Let’s Spend $5 Billion To Generate $4.4 Billion!
Crain’s Chicago reports that anew independent study of the 2016 Olympic plan debunks their inflated claims of economic benefits. The new study, by Anderson Economic Group of Michigan, estimates the games would generate $4.4 billion in total economic impact. Download the report.
Since the 2016 folks say the games will cost about $5 billion (No Games Chicago believes the true cost will be MUCH higher), the entire project will generate less impact then ot costs to produce and stage the games. We might as well just raise that money and give it directly to needy Chicagoans to pay their bills and purchase homes.
Crain’s further reports:
The firm also raises warnings about potential costs to taxpayers, estimating that the public could be on the hook for up to half the cost of the Olympic Village. Chicago 2016 plans for private developers to shoulder all of the $1-billion project cost. “There has, however, been some doubt that sufficient private funds will become available,” the report states.
Anderson predicts taxpayers could be exposed to cover $500 million in costs related to the village, or purchasing insurance for the games that is expected to total about $68 million in premiums. Those factors reduce the economic benefit of spending from the Olympic Village project and the overall economic benefit to taxpayers from hosting the games.
Chicago – please JOIN us to protest this scam! We are rallying in front of City Hall on Tuesday, September 29 at 5:30pm.
The games last for two weeks, the tax increases to pay for them will be forever.
You know, I think i heard the dude from this site on the radio talking about how “all of the economists who say the games can/will be profitable aren’t from Chicago”.
I’m fascinated that firm in fiscally solvent ::burp:: Michigan offers these comments and a Chicagocentric org like NGC publishes it as gospel.
Rio has budgeted $14.4 Billion for the games with complete guarantees from local and national governments there, that all expenses for the games will be met. This shows that Rio organizers have a handle on reality and are cognizant of the true costs of these games, while Chicago promoters prefer to lie and dissemble, squirreling public money away in TIF slush funds while starving the city of needed services and improvements. Our local promoters know that Chicagoans will not stand for such a massive commitment of public money, so they can’t speak the truth.
I believe Rio will probably be awarded the bid because of this. Their budget is greater than those of the other three bidding cities combined, and while there is some citizen protest against the games there, there is nothing like the public outcry against the games here in Chicago. Additionally, the Brazilian economy is currently more stable than ours is or will be for a long time.
All in all, Rio probably looks like way more gain for much less pain to the IOC. Let’s hope that is indeed the case this coming Friday.
This coming Friday will be the verdict. If we get stuck with the steroid developers’ convention, I’m OUTTA HERE!!!!!!!! On a one-way mission as far as I can move. Until the car runs out of road to drive on.
Laura, the budget for Rio has a much higher amount (actually it is $2.8bi for the games, and $11.6bi for infrastructure needed for them).
Just to give an idea the PanAm 2007 games cost around $2.5bi, how come they want to organize a much bigger event with just $300million more? For the record, it will be almost impossible to use the venues from the Pan Am games for the Olympics.
Have you guys actually made the math on how much it “would cost per-capita” for you this Olympics should Chicago win?
What I wanted to say is that it will be much higher, than that…
$14.4 Billion is the figure Rio is guaranteeing.
Inasmuch as the host city has to guarantee any overruns, and the London 2012 games are up to $16 Billion already, I’m sure Rio’s games will cost still more.
Whatever.. it will break their budget, but maybe they don’t care.
Well.. my fiirst issue is the fact that President Obama,his wife,and Oprah is going to strong arm their celebrity to get what they want. Like hey I’m the first black President,and here is a very rich black celeb Oprah,and you better not say no to us. This is the part that disgusts me first of all. And I can surely understand how abusive the powers can be to poorer common folk in Chicago if the Olympics were held there. I hope the commity holds firm,and doesn’t let the blackness,or strong arm power influence their decision. Again I think it very inappropriate to have Obama go to Denmark,and make a plea. I think it is using his power where he has NO business using it!