Designed for the Business, Non-Business, Economics, Non-Economics Major(s) to Explore and Understand a Variety of Real-World Issues.
Monday, February 23, 2009
Economic impact of subsidizing sports
Anyone interested in the economic impact on local economies of government expenditures on sports (Olympics, stadiums, Super Bowl, etc…) should take a look at this article.
This article reminds me of what is currently being planned in Chester, Pennsylvania. They have already built a casino, and are currently building a soccer stadium due to be completed for the 2010 MLS season. Also, townhouses, apartments, office space, and retail space is due to be built there after the stadium, in two different phases. Clearly, this plan for development is not nearly as ridiculous as what was seen in Beijing, but could Chester perhaps see similar effects? In a time where the real estate market is so poor, could people even afford to move into the apartments planning on being built there? Also, would businesses be capable of moving their shops and offices to this location? It seems that although this idea could create jobs for Chester citizens, one must wonder if these funds coming from the state could perhaps go towards something more crucial at this time of economic hardship. And should this proposed development fail like Beijing, what would be done with all of the empty, and essentially, wasted space? I am curious as to what economists think of this situation, aside from the fact that they generally do not like pouring government money into sport franchises.
I'm surprised that wasn't prediction (or maybe it was, but not publicized) earlier. I remember reading an article before the 2008 Olympics started (I think it was in TIME magazine) about all the new construction for the upcoming games, and was surprised at China's extensive construction plans. I think it was a poor marketing move that by trying to impress the rest of the world with their intricate architecture and monumental arenas that they ended up looking very sheepish with overplanning and all their extra space. I also thought the bit about the soccer team backing out of playing at the Bird's Nest venus because the event could not fill a 91,000 seat stadium. I also wonder about the part mentioning the contractors and their incentive to build flashy, modern living spaces that few people can afford. I live in the Downingtown/West Chester area, where half-million dollar houses have sprung up by the dozens of developments in the last five years or so, most of which seem unoccupied and unaffordable to the average family in the area. Seems like the same type of situation to me. Shannon O'Lone
This article reminds me of what is currently being planned in Chester, Pennsylvania. They have already built a casino, and are currently building a soccer stadium due to be completed for the 2010 MLS season. Also, townhouses, apartments, office space, and retail space is due to be built there after the stadium, in two different phases. Clearly, this plan for development is not nearly as ridiculous as what was seen in Beijing, but could Chester perhaps see similar effects? In a time where the real estate market is so poor, could people even afford to move into the apartments planning on being built there? Also, would businesses be capable of moving their shops and offices to this location? It seems that although this idea could create jobs for Chester citizens, one must wonder if these funds coming from the state could perhaps go towards something more crucial at this time of economic hardship. And should this proposed development fail like Beijing, what would be done with all of the empty, and essentially, wasted space? I am curious as to what economists think of this situation, aside from the fact that they generally do not like pouring government money into sport franchises.
ReplyDeleteI'm surprised that wasn't prediction (or maybe it was, but not publicized) earlier. I remember reading an article before the 2008 Olympics started (I think it was in TIME magazine) about all the new construction for the upcoming games, and was surprised at China's extensive construction plans. I think it was a poor marketing move that by trying to impress the rest of the world with their intricate architecture and monumental arenas that they ended up looking very sheepish with overplanning and all their extra space. I also thought the bit about the soccer team backing out of playing at the Bird's Nest venus because the event could not fill a 91,000 seat stadium.
ReplyDeleteI also wonder about the part mentioning the contractors and their incentive to build flashy, modern living spaces that few people can afford. I live in the Downingtown/West Chester area, where half-million dollar houses have sprung up by the dozens of developments in the last five years or so, most of which seem unoccupied and unaffordable to the average family in the area. Seems like the same type of situation to me.
Shannon O'Lone