Paris Olympics: Cost-Benefit Analysis and Long-Term Impact

Paris hosts the Olympics, not for profit, but for prestige. The estimated cost is $97 billion, up 15% from initial projections, mostly due to inflation. Public funds cover half, with the rest coming from private sources. Infrastructure receives half of the public money.

The Olympics promise 181,000 jobs and $57 billion in tax and social security revenue. The expected GDP boost is 0.5% during the event, then drops to 0.1%. The total economic injection is $122 billion. The IOC contributes $17 billion, which may offset losses seen in Tokyo and Rio.

Paris, already a tourist magnet, aims to restore its brand reputation. The expected increase in visitors is 2-3 million. The IOC predicts a $33 billion economic impact from 2017 to 2034.

Trade and investment benefits are highlighted, citing Sydney's success with business networking during the Olympics. Paris can leverage low-cost social events for business gains.

New bidding norms aim to prevent wasteful competition, focusing on utilizing existing infrastructure. Paris and Los Angeles secured future games through negotiated agreements, avoiding costly bidding wars.

Overall, the Olympics serve geopolitical and social goals, not just economic ones. Safety and smooth operation are paramount to uphold national pride.