16 March 2020

Think Green: The Economics of St. Patrick’s Day

Get out your green because it’s time to celebrate St. Patrick’s Day! Whether you’re Irish, know someone who is Irish, or want to be Irish on St. Patrick’s Day, the National Retail Federation (NRF) predicts that more than half of adults (56%) have plans to join the festivities and spend upwards of a record $6.16 billion this year, $5.61 billion in 2019.

The NRF calculates that each person will spend an average of $43. And based on the most recent US Census data, Massachusetts has one of the highest percentages of Irish American ancestry in the country, so we can rest assured there will be an economic bump in our state.

Many plan to honor the heritage by wearing green, with about 79% of revelers dressing in their emerald best, while others look forward to feasting their eyes on traditional food and beverage by either preparing a special dinner at home (28%) or dining out (27%).

In a more local economic forecast, let’s apply some of these numbers to Newburyport to see what they produce. If Newburyport has a total population of 18,060 people, and 27% of that population (4,876) plan to dine out with an average spend of $43 (which may be on the light side), local businesses could generate at least $210,000 off of the holiday, not to mention the additional sales tax generated for the state.

WalletHub’s most recent St. Patrick’s Day data also suggests that the holiday ranks among the top 3 drinking holidays, with it being the top beer drinking holiday. They even noted a whopping 13 million Guinness are to be consumed worldwide on St. Patrick’s Day alone. The average price of Guinness in Newburyport is $7.50, with some restaurants erring on the steep side and charging close to $9.00 per pint, while others are more responsible at $6.00 a pint.

A drinking holiday also gives independent Uber and Lyft drivers a huge opportunity to get a piece of the economic pie. According to Money magazine, the average Uber ride is $13.36 per trip and Lyft averages $12.53 for each ride. That’s nothing compared to the potential hundreds it costs for a DUI, so think twice before drinking and driving this holiday. Play it safe and spend the extra couple bucks.

So while the consumption of cabbage and corned beef skyrocket in this week leading up to the holiday, rivers are turned to green (not referring to the Merrimack), and everyone celebrates their inner Irish, I hope you enjoy good cheer, community, and tradition this St. Patrick’s Day. And as always, think green!

 

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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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