COMMENTARY
This week marks the beginning of the London Olympics, 2012’s iteration of the largest sporting event on the planet. More than 10,000 athletes from 205 countries will compete in hundreds of events, sprawling across greater London and beyond.
But there’s more to these Olympics than just the games.
(Full disclosure, NBC Universal, which owns msnbc, has exclusive rights to broadcast the Olympics in the United States through 2020.)
It starts with the swollen price of this year’s preparations. In 2003, the then-Prime Minister Tony Blair’s government estimated that the Olympics would cost British taxpayers a total of £2.5 billion (or, based on the exchange rate of the time, roughly $4 billion). Now that number has ballooned to £9.3 billion (or over $14 billion).
In a country where public sector jobs, education, health insurance and social welfare are buckling under austerity measures, spending billions of dollars on a colossal, one-time sporting event seems contradictory. As the English novelist China Miéville put it in The New York Times: “youth clubs and libraries are being shut down as expendable fripperies; this expenditure, though, is not negotiable.”
Prime Minister David Cameron has defended the expenditure by arguing, “we can derive over £13bn benefit to the UK economy over the next four years as a result of hosting the Games.” Economists, however, are skeptical, and the Olympic track record is not great. The economic consensus seems to be that the games’ consequences for London will be modest at best and unambiguously harmful at worst.
Surely there are better uses for £9.3 billion, like preserving public workers’ pensions or investing in long-term infrastructure needs?








