities, setting back the Iranian program by two years, or perhaps even three. But that option risks wider war in the Middle East, an Iran even more determined to acquire a bomb, and the collapse of consensus among American allies.