Higher prices result in more people getting more rooms than if prices were static.
Was the Bethlehem Innkeeper Greedy?
The Grinch Who Stole the First Christmas
By: George Noga – December 4, 2022
This year’s Christmas posting is about the innkeeper in whose manger Jesus was born. Last year (posting dated 12/5/21) was about Ebeneezer Scrooge; in 2020 (12/13/20) it was about Christmas Eve 1941 following Pearl Harbor. In 2019 (12/15/19) we featured America’s greatest Christmas story; in 2018 it was lessons from Christmas shopping (12/16/18). All these are on our website: www.mllg.us and worth a read. Note: The genesis for this post was an article forwarded by a reader, but the words are our own.
The story of the birth of Jesus lies at the heart of Christmas. One prevalent narrative is that Jesus was born in a manger because the innkeeper raised prices due to the surge of visitors for the census. The innkeeper often is portrayed as a greedy, and even evil, capitalist. But was the innkeeper truly greedy? The following is from Luke 2-7.
“Caesar Augustus decreed a census be taken and everyone go to their town
to register. . . So, Joseph and Mary, who was with child, went to Bethlehem.
While there, Mary gave birth in a manger as there was no room at the inn.”
The Grinch Who Stole the First Christmas
The Roman government forced people to travel long distances at their own expense and at great risk to register for the census – for the purpose of taxation. Caesar knew there would be great danger and hardship but was oblivious. Conducting a census, even 2,022 years ago, could have been accomplished with much less human misery.
Why was it necessary to require travel? Why couldn’t people register where they lived? The Romans had a vaunted postal system that could have facilitated the census without hardship. Clearly, this was an egregious abuse of power. The hubris of government was responsible for Jesus being born in a manger instead of in his own home. It is incandescently clear that the grinch who stole the first Christmas was government.
Was the Innkeeper Greedy or Benevolent?
If the innkeeper raised prices due to the surge of travelers registering for the census, would that have been greedy or even evil? This situation is no different than the price of hotel rooms during a hurricane or a big football game. Prices convey valuable economic information. By adjusting prices when demand surges, consumers benefit.
Higher prices incentivize travelers to stay with friends or relatives or to lodge farther away where prices are lower. Some families that otherwise might have taken two rooms may decide to make do with one room. Some people may decide to stay for fewer nights. Higher prices would sharply increase the supply of rooms as many local residents may decide to rent out rooms in their home, or even their entire home.
The price mechanism assures more people will get more rooms than if prices remained static. Scarce hotel (or inn) rooms are allocated in the most economically efficient manner. Those who value rooms the most get them. Far from being evil, higher prices enable the market to allocate scarce resources to the benefit of all consumers.
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The narrative of a greedy innkeeper is frequently the topic of Christmas sermons and school plays. It is economic ignorance and anti-capitalist drivel. The grinch who stole the first Christmas was government – and nothing has changed in 2,022 years.
BEST WISHES TO ALL OUR READERS FOR A MERRY CHRISTMAS AND FOR A NEW YEAR WITH MORE LIBERTY AND LESS GOVERNMENT!
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More Liberty Less Government – mllg@cfl.rr.com – www.mllg.us
