Scroogenomics argues that unless you know EXACTLY what the person you’re giving a gift to wants, you’re wasting your time and money. When people receive gifts they don’t really want, Joel Waldfogel’s research says it hurts the U.S. economy. A lot. Waldfogel says we waste $13 billion a year in bad gifting. Waldfogel’s advice is to give cash (or gift cards) where the recipient can buy what they really want. Or, you can do what Diane and I do. When we first were married, we had Christmas gifting disasters galore. Don’t even mention my gift of a Chinese wok to my wife unless you want to experience the Wrath of Diane. Then, we came up with the idea of Diane buying the gifts she would like to receive (mostly clothes) and I bought the gifts I would want to see under the tree on Christmas Day (mostly books, CDs, and DVDs). We would wrap them, exchange them with each other, and pretend to be surprised on Christmas when we would open them in front of the kids (but they caught on pretty fast). GRADE: B+
Jackie usually likes to shop for the kids, especially dresses for the girls and books. This year we gave gift cards to Toys R Us and American Girl to our nieces and nephews.
Most of my bad gifts have come from my mother, in teh form of clothes I would never wear. The lowlight was a pair of my father’s pants that no longer fit him! This would have been bad enough but I’m several inches taller than he is.
I mean, come on, give me a break!
This is exactly what SCROOGENOMICS is talking about, Jeff. People giving their friends and family the WRONG gifts. Everyone loses.
Actually, come to think of it I for one would love to hear the wok story.
You’ll have to get me very inebriated before I’d attempt to tell the Chinese wok story, Jeff. If you approach Diane with that request, you better be wearing a Kevlar vest!
The worst thing for me is to get clothing that’s too small. I’d rather get nothing than that. Your idea is very rational but Phil likes to be surprised (also why he never watches a movie twice) so we limp along giving bad gifts along with the occasional good one.
Waldfogel in SCROOGENOMICS argues that the value of a Bad Gift becomes zero, Patti. Clothing that’s too small that you never wear becomes worthless (unless you can return or exchange it for something you want). Unwanted gifts just pile up in the closet. It’s a waste.
That a badly chosen gift constitutes waste I understand. But doesn’t the whole engine of consumer spending — advertising, shopping malls, etc. — depend on the concept of getting people to buy crap they don’t need? (I’ve just been rereading Murder Must Advertise).
Was the Year of the Wok the year they ran the classic infomercial with the smooth British pitchman hawking the Genuine Hand Hammered Wok from the People’s Republic of China?
Once again, you’re right on the money, Art. Yes, the Genuine Hand Hammer Wok figured in the story. And, as someone who’s been on the receiving side of some of my gifts, you know well the reaction to a gift mis-fire.
Gift cards are nice, but so unimaginative. At least making a wish list gives some chance of a surprise, and still something a person wants. As for the theory, a gift is $$ spent, the economy likes that. A wrong git can be returned and another item gotten instead. What’s the problem?
off topic: we were going to see Avatar today, but wife is down with a nasty cold. Maybe later. Meanwhile I watched the first disk of the British TV series, Primeval and loved the first 3 episodes on the DVD. I pushed the next to the top of the queue. I hope the mails hurry hurry. As if.
The main problem with bad gifts is the transaction costs, Rick. All of the effort that went in to choosing the Wrong Gift is wasted. And, all the efforts to return the Wrong Gift and hopefully turn it into a Right Gift are additional costs. According to Waldfogel, all those costs add up to about $13 billion a year. Not a trivial sum. Sorry you haven’t seen AVATAR IN 3D yet, Rick. It’s amazing! I may be going to see it in IMAX tomorrow.
Linda bought me a gunk-filled figure that I was supposed to beat on to vent my anger. Getting it angered me, so I beat on it. In so doing I cut my hand on the base. I told her from then on to never buy me anything I didn’t specifically request. Not that it stopped her, and I have been the recipient of numerous unappreciated gifts over the years. Care to see my singing fish?
You are the Golden Example of Waldfogel’s gifting theories, Bob. Of course, you can ask Art Scott about some of my gifting faux pas and get a few laughs. Art once accused me of cleaning out my basement and sending it to him as Christmas presents!