The Olympics is a worldwide event that the UK hold dearly and maintain a key influence, such as with the Paralympics which will be the biggest yet and will mark an historic event in worldwide sport.
The London 2012 Olympics are justified, in fact they may have over spent 10 times on purpose, as according to previous British economies they have benefited from new foreign investment, increased tourism and prestigious value in British businesses that lasts for many years worldwide after the events
This has been a steady increase in investment for decades since the early 1900's;
In 1908 London Olympics cost ￡15,000 in today's money that is about ￡1,420,500
In 1948 London Olympics 40 years later cost ￡750,000 in today's money that is about ￡23,077,500
64 years later in 2012 London Olympics cost ￡12,000,000,000 - ￡20,000,000,000.
If in 40 years cost went up 10 times then it is fair to say that in almost double that time 80 years the costs would be 10 times ￡23m = ￡230 million, then 10 times that is ￡230m = ￡2.3bn, the UK could be investing up to ￡24 billion that's 10 times more?
The truth is the UK has a mature economy that can absorb long term investments such as the Olympics.
Each time rail and air infrastructure is massively changed and improved to increase visitor numbers such as a high-speed train that take people to the stadium from London in 7 minutes!
The UK have recently drafted plans for another smart long term investment a new airport called "Thames Estuary airport" cost ￡100bn, the Olympics lasts for 16 days and cost a quarter of the airport ! ! ! Must be an important investment that pays back allot over time!
I'm a big fan of the Olympics but I don't think there is a city that hosted that ever really recoups all of the costs. You can't look at this as simple economics though - it is the spirit of the games, the gathering of nations, the good will, etc. . . things that are "priceless" - but in this economic climate, it's an expense that won't be recouped.
I think it will justify the cost so long as it does not exceed $20b
Money cant buy everything !
It is argued that the legacy of the London Olympics will justify the cost and inconvenience caused by the games. What is meant by this? Do you agree? Explain your answer?
