When the first Grand Prix was held in Adelaide in 1985, government officials touted how beneficial it would be. However, they were not able to produce a shred of evidence to support their enthusiasm. So the Economics Society of South Australia, jointly with economists from Flinders and Adelaide Universities and the Tourism Department, examined that first Adelaide event. It was the first and most complete economic analysis of any special event and was cited in every study on the subject for over twenty years. What did it find? In terms of employment and income generation the Grand Prix was only marginally better than the next best thing and then only because the Federal Government gave the State a grant! The more enthusiastic the announcement – the more it pays to check!
The same goes for the enthusiastic job promises for new infrastructure proposals. Ask yourself how valid they are – and how they have been derived.
Reference: The Adelaide Grand Prix, 1985, published by the South Australian Centre for Economic Studies.