Will you kindly give a few more details about the economic conditions during that time of "The Gift of the Magi"?

There is no date given in "The Gift of the Magi," so the
exact time period in which the story is set is uncertain. The story was published in
1906.

Since Jim and Della live in an upstairs flat, we can
assume they live in an urban location, although not in one of the wealthier areas.
 Della hopes Jim doesn't compare her to a "Coney Island chorus girl" when he sees her
short hair, so they live in or close to New York City. Jim is employed, but has had a
reduction in pay from $30 to $20 per week. It would appear Della is not
employed.

Jim and Della live in a time when housing is
difficult to obtain, food is purchased fresh from specialized markets, gas stoves are in
use for cooking, and wages are low. Jim probably works long hours and has few benefits
from his employment.