Romantics welcome Valentine’s Day and having the opportunity to lavish loved ones with attention. Economists appreciate Valentine’s Day, too. Sure, the $13 billion spent on Valentine’s Day is just a drop in the $17 trillion bucket of goods and services produced in the United States, but love is powerful and has value beyond the candy, flowers, cards, jewelry, meals, clothing, and other gifts purchased for the occasion.1 In Bloomberg View, one economist offered this insight,
“…We think there is a deeper and more consequential purpose to the study of love. Think about what love means to you. To us, it means caring about others and being cared for. Love is valuable, even if it is absent from both our national accounts and our political discourse.
In the language of economics, love is a form of insurance. It involves bonds of reciprocity that provide support when we’re feeling down, when we’re sick, and when times are tough.
…Mutually beneficial relationships make us all more resilient in times of crisis. This is why the household remains one of the most powerful institutions for organizing not just families but also our economic lives.”2
We hope this Valentine’s Day will find you well loved in the company of family and friends. If you find yourself wanting to lavish them with financial gifts, give us a call. We’re always happy to help!