Gift

What is a Gift?

A gift or present is an item given without expectation of payment or return. It’s like sharing a slice of your pie with someone, not because you have to, but simply because you want them to enjoy it. Have you ever wondered why we give gifts? Is it just about making others happy, or does it serve a deeper purpose?

The Economics of Gift-Giving

Economists have studied the economics of gift-giving in the notion of a gift economy. This concept is fascinating because it shows how giving and receiving gifts can be as important to our social fabric as any monetary transaction. In many countries, gift-giving contributes to social relationships and cohesion. It’s like building a bridge between people with a simple act of kindness.

Gifts That Make Us Happier

Gifts can refer to items that make someone happier or less sad. Think about it: isn’t the joy in giving as much as the joy in receiving? When you give a gift, you’re not just passing an object; you’re sharing a piece of your heart and soul.

Common Gift-Giving Occasions

Gift-giving occasions may include expressions of love, gratitude, piety, solidarity, sharing wealth, and offsetting misfortune. Here are some common gift-giving occasions:

• Birthdays
• Potlatch (a traditional ceremony among indigenous peoples in the Pacific Northwest)
• Christmas
• The Feast of Saint Nicholas
• Easter
• Eid al-Fitr and Eid al-Adha (Islamic holidays)
• Hanukkah, Diwali, Pongal, Rakhi/Raksha Bandhan, Vesak, Kwanzaa (cultural celebrations)

Gifts for Special Occasions

A wedding (couple receives gifts, food, and drinks). A wedding anniversary (each spouse receives gifts). A funeral (visitors bring flowers; relatives give food and drinks). A birth (baby receives gifts or a push present from father to mother). Passing an examination (student receives gifts).

Passing Other Special Days

Passing Father’s Day. Passing Mother’s Day. Passing Siblings Day.

Promotional Gifts for Employees or Clients

Promotional gifts can be a great way to show appreciation and build relationships with employees or clients. These gifts are often given as tokens of gratitude, but they can also serve as marketing tools. Have you ever received a promotional gift that made your day?

Unwanted Gifts

Gifts can sometimes be unwanted due to a mismatch between giver and receiver preferences, causing deadweight loss. Gift givers often err on the side of selecting gifts that are too showy or expensive, while recipients prefer practical or experiential gifts over expensive ones. In some cases, gift givers pay more than recipients value the gifts.

Advance Coordination and Personalization

Advance coordination can reduce mismatches through wedding registries or Christmas lists. A study found that personalizing gifts leads to appreciation but also signals a closer relationship. Have you ever received a gift that was so personalized, it felt like the giver knew your thoughts better than you did?

The Cost of Unwanted Gifts

Estimated $3.4 billion spent on unwanted Christmas gifts in the United States in 2017. The day after Christmas is typically the busiest day for returns in countries with large Christmas gift-giving traditions. The total unredeemed value of gift cards purchased in the U.S. each year is estimated to be about a billion dollars.

The Non-Material Value of Gifts

Behavioral economists propose that the non-material value of gifts lies in strengthening relationships by signaling the giver was thoughtful, or spent time and effort on the gift. It’s not just about the item; it’s about the thought behind it.

The Legal Aspects of Gifts

At common law, for a gift to have legal effect, it required intent by the donor and delivery to the recipient. Certain types of gifts are subject to taxation, and in some contexts, gift giving can be construed as bribery.

Cross Border Monetary Gifts

Cross border monetary gifts are subject to taxation in both source and destination countries based on the treaty between the two countries. This adds an interesting layer of complexity to international gift-giving practices.

The Greatest Gift According to Christianity

Christianity considers the Incarnation and subsequent death of Jesus to be the greatest gift to humankind. In the Eastern Orthodox Church, bread and wine consecrated during the Divine Liturgy are referred to as ‘the Gifts.’ This shows how deeply ingrained the concept of gifts is in our religious practices.

Ritual Sacrifices: Return Gifts to a Deity

Ritual sacrifices can be seen as return gifts to a deity. This practice highlights the spiritual aspect of gift-giving, where giving back to something greater than ourselves is not just about material exchange but also about gratitude and respect.

In conclusion, gifts are more than just items; they’re a way of connecting with others. Whether it’s a simple token or a deeply personal gesture, the act of giving and receiving gifts strengthens our bonds and enriches our lives. So, next time you give or receive a gift, remember that it’s not just about the item but the love and thought behind it.