Tuesday, July 27, 2010

Cost of London Olympics

How much did the London Olympics cost? Well in 1948, the London Olympics cost a meagre £730,000, with athletes staying at home and commuting by tube to save money. The event turned a profit of £29,420, on which the organisers then had to pay £9,000 in tax. (article at BBC on 1948 London Olympics)

The cost of the 2012 London Olympics has sparked quite a debate. In an era of austerity, spending around £7.267bn on new sporting facilities, infrastructure improvements and luxury accomodation may seem of dubious value, at least to those on public sector pay freezes.

However, in cost and benefits of 2012 London Olympics, I still feel the benefits outweigh the costs. Keynesian fiscal policy is currently out of fashion, with austerity ruling policy. But, an injection of £7bn into the economy will be of some boost in this difficult time.

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