FC NOW: The Fast Company Weblog
December 20, 2004
A Modest Proposal
If capitalism is supposedly such a paragon of rationality and efficiency, then how come many retail stores are insanely crowded for one month of the year while they often operate at a financial loss the rest of the time? I don't want to sound like Scrooge or the Grinch here (or, to steal a line from "Sex and the City," like the "Mensch Who Stole Christmas"), but it doesn't make sense.
So here's my modest proposal: why not redistribute gift-giving to several times throughout the year? Perhaps a lottery system could decide who does their holiday shopping in April or August and who gets December?
Posted by Alan Deutschman at December 20, 2004 2:06 PM | Category: sales + marketing |
4 Comments
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Not to stick up for capitalism, but holidays and corporation's adoption of them as a time to push product is pretty far out of line with pure "capitalist" economic theory.
While we're at it, why not break up corporations so that prices can actually find a natural balance, rather than being artificially set with loss leaders, mail-in-rebates, and planned obsolescence.
It's a wacky buisness world we've made for ourselves. Take a look at some more in today's IDFuel
You already have the option to distribute your shopping throughout the year. My mother typically finishes her Christmas shopping some time in January, and finishes wrapping shortly thereafter.
Dale
Alan, I like your thinking on the subject. The only problem might be that consumer behavior, under Capitalism or not, isn't rationale. Quite the contrary. So is it 'crazy' that we have 'Black Thursday' -- the day when many retailers achieve their Break-Even and turn to 'Black' (profit) for the year? Not at all. In fact, the whole commercialism of the 'end-of-year' sales is just proof of how much non-sensical prodding most of us slothful Humans require to expend monies with merchants.
But to relate back to your initial comment, I doubt that Capitalism and 'rationality' ever were connected and, truth be told, they're more likely not than anything.
Happy Holidays and a Super New Year!
Alan,
You're assuming that any social system itself can be rational. It can't be - it doesn't have a brain, and can't make choices... only people can. It is rational, however, to have a social system where people are free to *be* rational (i.e. to think) - capitalism. I couldn't disagree more with Bill - capitalism is quite rational.
Capitalism simply preserves each individual's freedom to act in their own interests, economic and otherwise. Because it preserves individual choice rather than limiting it, capitalism is the most efficient and productive social system that exists.
So, thanks to capitalism, you're free to do your shopping however and whenever you want. If you want to do your shopping some other time to avoid the rush, like Dale commented, go ahead. (Smart idea, IMO, although due to time constraints many people prioritize by must-finish date - sometimes quite rational behavior in the face of constraints.)
Take away people's freedom to choose, however, and you no longer have capitalism - you have a planned economy. A lottery for gift-buying? How about a lottery for purchasing groceries? (Extreme, but in line with your suggestion.) No thank you.
Retail stores exist because they *can* operate in the black, and "Black Thursday" is how the market developed to accomodate the shift in shopper demand associated with seasonal gift-giving. Even if this demand were distributed evenly throughout the year, the only reason retail stores exist is because they are economically productive.
I don't like crowded stores any more than it sounds like you do - that's why I try not to shop when it's busy. :-)