In this piece, we will take a look at the 12 most important holidays in the U.S. If you want to skip our analysis of the economic impact of holidays, then take a look at 5 Most Important Holidays in the US.
Everyone loves holidays, and even though most people might think that days when the stock market is closed lead to lower output and lost productivity, they also contribute to economic output if the conditions are right. However, it is impossible to definitively state whether a holiday either leads only to lost economic output or an uptick in spending. This is because when workers take a day off, then naturally their economic output is lost, but at the same time, if they choose to spend their discretionary income during this period, then there is also a gain in economic output.
So naturally, this requires some detailed research to see which one of these is true. A brief look at the days that are designated as official holidays in the U.S. and the cultural trends associated with them shows that both might be true. Americans like to relax during the fourth quarter of the year and spend time with friends and family during the Thanksgiving season and the end of year Christmas holidays. Both of these see family members travel some distance to meet up with their loved ones, and also massively spend on gifts for the Christmas holiday. These are economic trends that have their monetary value, and often see massive annual holiday sales at every major retailer with high inventory levels.
In fact, one of the biggest companies in the world and in America, the Seattle Washington based online retailer Amazon.com, Inc. (NASDAQ:AMZN), sees one of its biggest spending events in the holiday season. Amazon’s holiday season is a highly anticipated event – by both company management and its customers. This is because of the management, it provides the perfect time to sell as many products as possible and drive revenue growth, while for customers, it provides an opportunity to make large purchases to save money through discounts.
Taking a look at the spending trends for Amazon’s holiday season, this data is particularly crucial given the current U.S. economic climate. This is because recent trends in the American economy are rather historic in nature and part of an unending series of crises that have been occurring since the outbreak of the coronavirus pandemic in 2019. One of the major drivers of inflation, particularly when it comes to sustaining the higher price growth for a longer time period has been savings. Americans were awarded stimulus checks to keep them afloat during the pandemic furloughs, and a near total shutdown of the travel and hospitality sector during the pandemic also meant that most of the things that people typically spent their discretionary income were unavailable.
However, driving up inflation despite the Federal Reserve’s valiant efforts to curtail it is no easy task, and one that especially cannot be achieved by more ‘modest’ amounts of money, like a billion dollars for instance. So, how much money does it take to really ‘fight the Fed’ and make sure that prices continue to rise even as the economy is battered by high interest rates? Well, research from the San Francisco Fed shows that between 2020 and 2021, the U.S. government injected $5 trillion into the economy to keep it afloat in an unprecedented era of nationwide shutdowns. This led to an annual fiscal spending growth of roughly 35%, which was more than twice the growth rate of 2008. In dollar terms, this translated into excess savings of a whopping $2.1 trillion in the economy, which were slowly drawn down later as inflation soared. By March 2023, these savings had dropped down to $500 billion, which indicated that the year might end before all this money was spent and people could return to their regular spending habits to finally bring down inflation.
The $500 billion in excess savings by March had dropped down to at least $190 billion by mid August 2023, indicating that as the job market became tougher to navigate, people relied more on the money that had saved up to stay afloat. These consumer dynamics are important when we analyze sales figures for the U.S. holiday season and Amazon’s Prime Day which takes place before the turkey is sliced. The more excess money consumers have, the more they can splurge and ensure that the economy continues to tick and avoid a recession for at least most of the time duration of the current high interest rate cycle.
2022 was a bumper year for Amazon and the broader U.S. retail spending since not only did consumers have ample amounts of money to spend but inflation also led to higher prices and by effect, higher revenue. Amazon’s data shows that the small businesses that operate on its platform generated more than $1 billion in sales during the 2022 holiday shopping weekend in the U.S. And, the total amount of dollars spent during the 2022 holiday season in the U.S. is greater than the economies of some of the largest countries in the world. According to data from Adobe Analytics, during the two months that ended on December 31, shoppers spent more than $3 billion daily for more than a month or 38 days, and on average, daily spending during the holiday season stood at more than $1 billion. Cumulatively, a whopping $211 billion was spent, with electronic commerce benefiting from its newfound post pandemic popularity and setting new spending records. For the Black Friday and Cyber Monday holidays, the spending stood at $35.3 billion for a 4% annual growth.
Adobe Analytics also estimates that the 2023 holiday season in the U.S. will beat last year’s record. Its forecast, shared at the start of October highlights that online holiday sales can touch an unbelievable $221.8 billion in 2023 for a 4.8% growth. With the holiday season at our doorstep, we decided to take a look at the most important holidays in the U.S., so head on below to find out more!
Our Methodology
To compile our list of the most important holidays in the U.S., we made a list of all holidays on which the NASDAQ, the NYSE, or the bond markets are closed in the U.S. The holidays are ranked in chronological order, with the lower ranking holidays occurring later during the year.
12 Most Important Holidays in the US
12. Christmas Day
Christmas is the signature holiday of countries that have had a Christian majority population since their establishment. The U.S., like most of the Western world, sets Christmas as a holiday regardless, and the festivities are part of a week of celebrations that start at the end of December and stretch into the first week of January as part of the New Year holiday. Christmas holidays are marked by the traditional Christmas fir tree, Santa Claus in shopping malls and family gatherings, and gift giving all around.
11. Thanksgiving
Thanksgiving is another U.S. holiday that has a religious background. It has a central place in the Christian faith and history, and the holiday also traces its roots to the British monarchy. Thanksgiving is essentially a single holiday that marks a collection of dozens of Church holidays in England during the 16th century. The holiday started when the Church of England broke away from the Roman Catholic Church and replaced the nearly 100 holidays throughout the year when Christians in England had to attend church. In the U.S. the Thanksgiving weekend also marks the Black Friday holiday where retailers sell items at steep discounts to help people with their purchases for the holiday season.
10. Veterans Day
Veterans Day is a national holiday that is celebrated only in the U.S. It is also one of the youngest holidays on our list, and is less than a hundred years old. Veterans Day was declared a holiday by the American Congress through a Congressional Act passed in 1938 that made November 11th a day to be dedicated to service members of the United States armed forces, and it initially honored American service members who had served during the first major world war in human history, World War 1.
9. Columbus Day
Columbus Day, as the title suggests, marks the celebration of the explorer Christopher Columbus who landed in the Bahamas and went on to discover the New World that would become the dominant economic and political power in the world a couple of centuries later. It is celebrated both in the U.S. and in other countries part of the Americas. Along with Veterans Day, it is only marked as a holiday in the bond market.
8. Labor Day
Labor has been essential to America’s rise as the world’s dominant economy, and Labor Day celebrates the work put in by thousands of laborers in their jobs. It is typically celebrated during the first week of September.
7. Independence Day
Independence Day, or the Fourth of July, is the day of independence of the United States of America. The U.S. is a rare example of a former British colony that took up arms to gain freedom from its conquerors. At that time, Britain was the world’s U.S., meaning it had the most formidable and well trained military. However, shrewd decisions and lady luck helped a ragtag group of American rebels to expel the British and sign the Declaration of Independence.
6. Juneteenth National Independence Day
The Juneteenth National Independence Day marks the day of celebrations all over America after the defeat of slavery during the brutal Civil War of the 1860s. On this day, the final enforcement of President Lincoln’s Emancipation Proclamation that freed slaves took place, and the holiday is typically celebrated on June 19th.
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Disclosure: None. 12 Most Important Holidays in the US is originally published on Insider Monkey.