Evaluate the Economic Consequences for the UK Economy of the 2012 Olympics When Jacques Rogge announced, on the 6th of July 2005 that London would be the 2012 Olympics host city it was met by jubilation across the United Kingdom. During the “Boom” years, the Olympics were seen to be a great opportunity to exhibit the United Kingdom to the world and bring in a huge boost to the UK economy. However, now the Olympics are taking place during the worst financial crisis since the 1930s and with the government still maintaining a huge budget deficit, many are questioning whether the Olympics will benefit the United Kingdom after all.
The Olympics are the largest sporting event of the year. Billions of prying eyes will be on the city of London throughout the 7 week event. The government has set out how it intends to spend the £9.3 billion of public sector funding on new infrastructure, security and the games themselves. Coupled with the Diamond Jubilee it is likely that the UK will be in the international spotlight throughout the summer.
A large part of the funding will be spent improvements to infrastructure. Already the largest urban shopping centre, Stratford City, has been built close which is expected to bring 20,000 new jobs to the area and where many tourists will visit and spend money. Although this was not directly budgeted with the Olympics and would have been built anyway(not for another 5 years) this will certainly be a major benefiter from the games. Over 6000 construction jobs have been made because of the Olympics to improve infrastructure like the Overground railway, Docklands railway, the Olympic village and numerous Olympic venues. However, the government has been criticised because around 42% are migrant workers so a lot of money will not stay in the country. Also, a lot of the money is going to be spent on security and not contribute to the productivity of the country.
It is believed that most of the benefit from the Olympics will...
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