FDR’s Faulty Economics

Americans are as capable of shopping on a Nov. 23 that falls before Thanksgiving as on a Nov. 23 that falls after

Letter to The WSJ. 

"Allen Torrey claims that if Thanksgiving were allowed to fall on the last Thursday of November instead of the now-established fourth Thursday, the result in years with five Thursdays would be to “curtail the Christmas shopping season and harm the national economy” (Letters, Dec. 2).

Not so. Americans are as capable of shopping on a Nov. 23 that falls before Thanksgiving as on a Nov. 23 that falls after. Why? Because the amount of money we spend on Christmas gifts is determined by our incomes, our consumer confidence and the price of goods. The number of calendar days between the two holidays is economically irrelevant.

Even if fewer days caused us to spend less on presents, that foregone money would either go toward other consumer purchases or be kept in savings that fund investments. There’s no reason to suppose that “aggregate demand” is affected by how much Americans spend on Christmas gifts—and, hence, no reason to suppose the economy would be harmed if holiday spending fell.

Veronique de Rugy

Arlington, Va."