25 November 2019

Carving out the Economics of Thanksgiving

Thanksgiving officially kicks off the start to a holiday season filled with family, friends…and travel! Whether by plane, train or automobile, AAA predicts a record number of people on the road and in the sky this Thanksgiving with over 55 million expected to trek 50 miles or more.

How does this compare to years past? This year marks the second-highest travel season since 2005 and is up 2.8% from last year, according to AAA. While gas prices seem to hover around the same price as last year at $2.57 a gallon, many are road-trip-ready and will be hitting the streets, with standard peak travel times occurring during rush hour this Wednesday. The Thanksgiving holiday travel period is defined as Wednesday, Nov. 27 to Sunday, Dec. 1.

What’s really interesting about this year’s travel itinerary is the number of travelers flying the friendly skies. AAA estimates 4.45 million are expected to take a flight to their Thanksgiving destination, up 4.6% from last year. Hopefully, you weren’t the recipient of Frontier Airlines’ snafu last Thursday when they sent out an email to travelers relaying thousands of canceled flights! While Frontier published a statement hours later that the email was sent in error, it caused quite the stir as travelers prepare for their big trips.

When travelers reach their final destination, hosts of the Thanksgiving feast have been planning and preparing for days in advance. Surprisingly, the American Farm Bureau Federation’s annual survey reflects only a $0.01 increase from last year’s average of $48.90 for a 10-person classic Thanksgiving dinner spread. And the cost of the main dish has gone down as well. Farm Bureau reports a 4% decrease for the cost of a 16-pound turkey, coming in at $20.80.

In the midst of feasting and lively conversation, some may enjoy the traditions of game day, or even GO to the game! The City of Detroit has been hosting a Thanksgiving Day NFL game every year since 1934, with Dallas getting on board in 1966. Others are eager to head to NYC to be front and center for the annual Macy’s Day Parade, prancing up and down the streets of NYC since 1924 (originally making its grand entrance as a Christmas Day parade).

All of these traditions and economic increases wouldn’t have been possible if it weren’t for the tenacity of Sarah Josepha Hale. It took Hale 36 years of campaigning to convince Abraham Lincoln to recognize Thanksgiving as a national holiday in 1863. Not only is Hale regarded for this milestone, but she may be better known for writing the infamous nursery rhyme “Mary Had a Little Lamb.” The first year pilgrims gathered for a three-day feast was in 1621, 398 years ago.

As we prepare to take to the skies or pack the car for a road trip, it’s important to remember the true meaning of Thanksgiving. While we take the time to travel to greet friends and family, consider putting your phone away, taking the time to ask questions of your elders, caring for those in need, and being grateful and giving thanks for what you have in your life. Wishing you and yours a very Happy Thanksgiving.

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About Stu: With more than 30 years of experience as a tax professional, Stu Steinberg brings a broad depth of knowledge to his work with his clients. Stu founded Erock Tax to help provide tax and financial planning strategies to individuals, families and small businesses and is passionate about empowering his clients through education about their money health. Stu is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.  

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