Putting a price on the Olympic Games
There has been fierce competition as contestants “go for gold”.
For London to become the host was an entirely different competition; stretching back to 1997 when the British Olympic Association first began working on the bid, which would eight years later make London the first city to be awarded a third Olympics.
But is the Olympics host city really a “winner”?
Olympic Games are usually highly subsidised affairs, with taxpayers picking up a bill amounting to billion of dollars.
Given the large costs of staging the Olympics, politicians and other advocates of hosting the event tend to bank on economic assessments declaring large economic benefits from hosting the Games.
But do the Olympics actually bring such economic benefits?
Did our great games in Sydney benefit in 2000?
Studies during the 1990s estimated that the Sydney Olympics would bring substantial increases in Australian consumption, with a top estimate of $5.6 billion. But were they realistic figues? It is some complicated calculation.
Many factors, other than the Games influence what happened to the Australian economy.
Some researchers suggest that rather than producing an economic benefit the Sydney Games actually reduced Australian household consumption by $2.1 billion.
It seems that while the Sydney Games brought much pleasure to many people, it is unlikely that it came out with any sizeable economic benefits.
So, how is London faring?
The United Kingdom PM noted that the Games would bring a $20 billion boost the UK economy.
But, many disagree, with some analysts noting that the huge construction prices. And it is no secret that the entire world economy is rocky at the moment.
There has been some back and forth banter about the economic impact of the London Games, and from past research and the voitility of the current market, this will be another games that may not be bringing positive economic impacts to the host city.
That is not to say the Games are not worth while though. The Olympics inspire the world to a peaceful future for humanity. It works to promote mutual understanding and goodwill among the not only athletes, but the world.