Are the XXX Olympics really going to be golden for London?
From the cities of old Europe to the shores of the United States, spending cuts and austerity have been the political reality for much of the past four years.
In London however, no expense has been spared in putting on what has so far been a spectacular Olympic games.
The women's beach volleyball preliminaries on The Centre Court Stadium in Horse Guards Parade on London.
With the United Kingdom in a deep recession and their government facing a serious budget crisis, many have questioned whether the large Olympic expenditures have really been worth it.
The British government’s original estimated cost for the 2012 London games was $3.8 billion, but this number has since been increased to nearly $15 billion, with independent media projections projecting the true costs as high as $38 billion.
While this is roughly in line with the costs of previous Olympics -- and is short of the $42 billion Olympics put on in Beijing in 2008 -- it was a hard sell to many Britons in a time when the government has been forced to cut a plethora of social services.
Economists have long been divided over the question of whether the Olympics are money makers or just expensive national parties. Most agree that it will take years to determine if the 2012 games were a net gain or loss. However, despite the costs, there are benefits that come with hosting the Olympics that may make the investment worthwhile long after the caldron has been extinguished:
• Improved infrastructure
One of the clearest boons of hosting the Olympics is the potential to rebuild large portions of a city’s infrastructure.
This includes not only the obvious recreational improvements -- the stadiums, arenas and over sporting venues -- but also improvements to the transportation system, hospitality capabilities and local parks and greens.
While these improvements were costly, much of the cost will be offset by the games, leaving London with sparkling new facilities at a fraction of the normal cost.
• Revitalization of London’s East End
Much has also been made of the fact that many of the venues, including the Olympic Park and Stadium, are located in London’s economically disadvantaged East End.
The site of the Olympic Park was transformed from what LondonTown.com called a “deprived, desolate, polluted and neglected chunk of east London” to one of the largest urban parks in Europe and a testament to environmental sustainability.
After the conclusion of the games the area will remain parkland, the Olympic Village will be converted into high-end private apartments and a new university will be founded on the site, furthering the effort to improve what has historically been one of the poorest parts of the city.
• Economic stimulus
Another largely touted benefit of the Olympics is the economic stimulus that comes with it.
London spent at least $15 billion to host the games, and this money surely created many jobs for the residents of the UK. In hard economic times like these, a stimulus that is paid back largely in foreign money -- as people from around the world come to see the games -- is a popular selling point, even if it is not a panacea for economic problems.
There has also been speculation that the games will bring both short and long term increases to London’s tourist activity, bringing even more outside money into the city.
• National pride
Finally, one cannot understate the importance of the Olympics for national pride. The 2000’s may long be over, but we will always remember the cities of Sydney, Athens and Beijing for the games they hosted.
While it may not ever translate into dollars on a balance sheet, the eyes of the world are on London, and as networks across the globe rebroadcast Olympic events.
For two weeks the sun will once again fail to set on the mighty British Empire.
J. Christopher Proctor is a Summer 2012 USA TODAY Collegiate Correspondent. Learn more about him here.
This story originally appeared on the USA TODAY College blog, a news source produced for college students by student journalists. The blog closed in September of 2017.