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Light Unto the Wealth of Nations How Christmas displays illuminate a strong economy
Reason ^ | December 19, 2003 | Virginia Postrel

Posted on 12/19/2003 6:53:28 PM PST by RJCogburn

As Christmas lights go up on homes around the country, you've probably noticed that the displays seem to get more elaborate every year. No longer does decorating a single evergreen in the front yard suffice. Every tree demands its own ropes of light, wrapping trunks as well as branches. Ubiquitous icicle lights drape even the most generic tract home in sparkling abundance.

Arbiters of taste may clash over the merits of white versus colored bulbs, and energy Puritans may denounce the inessential use of electricity. But even stylistic snobs can't entirely deny the appeal of a thousand points of holiday light.

Today's lavish displays do more than brighten the night. They tell a story of economic progress. Like the electronic gadgets aimed at gift buyers, the tiny lights outlining rooflines and tree limbs illustrate new sources of growth, productivity, and prosperity. Aesthetic pleasure, they tell us, is an increasingly important source of economic value and hence of new jobs and business opportunities. And the same trends that boost living standards in other areas also make Christmas lights more abundant.

A holiday-lighting dollar simply goes further than it used to. Homeowners buying Christmas lights benefit from the same intense retail and manufacturing competition that have driven down prices and improved reliability in so many other industries, raising the American standard of living.

As a teenager in the mid-1980s, David VanderMolen's job was to buy and install holiday lights for his family's Charlotte, Michigan home. Each year his parents would give him $10, enough for two 35-light strings, each 20 feet long, from Kmart. If the weather wasn't too bad, a string of lights would last about three years. VanderMolen eventually built up a collection of 350 miniature lights, enough to make his house the most elaborately decorated in the neighborhood.

Today, that display would be nothing special. You can buy a 100-light string, nearly 50 feet long, for $2.44 at Wal-Mart. Even without adjusting for inflation, VanderMolen's old $10 annual budget would cover more lights in a single year than he could accumulate over seven years in the 1980s. Today's cheaper lights, mostly made in China, also last longer.

"The stuff now is so well made that you can put it up in November before it gets too cold or wet, and leave it up until a January thaw, and it doesn't all fall apart," says VanderMolen.

As a result, today's homeowners can put on light shows that would have made theme park news a generation ago. Says VanderMolen, "It is easy and inexpensive to put up a tasteful display, and not much more cost or effort to try and humiliate your weak-willed neighbors."

Not everyone wants to climb around on the roof, however, and not everyone has the skills to put together an attractive display. More and more homeowners are contracting out the lighting work, creating satisfying jobs that never existed before. It's part of the long-term trend toward greater and greater specialization. The business also illustrates just how experience improves productivity even in service industries.

Christmas Décor, based in Lubbock, Texas, has more than 350 franchise locations throughout the U.S. and Canada. The company estimates that its franchisees do more than $32 million in holiday light business a year. (At least four other national companies offer similar franchises.) Most franchisees are landscaping companies looking for ways to keep working through the slow winter months. Like the inventory controls that have improved efficiency in manufacturing, adding a holiday lighting service allows landscapers to avoid the boom and bust of hiring and laying off employees.

Franchisers like Christmas Décor give local contractors the benefits of scale-not only buying lights by the container load but learning from experience. Christmas Décor franchisees serve about 300,000 customers each year. "The information you receive from that kind of volume is scientific," says Brandon Stephens, the company's director of marketing. "If there's a problem, it's going to repeat."

If one local contractor figures out a way to save labor, the company incorporates the technique nationwide, changing its vendor specifications if necessary. To make wrapping tree branches more efficient, for instance, Christmas Décor has suppliers deliver lights in balls rather than lined up on cards, the way homeowners shopping at Wal-Mart find them.

Hiring a lighting contractor saves homeowners trouble and raises quality expectations, creating a ratchet effect that in turn generates more demand for specialists.

People who do the same job over and over again get better and better at it. They hang lights in more consistently attractive patterns. The more people see professional displays, the more they expect to be wowed. Although lighting contractors do some direct marketing, their most effective advertising is the impressively decorated house down the block. Exposure creates demand.

"The more lights that go up, the more lights that go up," says Tom Tolkacz, president of Swingle Tree Co., a Christmas Décor franchisee in Denver. His business has about 70 employees during the holiday season, 20 to 30 more than before Swingle added the lighting franchise. (At its seasonal peak, the landscaping company employs about 200 people.) Its lighting business continued to grow right through the recession, posting some of its greatest gains ever in 2001 and 2002.

Most customers are two-income couples with homes valued at $400,000 or more, says Tolkacz, a "middle market" of people who would not have hired professionals in the past. Some less-affluent single parents also hire the company because they "don't want to get on the roof." The service appeals more to baby boomers than to the over-60 crowd, who tend to believe that hiring someone to install holiday lights is frivolous.

That disparaging attitude toward aesthetics affects us not only as consumers deciding where to spend our money but as citizens trying to understand the sources of future economic growth. We mourn the loss of manufacturing jobs—"real jobs"—and ignore growing aesthetic professions, from installing holiday lights and landscaping lawns to giving manicures and facials, from designing brochures to crafting granite countertops.

Yet in an advanced economy, in which competition is pushing the prices of goods ever lower and their quality ever higher, enhancing the look and feel of people, places, and things will become more and more important over time. Just as surely as the horsepower of a car engine or the warmth of a blanket, the pleasure of twinkling Christmas lights offers real value.


TOPICS: Business/Economy; Culture/Society
KEYWORDS: christmas; decorations; reason; trade; virginiapostrel

1 posted on 12/19/2003 6:53:29 PM PST by RJCogburn
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To: RJCogburn
Nothing like flying into a city and seeing all the Christmas lights from the air.
2 posted on 12/19/2003 6:55:24 PM PST by farmfriend ( Isaiah 55:10,11)
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To: RJCogburn
Interesting article. Thanks.
3 posted on 12/19/2003 7:00:47 PM PST by stands2reason
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To: RJCogburn
"In other news, Democrats denounced Christmas lights, saying it's an excess of capitalism and greed. Also a senior Democrat official was quoted as saying the Bush administration is not doing enough to erect more Christmas lights in poor and inner-city communities."
4 posted on 12/19/2003 7:04:06 PM PST by BlkConserv
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To: RJCogburn
I am sure if there is another black-out right now it would be blamed on the christmas lights. But truthfully, its because they won't pass Bush's energy bill =o)
5 posted on 12/19/2003 7:09:27 PM PST by GeronL (Saddam is out of the hole and into the quagmire!)
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To: farmfriend; Jeff Head; maui_hawaii; swarthyguy; harpseal; Willie Green; Orion78; Paul Ross; ...
A totally different perspective. I couldn't care less about each individual's energy consumption choices. But since all of these lights are made in the PRC, consuming the materials enriches an enemy of America. And at some level, it's like giving kids drugs - get the Americans hooked so we use more power. Power which could be used by industries, particularly ones suffering from price erosion due to being undercut by the Chi Coms. See how this works? Warfare by other means. Sun Tzu wrote about it.

6 posted on 12/19/2003 7:09:45 PM PST by GOP_1900AD (Un-PC even to "Conservatives!" - Right makes right)
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To: belmont_mark
The Chinese are starting to buy SUVs. They want to be like us. The more wealth that country gets, the more like us they become.
7 posted on 12/19/2003 7:13:19 PM PST by farmfriend ( Isaiah 55:10,11)
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To: RJCogburn
The legion of watt wasters on my street have surpassed anything so pathetic as a humble manger scene in favor of Las Vegas South. I expect to see the Fuji blimp trailing a sleigh filled with Little Richard and his band to come plowing through the trees any night now.
8 posted on 12/19/2003 7:20:25 PM PST by gcruse (http://gcruse.typepad.com/)
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To: farmfriend
Unless the communist party is remove from power, there will never be any real freedom there. Economic freedom is not the same thing as political freedom(Lenin's NEP[New Economic Policy] proved that). And the more wealth that country gets with this type of leadership will spell war down the road with us where we take a decisive disadvantage as there military power, and more importantly their sphere of influence grows.
9 posted on 12/19/2003 7:22:50 PM PST by DarkWaters
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To: DarkWaters
Economic freedom is not the same thing as political freedom

No but the one will bring about the other. Politicians are all the same.

10 posted on 12/19/2003 7:26:35 PM PST by farmfriend ( Isaiah 55:10,11)
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To: farmfriend
Politicians are all the same.

Politician is one who practices politics. Poly is the Greek word for many and every country boy what tics are. Hence Many Tics.

Fits doesn't it?

11 posted on 12/19/2003 7:39:00 PM PST by SandRat (Duty, Honor, Country. What else needs to be said?)
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To: SandRat
Yes, cute.
12 posted on 12/19/2003 7:39:48 PM PST by farmfriend ( Isaiah 55:10,11)
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To: farmfriend
No, all politicians are not the same. However all totalitarians are. Just open the book ‘Red Dragon Rising’ to the middle to see the gory details. That paste was once human beings during the Tiananmen Square protests. The communists will not sacrifice their power for anyone. The Soviets allowed themselves to fall apart, China did not but could have if it did not stomp their foot down. China shows no signs of waning on this either, to do so would me death for the party. Enough said.
13 posted on 12/19/2003 7:44:06 PM PST by DarkWaters
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To: belmont_mark
The Chinese got a completly different take on the dissolution of the Soviet Union.

Opening up politically under anything else than the umbrella of the party is madness.

Capitalism must be harnessed to strategic goals and used in an offensive manner. Hence, another arrow in the PLA's quiver.

An expansionist mindset that transcends and uses any ideology of convenience and harkens back to the Russian expansion East, the American expansion West and the Lebensraum yearnings of Hitler.

Now the target may well be the Siberian minerals and land.


14 posted on 12/20/2003 2:30:19 PM PST by swarthyguy
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To: swarthyguy; HighRoadToChina; Jeff Head
Bump. How much money did the USA put into the PLA coffers this holiday season?
15 posted on 01/22/2004 1:34:42 PM PST by GOP_1900AD (Un-PC even to "Conservatives!" - Right makes right)
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To: RJCogburn
I fear for my future well being.
Being scrooge-like my initials are afterall BAH, and having never done any significant outdoor decorations, especially lighting, I recently was persueded that perhaps a few lights were in order.

I went to Walmart and behold, there were zillions of different combinations of stuff for sale and it was cheap!

I bit my tongue and bought a box of 450 lights for the Dogwood trees. Alas they didn't do the job so I bought a second box. They did the job pretty well, but some thought there were holes.

I fear that I will snap. I fear that I will jump off the deep end and become competitive. I live in Tennessee with TVA power, the cheapest in the land. It is easy, begin to buy lights a few at a time in early October, by Thanksgiving I could dole out money in small insignificant bits and develop a real light hord.

I can easily add lights to the gutters and the chimney. I can rig vertical strings from the top of the poplar.

I can be a contender.....

Summer will be a misery. Faced with the unending lies from the Democrats that are sure to dominate the news and suffering from the fear I will snap come Thanksgiving, life is going to be hard.

16 posted on 01/22/2004 1:50:21 PM PST by bert (Have you offended a liberal today?)
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