system
Given the following post, respond as if you're commenting on Reddit:
human
What is the expected economic impact of Santa's global distribution of toys made with magic and free elf labor?

I assume Santa uses magic to conjure up the materials needed to manufacture the various toys.  I also assume his elves work for free (maybe they get some room and board, but that too is provided via magic), and they can perform specialist tasks, like forging microchips for game systems, etc.  His reindeer also serve as a super efficient global distribution network, so he doesn't need to hire any deliverymen or procure any delivery services.  With all these presents being delivered to Christmas trees around the world without contributing anything at all to the global economy, what economic impacts can we expect?  Mass unemployment?  Commodity crashes? Deflationary pressure?  Inverted yield curves?  How bad is it going to be?
gpt
Santa drives the price of toys and manufacturing labor down each Christmas. So the supply curve shifts right. Christmas however temporarily increases demand, so there are higher goods supplied at the same price point.

Since Christmas has been going on for years predictably the market expects it and corrects itself in small increments, so there are no large changes to the market.

After Christmas demand for toys goes down, and the labor supply from the elves will not be seen till the next year. This is a bit hard to track how much they are paid because it appears Santa collects payment in milk andcookies. We need more research and need to index cookie prices. Further we would need to take into account store bought vs home made, the amount of cookies supplied per household, and type of cookie.