Hmm. Well, firstly, I shy away from cards that actually say Merry Christmas (although I probably send a few when I run out and use the kids'). But we have a large family and also uni friends who we don't see that often, and usually include a newsy letter along with the card (or at least a few meaningful words). So I don't think that is all that wasteful cos it is the main correspondence of the year in a lot of cases. I did go through the list and thin out people we no longer hardly know. But I do see your point...it does seem rather a lot when added up.
I do send cards to people who are a long way away - mostly family. Or to people that would be hurt if they didn't get one. But I do feel that it's silly to give them people I see a lot of. Also, where the Christmas card is the *only* contact I have with someone, they tend to get dropped off the list pretty soon. I just don't see the point, when you have no contact with someone, year in, year out, except a Christmas card - that's not my definition of friendship or family.
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