Thursday, July 22, 2010

Questioning the Economic Wisdom of the U.S. World Cup Bid

The New York Times's Freakonomics blog asks whether it's really a good idea for the U.S. to try to host another World Cup, especially given the fact that the event is not a money-maker for the host.

The truth, however, is that most such events don’t provide much economic stimulus, and often turn out to be money losers. This isn’t to say that cities or countries shouldn’t try to host these events — but, as the Soccernomics authors argue, they should at least realize that what they’re doing is paying for the right to host a big party. The same is generally true for public funding of new sports arenas, as the economist Dennis Coates made clear not long ago.

Should the U.S. Really Try to Host Another World Cup?
The New York Times
July 19, 2010