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Matthew and Luke tell completely different (and contradictory) accounts of the birth of Jesus.  Neither are meant to be taken literally.  They were writing a theological message (sermon) to introduce their gospels.  Where the two agree is that the Jesus they were going to describe was a messenger who would turn the world upside down, casting down the rich and powerful in favor of the weak and poor.  There is our real Christmas story, a story of liberation and justice.