Empty Seats and Empty Minds at the Olympics

The British Olympic organizers restricted ticket purchases, rewarded corporate purchases but not corporate use, imposed price controls on tickets available to the public and state violence against the resulting scalpers (touts) — and are distraught and surprised over the empty seats that characterize so many of the Olympic events so far.  To reduce the embarrassment and sense of scandal, organizers have carted in British troops–dressed in their camo!–to fill seats at gymnastics events, while other easily manipulated, low-time-cost groups on the government’s payroll are also being bussed in to other sparsely-attended venues.

Meanwhile, many thousands willing to pay market prices to attend Olympic events are told to bugger off.

The Olympics are essentially mercantile events in which planning takes place outside of market forces so as to achieve outcomes preferred not by consumers but by states.  (Peter Hitchens argues here that this trend started with the 1936 Olympics in Berlin when Hitler and Goebbels transformed them into “grandiose and torch-lit” spectacles.)  Regardless, the events in London are demonstrating once again what an LSE economist in the 1930s said about economics–that its “curious task” was “to demonstrate to men how little they know about what they imagine they can design.”  Why did Sebastian Coe and his team think they could effect a better outcome than what would result from the price system?  These are practical men, but even Keynes might admit that they are probably slaves of some defunct and incorrect economist.

Comments

  1. I find it humorous that the David Axelrod pilloried Mitt Romney for mild criticism of the London Olympics and we are finding out they are worse that Romney even imagined. I am well aware of Romney’s short-comings but you have to give credit where credit is due. He did in fact save the Salt Lake City Olympics turning it from a failed scandal-ridden fiasco to one of the few profitable Olympics in recent history. London should be so lucky.

    Is it any surprise that the UK is in a double dip recession?

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