- Trump argues too many federal holidays cost the U.S. billions by reducing productivity.
- Research shows holidays can lower short-term output but improve long-term worker morale and performance.
- Holidays boost consumer spending, benefiting retail and small businesses despite concerns about lost workdays.
President Donald Trump has recently sparked controversy by calling for a reduction in the number of federal holidays in the United States. Specifically, he singled out newer holidays like Juneteenth—which commemorates the end of slavery—as well as other established days off, suggesting they place an unnecessary burden on the economy. On Juneteenth itself, Trump blasted what he sees as an overabundance of national holidays, arguing that these frequent days off cost America billions in lost productivity. “Too many non-working holidays in America,” he said, warning that if the trend continues, the country could end up with a holiday for nearly every working day of the year. “It must change if we are going to, MAKE AMERICA GREAT AGAIN!”
The statement touched a nerve, with many asking: Is Trump’s argument valid? Do federal holidays really weigh down the economy, or is the reality more complex? Let’s explore the economic and social effects of America’s national holidays and what experts say about this hot-button topic.
The Economic Impact of Federal Holidays: More Nuanced Than You Think
At first glance, Trump’s logic seems simple: fewer holidays mean more working days, which should lead to increased productivity and economic output. And there is some truth to this in the short term. When workers take a day off, their productivity for that day obviously drops to zero. But economists point out that the real picture is more complicated.
Productivity often dips not only on the holiday itself but also in the days surrounding it. Many employees use holidays as an opportunity to schedule extended vacations, leaving coworkers who don’t take extra time off to manage heavier workloads. This imbalance can slow down overall output more than a single holiday might suggest.
A 2022 study by two economists looked at how the timing of holidays affects economic output. When a holiday falls on a weekend and is not moved to a weekday, the nation’s gross domestic product (GDP) actually increases by about 0.08% to 0.2% compared to when the holiday is observed on a weekday. The manufacturing sector, however, faces more significant challenges, often feeling the greatest impact from days off.
Long-Term Benefits of Paid Time Off: More Than Just Rest
Though the immediate effect of holidays might seem like lost work and money, there’s growing evidence that time off benefits the economy in less obvious but critical ways. Paid holidays help improve employee morale and reduce burnout, which in turn boosts long-term productivity.
Working longer hours doesn’t always mean better results. In fact, pushing workers to their limits can lead to exhaustion and declining efficiency. Microsoft’s recent research supports this, showing that many employees struggle with what they call the “infinite workday,” where work demands stretch far beyond traditional hours, leading to stress and fatigue. In a survey of over 31,000 employees globally, one-third said they found it impossible to keep up with their workload over the past five years.
Additionally, a study by Ernst & Young found that employees who took just 10 extra hours of vacation improved their job performance by 8%. Those who regularly took time off were also less likely to quit, highlighting how crucial rest is for retention and overall workplace health.
The Holiday Spending Boost: A Lift for Many Businesses
Contrary to Trump’s assertion that holidays close businesses and drain money, many sectors stay active during federal holidays. Emergency workers, retail staff, and transportation employees often continue working, keeping parts of the economy running smoothly.
Moreover, holidays tend to stimulate consumer spending. Retailers and tourism industries frequently plan sales and events around these days, drawing in customers and boosting revenue. Even small businesses see a positive impact. For example, a 2018 study in the UK showed that bank holidays gave small shops an average profit increase of $340.
The Public Reaction: Divided Opinions Across the Nation
Trump’s comments ignited a heated debate among Americans. Supporters agree that reducing holidays could improve economic growth and productivity. “We should work smarter, not just take more days off,” said one proponent, reflecting a desire to tighten work schedules.
On the flip side, critics argue that holidays, especially those like Juneteenth, carry significant cultural and emotional weight. They warn that dismissing these days as economic liabilities overlooks their importance for mental health and social connection. Labor unions and worker advocates emphasize that holidays give workers necessary breaks and time to recharge, which are vital in today’s fast-paced work environment.
Workers themselves express mixed feelings. Some find the clustering of holidays disrupts workflow and leads to stressful backlogs. Others insist these breaks are lifesavers in balancing heavy workloads and personal lives.
Looking Ahead: Balancing Productivity and Wellbeing
This discussion about cutting federal holidays reflects a larger national conversation about work culture. While boosting productivity is essential, so is protecting workers from burnout. The challenge lies in finding a balance that respects economic needs without sacrificing employee health.
Instead of slashing holidays, some companies are exploring innovative approaches such as shorter workweeks, flexible schedules, and enhanced paid leave. These strategies aim to maintain output while supporting worker wellbeing.
America’s approach to holidays will likely continue evolving. For now, Trump’s call to reduce federal holidays has sparked a crucial debate. What remains clear is that Americans value their time—both working and resting—and how the country manages this balance will shape its future economic and social health.
