It has its upsides and downsides. Upsides include the country generally being pretty darn industrious and a hotbed for entrepreneurship, and having good socioeconomic mobility prospects for those who (A) don't start out genuinely poor, and (B) are willing to be obsessive about work. Downsides include burnout, dispassionate employees, and an icky tendency to associate poverty with immorality and wealth with morality. I personally believe we could definitely stand to move a little further in the European direction when it comes to labor culture and laws here in the USA.
It’s much more common in corporate jobs. So many people take vacation at that time that you can easily be unable to accomplish much at work otherwise. So either taking some of your vacation then or just having the whole place shut down is really typical.