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Saturday, September 1, 2007

Reading List: One Perfect Day

Mead, Rebecca. One Perfect Day. New York: Penguin Press, 2007. ISBN 1-59420-088-2.
This book does for for the wedding industry what Jessica Mitford's The American Way of Death did for that equally emotion-exploiting industry which preys upon the other end of adult life. According to the American Wedding Study, published annually by the Condé Nast Bridal Group, the average cost of a wedding in the United States in 2006 was US$27,852. Now, as the author points out on p. 25, this number, without any doubt, is overstated—it is compiled by the publisher of three bridal magazines which has every incentive to show the market they reach to be as large as possible, and is based upon a survey of those already in contact in one way or another with the wedding industry; those who skip all of the theatrics and expense and simply go to City Hall or have a quiet ceremony with close family at home or at the local church are “off the radar” in a survey of this kind and would, if included, bring down the average cost. Still, it's the only figure available, and it is representative of what the wedding industry manages to extract from those who engage (if I may use the word) with it.

To folks who have a sense of the time value of money, this is a stunning figure. The average age at which Americans marry has been increasing for decades and now stands at around 26 years for women and 27 years for men. So let's take US$27,000 and, instead of blowing it out on a wedding, assume the couple uses it to open an investment account at age 27, and that they simply leave the money in the account to compound, depositing nothing more until they retire at age 65. If the account has a compounded rate of return of 10% per annum (which is comparable to the long-term return of the U.S. stock market as a whole), then at age 65, that US$27,000 will have grown to just a bit over a million dollars—a pretty nice retirement nest egg as the couple embarks upon their next big change of life, especially since government Ponzi scheme retirement programs are likely to have collapsed by then. (The OpenOffice spreadsheet I used to make this calculation is available for downloading. It also allows you to forecast the alternative of opting for an inexpensive education and depositing the US$19,000 average student loan burden into an account at age 21—that ends up yielding more than 1.2 million at age 65. The idea for this analysis came from Richard Russell's “Rich Man, Poor Man”, which is the single most lucid and important document on lifetime financial planning I have ever read.) The computation assumes the wedding costs are paid in cash by the couple and/or their families. If they're funded by debt, the financial consequences are even more dire, as the couple finds itself servicing a debt in the very years where saving for retirement has the largest ultimate payoff. Ever helpful, in this book we find the Bank of America marketing home equity loans to finance wedding blow-outs.

So how do you manage to spend twenty-seven thousand bucks on a one day party? Well, as the author documents, writing with a wry sense of irony which never descends into snarkiness, the resourceful wedding business makes it downright easy, and is continually inventing new ways to extract even more money from their customers. We learn the ways of the wedding planner, the bridal shop operator, the wedding media, resorts, photographers and videographers, à la carte “multi-faith” ministers, drive-through Las Vegas wedding chapels, and the bridal apparel industry, including a fascinating look inside one of the Chinese factories where “the product” is made. (Most Chinese factory workers are paid on a piecework basis. So how do you pay the person who removes the pins after lace has been sewed in place? By the weight of pins removed—US$2 per kilogram.)

With a majority of U.S. couples who marry already living together, some having one or more children attending the wedding, the ceremony and celebration, which once marked a major rite of passage and change in status within the community now means…precisely what? Well, not to worry, because the wedding industry has any number of “traditions” for sale to fill the void. The author tracks down the origins of a number of them: the expensive diamond engagement ring (invented by the N. W. Ayer advertising agency in the 1930s for their client, De Beers), the Unity Candle ceremony (apparently owing its popularity to a television soap opera in the 1970s), and the “Apache Indian Prayer”, a favourite of the culturally eclectic, which was actually penned by a Hollywood screenwriter for the 1950 film Broken Arrow.

The bottom line (and this book is very much about that) is that in the eyes of the wedding industry, and in the words of Condé Nast executive Peter K. Hunsinger, the bride is not so much a princess preparing for a magic day and embarking upon the lifetime adventure of matrimony, but (p. 31) “kind of the ultimate consumer, the drunken sailor. Everyone is trying to get to her.” There is an index, but no source citations; you'll have to find the background information on your own.

Posted at September 1, 2007 23:27