Hop, Skip & An Economic Jump?

Ever keen to get some positive spin into the public, the Government has published a report that highlights the economic boost to the UK economy as a result of hosting the Olympics is valued at £9.9 billion.

 

Clearly good news right?

 

Well, actually no……if you are not too dizzy from the spin. Scratch very lightly beneath the surface (well actually just blow the dust off) and the Government have estimated that the games cost £8.9 billion to host. The net effect being a boost of £1 billion.

 

But that’s still good news?

 

Consider this……what would UK businesses have created if the Olympics was not hosted? Surely we could trust the Private Sector to have created more than a £1 billion economic boost over a 4 year period? AKA ‘the counterfactual’ (what would have happened anyway).

 

Now take off the flakey optimistic assumptions used by the Government and I would suggested that the actual net economic boost is far lower in real terms and closer to breakeven.

 

Now I appreciate that I could be accused of being a killjoy given all the great memories, but one of the justifications for hosting the Olympics by the Government was the boost to the UK economy. 

 

Barely breaking even is not a boost in my books.

 

Just saying……