Don’t Leap for Joy on February 29!

Newswise — Americans who are paid an annual salary are putting in one free day of work this year — a median income loss to workers of about $205, says Jason Taylor, an assistant professor of economics at Central Michigan University.

From an economic perspective, the key day is not Feb. 29, which falls on Saturday, but rather Dec. 31, said Taylor.

“Were it not for leap day, the year would have ended on Thursday—now it will end on Friday, so we have added one ‘business day’ to our calendar,” said Taylor. “That said, those Americans who are paid an annual salary are putting in one free day of work this year thanks to the fact that the Earth revolves around the sun in just less than 365.25 days. Since the median daily income is around $205, this is not just pocket change.”

From a macroeconomic perspective, the GDP or output is measured in annual increments.

“If we were to think of output per day, our economy produces over $30 billion on average each day,” said Taylor. “Therefore we can expect to see GDP around $30 billion higher in 2004 simply because of leap day.”

The good news is that $10 billion more is raised in tax revenue.

“However, the government has to stay open one more day, so this probably won’t have much impact on the budget deficit,” said Taylor. “The really good news is that because leap year and presidential elections fall together, that gives us one more day to watch the donkeys and elephants sling mud at one another.”