Halloween and its Positive Impact on Our Economy
Morgan Wallenfang
Mrs. Straub
Economics
November 3, 2014
Halloween and its Positive Impact on Our Economy
Halloween is a holiday you wished happened more than once a year or wished it never would happen at all. It’s a night when little kids, adults and even pets can get dressed up for one night out of the year and get loads of candy. Stores say Halloween is one of the best holidays from the massive demand for candy, costumes and decorations. Experts estimate that this year alone the GDP consumption of consumers will spend about $7 million on Halloween merchandise. Though the economy is low right now, it’s not going to stop consumers from buying Halloween merchandise, and the more consumers buy the more money it will bring into the economy.
Candy shops alone say Halloween is one of the best months, because it brings in 8% of their annual sales from selling enormous amounts of candy. Although, the economy took a hit in 2011 of $1.81 billion, this year it’s estimated that people in the United States will spend even more with spending an average of $72 dollars totaling up to $2.7 billion being spent on candy. With the huge demand for candy always around Halloween, stores have to supply enough candy and still be able to stick to the equilibrium price. So, stores selling candy can still make a profit and the companies producing the candy will still be able to make a profit.
Candy isn’t the only thing that makes Halloween; costumes are also a big part of Halloween. In total, costumes will add up to be $2.5 billion this year alone. Plus, this year Halloween falls on a Friday, in result an expected increase in GDP consumption for adults. Halloween falling onto Friday means more adults will attend parties and want to dress up. “In fact, consumers this year are spending $1.4 billion on adult costumes compared to $1.1 billion for children's costumes” (Peterson). Also, there is an estimate $350 million to be spent on pet costumes this year alone (Peterson). Halloween costumes will help the market with a total of $2.8 billion dollars this year.
Outrageous costumes and delicious sweets aren’t the only parts of Halloween that will be bringing in money; haunted houses also bring in huge amounts of money each year. There are around 4,000 haunted houses in the world and each can cost around $13 to $30 per ticket “Hauntworld Magazine estimates they make up a $2 billion industry” (Guillot). Haunted house still bring in big bucks because people enjoy getting scared. For example, I enjoy going to haunted houses and getting scared out of my pants because, each year technology is advancing and each year haunted houses GDP invest in the new technology and doing so, haunted houses are able to bring in large crowds each year.
To think Halloween will bring in about $7 billion this year to the economy, and that’ll we will spend an average of $72 this year on Halloween is crazy. Halloween definitely picks up our economy by being able to bring money into small businesses and the economy as a whole.
Works Cited
Guillot, Craig. “Petrified Profits: A Haunted House Operator Tells His Tale”. Upstart. American City Business Journals. 24 Oct. 2011. Web. 3 Nov. 2014.
Fried, Carla. “The Real Cost of Humiliating Pets on Halloween”. Bloomberg. Bloomberg L.P. 22 Oct. 2012. Web. 3 Nov. 2014.
Peterson, Kim. “American’s opening their wallets for Halloween”. CBSNews.com. CBS Interactive Inc. 21 Oct. 2014. Web. 3 Nov. 2014.
Petrecca, Laura. "Halloween to Scare up Big Bucks for Retailers." USA Today. Gannett, 19 Oct. 2014. Web. 25 Oct. 2014.
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