Question

Do an internet search on public funding of stadiums/sports facilities (i.e., the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams) Pay particular attention to research presented by mainstream business news organizations such as: MSNBC and CNBC, as well as any economic think tanks such as the American Enterprise Institute, Brookings Institution, Cato Institute, or the Center for Economic and Policy Research. Links to several economic think tanks can be found at Economics Think Tanks.

Conduct an objective marginal analysis as covered by the text; objectively weigh marginal benefits and marginal costs of the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams. Determine whether or not the if the marginal benefits outweigh the marginal costs.

Please format your response as per below:

1. Identified marginal benefits.

2. Identified marginal costs – what opportunity costs are generated by the decision?

3. Do the marginal benefits outweigh the costs? Why or why not?

Note that this is a societal level marginal analysis so your costs and benefits must be societal level. Also, marginal costs are the opportunity costs which you need to identify.

Answer 1

The Marginal Benefits:

Public funding on sports facilities, has a significant marginal benefit for the nation and economy as a whole. Sports holds a special position in a nation's overall capacity. Its important for the government to invest in promoting sports in the nation by providing adequate facilities to the sports people. Constructing stadiums and providing sports facilities is essential for nurturing the talent and efficiency of young sportsmen. Making the sports facility available plays an important role in helping the sports personalities to bring home trophies and medals, which is a gloroius moment for the nation. From an economic point of view, sports has large potential to boost the economy as well. Large business opportunities is follows sports and thus promoting sports may lead to increase in GDP and a smooth economic progress.

The Marginal Costs:

The funding for these sports facilities are done from the hard earned money of the honest taxpayers of the nation. Making stadiums do not have any direct benefit for the nation and do not lead to the welfare of the society or economy as a whole. Thus investing that fund in promoting healthcare, education and other necessary aspects of a nation may lead to better outcome for the society and the nation as a whole.

Thus given the above reasons, the marginal benefits do not outweigh the costs.