Economics is frequently called "the dismal science." While many observers would agree with "dismal," some practitioners, particularly in the "hard sciences" such as physics and chemistry, question whether economics should be elevated to the status of "science." My reaction to this controversy has always been, "who cares?"

Economics is interesting to some of us because of its major role in public policy and its effect on peoples' lives. That's sufficient to make it worthy of attention. And while we economists are said to be a boring lot, we're not immune to a bit of mirth during this holiday season.

Take for example that most mundane tool of economic analysis, price indices. Not content with the consumer price index, the producer price index, and other common indices, the private firm of PNC Wealth Management has composed and tracks the Christmas Price Index, composed of the 12 categories and 364 items in "The Twelve Days of Christmas."

The prices of the 364 items that "my true love gave to me" have increased by 4 percent in 2007 over 2006. Here are some examples. Prices of many of the birds have remained flat. The price of the partridge remained unchanged, although the accompanying pear tree has increased by a significant 15.4 percent, presumably because demand for pear trees has increased relative to the supply. Also remaining unchanged was price of the two turtle doves, the three French hens and the seven swans-a-swimming that can be purchased for the same price as in 2006. Exceptions to flat prices in the feathered category include a whopping 25 percent price increase for the four calling birds. The economists attribute this to increased demand along with higher shipping costs. Higher prices for the six geese-a-laying are consistent with rising food prices, exceeding them with a 20 percent price increase. As might be expected, the price of the five golden rings has increased dramatically due to the high price of gold. Gold prices tend to vary inversely with value of the dollar relative to other world currencies. As the U.S. dollar has taken a beating in the world economy, the rising price of gold has resulted in a 21.5 percent increase in price of the five golden rings. The remaining items of the 12 days of Christmas are human services. The most dramatic increase is the price paid for labor of the eight maids-a-milking. Congress has at long last increased the minimum wage. Consequently, the long suffering eight maids-a-milking enjoyed a long overdue 13.6 percent increase in remuneration. For music and dance, only the super-talented can earn a living in those professions that are such a labor of love. But happily, the 12 drummers drumming and the 11 pipers piping enjoyed a 4.2 percent increase in their compensation. Even the 10 lords-a-leaping received a 3 percent increase in their wage. To this scribbler, the role of the 10 lords-a-leaping always has been opaque. Perhaps it is akin to the court jester of yore. But the economists at PNC neither specify how compensation to the 10 lords-a-leaping was determined, nor why it was merited. Only the nine ladies dancing failed to see an increase in their wage -- this according to Philadance, a Philadelphia modern dance company. Perhaps the talented dancers need a more effective union. It certainly seems that the case for the nine ladies dancing would be at least as meritorious as that of the 10 lords-a-leaping who presumably could use their time for something less frivolous and more constructive. But then, as lords have an exalted place in society, they probably feel they can use their time any way they please. But do they deserve a pay increase while the dancers, presumably more talented and undergoing more rigorous training, get no increase whatsoever? The failure of the dancers to increase their wage, and the flat prices for the partridge, the two turtle doves, the three French hens, and the seven swans-a-swimming combined to offset the dramatic price jumps of the four calling birds, the six geese-a-laying, and the high price of gold to hold the price increase for the 364 items to a modest four percent over 2006 -- this compared to a rise in the more familiar consumer price index of about 3.5 percent.

No price index, however carefully constructed, is expected to perfectly reflect prices faced by a single consumer. This truth is easily seen in the Christmas price index. Few of us ever will purchase seven-swans-a swimming or, heaven forbid, hire 10 lords-a-leaping. And even the more practical food product, the Christmas goose, is a rarity, generally replaced by the more favored turkey or ham. And should we plant a pear tree, it would be only an occasional purchase, and even then, except in the most exceptional occasion, minus the accompanying partridge.

Nevertheless, price indices reflect broad trends, even the esoteric Christmas price index not being far off from the familiar consumer price index. Of course the other major determinant of consumer economic welfare is incomes. The median income of Americans, adjusted for price increases, has remained flat for more than a decade. The fruits of our economic expansion have accrued almost exclusively to a fraction of the top 1 percent of American income recipients. That is not how American capitalism is supposed to work. And it represents a colossal failure of our political system as well.

But these are topics for another day. We in this region have much to be thankful for, especially for the many people in local government, members of volunteer and service organizations, and people in both private and public life who devote so much effort to making Green County and this region the great place that it is.

I see better days ahead, and with that wish all our readers a Merry Christmas, with special thanks to so many readers who have encouraged the scribbling in this column.

-- John J. Waelti is a native of Monroe Township. He is former Professor of Applied Economics, University of Minnesota; and Professor Emeritus, New Mexico State University. He can be reached at jjwaelti@tds.net.