Episode Overview
Podcast: Squawk Pod
Episode: Holiday Gratitude & Happiness with Arthur Brooks
Date: December 26, 2025
Main Theme:
The day after Christmas edition focuses on the intersection of economics, happiness, consumer spending, and gratitude. Anchors dive into how people are feeling at the end of the year and bring on Harvard Professor Arthur Brooks to share evidence-based insights on what truly drives happiness, especially around the holidays and in times of economic pressure.
Key Discussion Points & Insights
1. Post-Holiday News and Consumer Sentiment
Hosts: Steve Liesman, Leslie Picker, Contessa Brewer
- Mood of Post-Holiday News: The anchors reflect on the generally negative tone of news, with Steve Liesman humorously suggesting, “The news is negative because the guys who write it are mad about having to come in.” (01:11)
- Powerball Jackpot: There’s banter about a $1.8 billion Powerball winner in Arkansas, sparking discussion about hope and the psychology of lotteries. Steve quips, “The lottery is a tax on people who are bad at math.” (02:00)
- Holiday Travel & Weather: Hosts detail holiday travel disruptions due to inclement weather across the US, affecting thousands of flights and cities hit by storms.
2. Holiday Shopping & Retail Trends
Guest: Michael Zakor, Retail Expert (Five New Digital Founder, author of “The New Retail”)
- Compressed Shopping Season: This year’s calendar left only 27 days between Thanksgiving and Christmas. Zakor notes, “Consumers proved to be incredibly resilient even in a shortened season… value retailers have done very well.” (10:45)
- Winners & Losers:
- Electronics emerged as the big winner (“Electronics were the clear winner… gaming consoles, new phones, new laptops.” 11:35)
- Apparel: There was a surge in demand for casualwear—pajamas, cargo pants, graphic tees—reflecting ongoing ‘comfort’ trends.
- Luxury Bifurcation: The “K-shaped economy” persists: the top 20% account for 80% of consumer spending. Ultra-luxury is strong, but aspirational buyers have withdrawn. “It’s harder to justify. I saved up for a $3,500 purse that this season is $6,500 and you didn’t improve the value.” (13:00)
- Outlook for 2026: Zakor predicts a “holiday hangover” with increased credit card and buy-now-pay-later bills coming due, but expects continuing strength among value retailers, especially with lingering inflation.
- Tariffs’ Impact: Christmas goods are nearly all imported, mostly from China. “Roughly 98% of all Christmas holiday decorations are made in China. So the China tariffs were going to have an effect.” (17:54) Inventory overstock earlier in the year buffered higher prices, but expect more expensive decorations next season.
3. The Science of Happiness & Money with Arthur Brooks
Interviewers: Becky Quick, Andrew Ross Sorkin
Guest: Arthur Brooks (Harvard Professor, columnist at The Atlantic, host of Office Hours podcast)
Can Money Buy Happiness?
- Eliminating Unhappiness vs. Creating Happiness: “The government can't bring you happiness. It can't. What it can do is eliminate sources of unhappiness…and what consumers are worried about this holiday season is inflation.” (21:10)
- Inflation’s Impact: Brooks calls inflation “a tax. It's a tyranny. It's bad policy, and everybody knows it. So when politicians say it's not that bad, it just enrages people.” (21:33)
The Five Evidence-Based Ways to Use Money for Happiness
Arthur Brooks shares his “formula” for maximizing happiness with your resources:
-
Buy Experiences with People You Love
- “That’s why a vacation with people you love… is really, really great and meaningful and wonderful.” (23:24)
-
Buy Time
- Outsourcing chores gives you time for what matters most, but “don’t waste the time that you’re buying. Be super purposive about it.” (23:42)
-
Give Money Away—To What You Love
- “Number three is giving your money away, but you have to give it to things that you love.” (24:28)
- Example: Brooks and his wife tithe, mostly to Catholic education, and discuss the value of “turning the whole dial on one person” versus minimal donations to many.
-
Saving
- “Saving money brings enormous satisfaction because you don’t have to worry about things. It puts off the fear, the panic… Consumer debt is idiocy for happiness. You should never run a credit card balance if you can possibly avoid it.” (28:01)
- Only mortgages—and saving for generational wealth—are exceptions.
-
Not Explicitly Stated, but Implied: Community & Love
- Brooks emphasizes collaborating with friends in charitable giving, focusing on meaningful relationships and investments in people.
Memorable Story: Adoption as Ultimate Giving
Brooks shares that his wife’s suggestion to “do something big for one person” led them to adopt a child from China. “It was the most amazing experience in your life. Game changer.” (27:42)
Best Christmas Gifts?
Brooks recommends gifting experiences over stuff. He shares how each year he’d take each child on a special, one-on-one experience, “That was a Christmas gift. Strong recommend because that's number two: Experiences with people you love.” (29:36)
Notable Quotes & Memorable Moments
-
On News After the Holidays:
“Can we go back and rewrite that stuff and say somebody helped somebody else and somebody did a good deed... or something, somebody smiled.”
—Steve Liesman (02:16) -
On the Psychology of the Lottery:
“Lottery is a tax on people who are bad at math.”
—Steve Liesman (02:00) -
On Inflation and Unhappiness:
“The government can't bring you happiness. It can't. What it can do is eliminate sources of unhappiness.”
—Arthur Brooks (21:10) -
On Luxury Consumption:
“I think a lot of aspirational luxury buyers have dropped out of the market... harder to justify. I saved up for a $3,500 purse that this season is $6,500 and you didn't improve the value.”
—Michael Zakor (13:00; highlighted twice in the episode for emphasis) -
On How to "Spend" for Happiness:
“Your impulses tell you to do the one thing that won't buy happiness, which is getting stuff… We adapt. That's what we do to stuff. But there's four other things that you can do, and they all buy happiness.”
—Arthur Brooks (22:41) -
On Philanthropy:
“What gives more satisfaction? Throwing dollars out of a helicopter, you know, $100 here, $100 there, or turn the whole dial on one person.”
—Arthur Brooks (26:44) -
On Parenting through Experiences:
“I would go alone away with each one of my kids every year when they were little. Strong recommend...”
—Arthur Brooks (28:54)
Important Timestamps
- 01:11 – Steve Liesman on the negative tone of post-holiday news
- 02:00 – Powerball jackpot, “tax on people who are bad at math”
- 10:45-18:25 – Michael Zakor on holiday retail trends, K-shaped economy, and tariffs
- 21:10 – Arthur Brooks: “Government can’t bring you happiness…”
- 22:41-24:28 – Brooks breaks down what “buys” happiness (experiences, buying time, giving, saving)
- 27:35 – Brooks’ story about adopting a daughter from China as turning the “whole dial” for someone
- 28:54 – Brooks’ advice: gift experiences, especially with your children
Episode Takeaways
- Inflation and affordability are top of mind for consumers, causing concern that overshadows even holiday cheer.
- Experiential and value-focused spending dominated the 2025 holiday season; luxury spending is up only at the extreme high end.
- The path to happiness is proven but counterintuitive: Stop chasing more stuff, and focus on time, experiences, meaningful giving, purposeful saving, and nurturing relationships.
- “Turning the whole dial on one person”—making a profound difference for someone—delivers the deepest fulfillment.
Closing Tone
In the spirit of year-end reflection and gratitude, the episode encourages listeners to reconsider how they define value and happiness, especially as they look toward a new year. The tone remains hopeful, practical, and sometimes wry, with plenty of relatable banter and evidence-backed wisdom.
For more in-depth discussion, refer to key segments:
- Michael Zakor on Retail & K-shaped Economy (10:45–18:25)
- Arthur Brooks on Money, Happiness, and Giving (20:35–29:46)
Happy holidays from the Squawk Pod team!