Do not think about, write about or deal with human behavior without determining the effects of incentives. It’s not their money, of course they’ll waste it.
Toronto is currently being subjected to, I’m sorry, is currently enjoying, the Pan Am Games. Strangely enough, this version of bread and circuses is unaccompanied by statists announcing how the “investment” in the Pan Am Games will produce economic values far beyond the government seed money. There is usually a multiplier effect so that the benefits so far outweigh the costs that only a fool would object to the government borrowing money to finance the extravaganza. Again, this has not happened this time. I wonder why. Is it because the analysis is so faulty that no one believes it anymore?
In any event, a curious result arises. If the Games cost $2.5 billion, which is unlikely, because this is the official cost. The real cost will undoubtedly be higher. Seven thousand, six hundred athletes are supposed to compete. Using these numbers, the cost for each athlete is about$328,947.00. Hmm.
Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Days of Songs and Mirrors: A Jacobite in the ‘45.”
Cui Bono–Cherchez les Contingencies