Did Hosting the Olympics Benefit the Uk Economy?

545 Words3 Pages
My initial perception of this question would be that hosting the Olympics did benefit the UK economy. Throughout this answer, I shall prove if my answer is correct or incorrect using data that I have researched. Firstly, the 2012 London Olympics was expected to create 30,000 jobs during construction. In addition to these, the facilities that will be created will result in the creation of 50, 000 permanent jobs for the future. Therefore there will be an approximate 80,000 jobs to be created due to the London Olympics. Even if the Olympics will cost millions of pounds, it has created many jobs. This means that the vast amount of unemployed people will be employed again, which will lead to many people receiving a steady salary or wage. The salaries and wages will mean that more people will have a higher disposable income, which means the will spend more money at local businesses. This leads to those businesses expanding due to more demand, and if more people are spending money the currency will become healthier, meaning a better UK economy. This is why I believe the Olympics benefitted the UK economy. However the UK's national debt is currently $1.04 trillion, or 66 per cent of total GDP. The estimated cost of hosting the Olympics is $9.3 billion. So even if the current status of the UK’s economy is a recession the government decides that hosting the Olympics would save the UK’s economy and save them from the recession. Once you bid for the Olympics, you have to be able to spend loads of money on essential things from the stadia to the security. Thus meaning, vast amounts of money is being spent while the UK are going to a very harsh time. Can the Olympics make back the money that they have lost? So this is why I do not think the Olympics benefitted the UK economy. When the Olympics come to a country, it brings thousands of tourists that bring lots of money.
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