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News Desk
The Culture Secretary who is the minister in government responsible for the London Olympics, Jeremy Hunt, commented that the Games will be “a massive Keynesian boost for the economy”. The statement comes in response to criticism that the Government's decision to double the amount of money for the opening ceremony. Mr Hunt pointed out that all the advantages of hosting an event with such an international exposure, will bolster the British economy. The Culture Secretary pointed out that the promotion of the country internationally will make up for the cost, such as the £39m spent on advertising. In addition, the television audience of the opening ceremony will reach four billion, he told the Financial Times. “We are never going to have this again. We want to make sure we do everything we possibly can to help Britain”, Mr. Hunts added.
Jeremy Hunt considers that, in a moment with a lack of confidence in the British economy, hosting an event like the Olympics is the only way to create a positive sentiment over the businesses in the UK, according to a report by the Financial Times. “There are people who say that doing a project like this is a massive Keynesian boost to the economy. That is definitely the case, in terms of money being spent”, he said.
However, some economists, like Bridget Rosewell, chairman at Volterra Consulting, consider that the money spent in infrastructure will not be given back in terms of benefits. The professor in the University of Michigan and contributor to a government-commissioned evaluation of Olympic long-term benefits, Stefan Szymanski, points out in the same direction. “Olympics infrastructure is used once and then at best it is used below capacity, or at worst has to be shut down. What you get out of this is a big park”.
Reporting by Paula Planelles
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