Ebenezer-nomics
As the leaves begin to turn and the air gets colder, I am dreaming of a White Christmas. The most wonderful time of the year is upon us: Holiday Movie Season. It is a time of pink bunny suits and hearts that grow three sizes in one day. The light and cheerful movie season is a welcome reprieve from the challenges of the Pandemic.
The Pandemic has been a season of hard choices. Should my family get vaccinated? Should I go back to work? Should I use all of my kitchen storage space for toilet paper? Should I adopt a Pandemic puppy? [See a photo of my Pandemic puppy below because who doesn’t need more cute puppies in their lives?] Should I order my Hickory Honey Ham early? Should I replace the holiday bonuses with enrollments in the Jelly of the Month Club? In the midst of these hard choices, Economics is there to guide us.
Economics is the study of choices. [Some say Economics is the study of scarcity, but scarcity is simply what forces us to make choices. So, I repeat: Economics is the study of choices.] When economists study people’s choices, we often assume the person is always rational. We call this person Homo Economicus – a perfectly rational being that is clearly different than our own Homo Sapiens.
Homo Sapiens have often been accused of making irrational decisions in their heyday. See the Turbo Man mania for reference. A recent cultural trend of FOMO – the Fear Of Missing Out – has been under attack for its irrationality. However, I disagree. I think my students’ phobia of missing out on some meaningful experience is valid and even rational.
This fear stems from what economists call “opportunity cost.” Opportunity cost is what you would have done if you didn’t do what you did do. [Cue eyeroll from all of my previous students – yes, Opportunity Cost Theory strikes again!] When we make decisions, we weigh the costs and the benefits of that decision. One of those costs is what we give up when we make our final choice. If we stay late at work, then we miss making snow angels for two hours with our adult son who has an affinity for elf culture. If we sleep late, then we accidentally leave our son home alone at the mercy of the Wet Bandits.
So the next time you are faced with a difficult decision this holiday season, I encourage you to embrace your FOMO. Remember your friendly neighborhood economist and include your opportunity cost in your decision. I Triple Dog Dare You! What are you giving up to be here right now? Is it really worth it in the long run? Or instead… do you want to build a snowman? [It doesn’t have to be a snowman.]
Yours Rationally,
Chelsea T. Dowell
Economist and Holiday Movie Enthusiast
Special thanks to Jake – the former high school sweetheart who runs the Christmas tree farm; drives an old, beat-up, red pick-up truck; and got the girl too busy with her career to fall in love – for winning the gingerbread contest that saved the family business all by Christmas Eve.
[Warning: This article may cause rational FOMO. If any of the movie references are unrecognizable to you, then you are most certainly missing out. Fear not. A complete list of movies is available upon enrollment in your next Economics class. Contact Prof. Dowell for more information.]
Chelsea Dowell, M.S.
Assistant Professor Economics
chelsea.dowell@kwc.edu
270-852-3192