Deadweight loss

In economics, a deadweight loss is a loss of economic efficiency that can occur when equilibrium for a good or service is not Pareto optimal. (http://en.wikipedia.org/wiki/Deadweight_loss)

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A child learns early about Santa Claus, an imaginary fellow who visits the homes of good little girls and boys at Christmas, leaving them gifts. The children always look forward to the day and even after they grow up to be adults because of gifts. However, except emotional side, gift is waste of money. Because the value of a gift which measured by a receiver is different with that by a giver. In the most cases, a receiver tends to think little of a gift than a giver.  The difference is deadweight loss. To reduce deadweight loss, it is better to give money than a gift. If a giver doesn’t know which gift a receiver want to have, the differences tend to be increased. And if the gift is what the receiver doesn’t want to have, a deadweight loss is maximized. In this sense, a policy which public don’t want can create a significant deadweight loss. If public want economy development, but a government gives the public unexpected gifts such as increase of social security or development of new town, a deadweight loss occurs as a tax increase.