Christmas, a time for charity
The Christmas season is upon us once again. For many local retailers, the Christmas season is a make-or-break time. With our area’s booming economy, record lows in unemployment and wages being pushed up by the competition for workers, many of us find ourselves with more money to spend for Christmas. More money doesn’t mean unlimited bank accounts, and so we need to prioritize our Christmas spending, as well as budget our time this holiday season.
As an economist, I look at human behavior, whether spending or use of time, as matters of rational decisions. All that really means is that people make choices, such as spending and time-use choices, in their own self interest. Critics of this "economic thinking" seem to think that this means that economists not only mistakenly assume that people are selfish, but that economists preach selfishness. Along with misunderstandings of free-market economics is the mistaken belief that our capitalist system promotes selfishness.
Nothing could be further from the truth. Self-interested behavior only means that people do things that they think are important, that people behave according to their real values, not necessarily according to their professed values. It also means that economists, like everyone else, can often deduce values by what people do, instead of what they say. (Of course, we, as adults, know that children learn values from what they see us do.)
Our free-market, capitalist system is one that works well, even if people do not have charitable values. But it also works well if they do. In fact, charitable giving is more likely in a capitalist system.
While out Christmas shopping, my older two children asked me what MDA spelled. I told them that it spelled MDA, but that those letters stood for the Muscular Dystrophy Association, and I explained what MDA did. They asked why they were selling suckers for a quarter. My older two ended up with MDA suckers. In a non-capitalist system, private enterprise for any purpose is closely scrutinized and regulated, and the red tape to set up such displays is very discouraging.
Charitable giving is usually higher in capitalist systems for another reason. Poor people, such as those in Cuba or China, have very little to give to charity. When it is difficult to help oneself, how can one provide for others. The principle is the same as that behind the directions people are given for administering oxygen to themselves before helping small ones in the case of a loss in airplane cabin pressure.
Adam Smith, the founder of modern economics, wrote that people tend to their own and their family’s wants first, then to those closest around them, their neighbors and those in their community, then their countrymen, and then those in other countries. He recognized the important role of charitable giving in society.
This Christmas season is a time to reflect upon our values, what we really think is important. Our loved ones, our spouses and children, our brothers, sisters, mothers and fathers are all very important and, of course, are surely not to be neglected at Christmas. But what else is important to us? What do we really think is important? What can we do about the things we value?
Don’t forget the workers who stay late or come in early to make sure the work gets done. Don’t forget the folks who helped get you through tough times. Don’t forget those who live here in our own community who you may never see because they are elderly or shut-ins.
A Personal Christmas Wish
To all of you who take the time to read my column here, to those who have given me kind words of encouragement (sometimes single kind words) and to those who find themselves either agreeing or disagreeing with positions I have taken, my family and I wish you and your family a very, merry Christmas. And may your favorite teams win in the bowl games!