The Price Point Vol. 116 Issue 5

The Price Point is a series written by News Editor Brendan Tan and News writer Amrit Das, covering recent economic events and providing Stuyvesant students with an easy understanding of critical economics concepts that affect our day-to-day lives.

As Stuyvesant students prepare to enter the world, understanding the economy becomes an essential skill. In today’s society, knowledge of economics provides us with a foundation for navigating financial issues, understanding the effects of public policy on the market, and making informed decisions about our own personal finances.

Halloween: Behavioral Economics

Each year in October, consumers flock to buy pumpkins and overpriced costumes even if unplanned. Why does that seem to happen all the time? Behavioral economics explains it as herd behavior—following the actions of others without actually considering the options. When the fear of missing out is added to the equation,there is an amazing opportunity for companies and marketers to squeeze revenue out of this limited-time event with special offers and seasonal packaging, causing people to buy more than they need.

Halloween: Labor Economics

Besides bringing candy and costumes, Halloween creates a temporary spike in jobs such as haunted house performers and employees of seasonal stores, although these jobs are often short-term, low-wage, and lack the benefits of most standard jobs. However, despite these poor working conditions, many operations depend on this cheap, flexible labor in order to make a profit and contribute to the Halloween economy, often referred to in labor economics as “just-in-time” staffing, where businesses only hire workers when demand spikes and lay them off right after, creating economic insecurity and unstable employment.

Halloween: Long-Term Effects

Halloween is a busy time of year for many. Parents chase kids looking to purchase costumes that fit just right, while tons of candy flies right off the shelf—much to the dentists’ disappointment. This economic activity is, understandably, quite great, with billions spent by consumers. Remarkably, there is a whole debate on the effects of such spending. Economists, as with many issues, are camped in two fields. One field argues that this increased spending on candies diverts money from other industries, such as necessities or other needed services. The opportunity costs seem to be greater than the value earned. Other groups of economists believe that this short, yet sweet, burst activity actually causes the economy to expand to adjust to demand and spending. Nevertheless, who knew that one of your favorite holidays could lead to so much economic debate?

Halloween: The Pumpkin Industry

Halloween has many hallmarks, costumes, candies, houses lined with ghosts, and… pumpkins! The demand for so many pumpkins during Halloween actually boosts the price of such pumpkins, often due to the behavioral economics mentioned above. A lot of companies are quick to also adapt to the pumpkin craze, such as Starbucks with its famous Pumpkin Spice Latte. Pumpkin farmers all over the world reap the benefits of consumers putting so much demand and money into their industry. However, waste is a big issue, and pumpkin carvings often lead to a lot of pumpkin waste, which costs tons of dollars and has environmental costs. Enjoy carving, but maybe try using it for an early pumpkin pie!