There is no doubt that there are more gifts being given during the holidays than any other part of the year. But is all the present-giving and joyful times of Christmas harming the economy?

Modern day traditions like Black Friday, and more so now than ever Cyber Monday, seem like a clever marketing ploy with their ‘never before seen’ sales, driving people to quickly finish up their Thanksgiving dinner and rush to the stores so they can fight over a 50% off sweater at Target. Now, the question is: Are all these traditions that have been around for as long as we can remember doomed to crash Christmas?

Christmas, and other holiday shopping, is actually crucial to many companies, making almost 25% of yearly sales and 60% of profits. Well, what’s wrong with this? Deadweight loss. This is a loss of economic efficiency when a good or product does not reach its full potential. Almost all of these gifts were guessed by the gift-giver, and can sometimes be unwanted by the gift-receiver. Every year, ties and sweaters go unworn, books not read, and vases unused. Many of these unwanted gifts were sold, regifted, returned, or thrown away. This is the fate for almost one third of gifts bought during the holiday season and also leads to a lot of money being lost.

However, there is a solution to this problem. The most economic-efficient gift is plain money. This can let the recipient choose exactly what he or she wants, eliminating the risk of receiving something unwanted. Although the traditional and sentimental value of giving gifts will be lost by replacing it with cash, it will make the economy a better place and keep the kids happy.