Days Off Tax Living Standards

Can't seem to get my mind off of you
Back here at home with nothing to do
--Go-Go's

As we leave the Labor Day holiday in the rear view mirror, it seems fitting to ponder the pros and cons of idle time. Most people believe that vacation days, i.e., days off from work, improve their living standards. This belief stems from the axiom that people prefer leisure over work. And to be sure, taking a breather from work can provide welcome rest that recharges the batteries.

At the same time, however, days off necessarily mean days of no production. No production means no economic resources have been generated. Scarcity has not been reduced. In fact, scarcity increases during rest because resources previously produced are consumed.

Stated differently, production is required to boost living standards. In the long run, days of no work, particularly when joined together in large blocks of time, do not improve living standards. Idle time weighs against standard of living.