A lot of people can’t see where the games went over budget when it spent its entire budget, with just a bit more that is forgivable. They don’t miss what wasn’t delivered and some of that group might not even believe that what wasn’t delivered can be controlled. I am of the opposite belief that sales is positively affected by advertising and marketing. So lets delve into my post further.
The planned budget for this event was $2.4 bn and the final tally was $2.7 bn. Most of the attention has been (mis)directed at that extra $0.3 bn. But for that $2.4 bn, this was promised:
1. athletic facilities and dormitories converted to affordable housing
2. influx of tourists and a boom in business
3. a new rail line to the airport from downtown
Only the first item was delivered. The present defense is that the games did take place and that that $0.3 bn is a smidgen over budget. Its a very uneducated defense that is also hard to defeat because to defeat it you have to get back to grade 1. Where’s items 2 and 3? If those things are to be delivered then the games most definitely went over budget.
Was it ineptitude? No. There is reasonable grounds to suspect corruption and embezzlement. 4 city hall managers were recently fired in a bid rigging scandal. They operated with suppliers who conspired to raise the prices of supplies ordered by city hall to maintain and fix the city, from affordable housing to road pot holes. Which opens another can of worms because the city’s record on maintaining affordable housing rests on being on budget all the while things that need repairing pile up at a faster rate. Being on budget is a bit of a misdirection.
Being on budget is just a way of saying you spent all the money. Like coming home from the store with no cash and 1/3 of the grocery list.
Jeff Immelt, CEO of GE just retired. if this was his record the press would say he wasn’t any good.