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September 23, 2017

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London Games shows off capitalism in action

In a recent article for Reason, Ira Stoll praised the 2012 Olympics — not only in the body but the title itself — as a "Triumph of Capitalism" (July 23, 2012).

He's entirely correct — but not for the reason he thinks.

Stoll's characterization of the Olympics as "capitalist" seems to reflect their funding "largely not from governments but from the private sector." Oh, and also the fact that "private property" rights (of a sort) are being traded:

"NBC (not a Cuban or North Korean television company but an American one) agreed to pay a reported US$4.38 billion for the rights to broadcast four Olympics, a sum that is itself made possible by NBC's sale of commercial sponsorship time to advertisers. Even 'broadcast' is now a misnomer, as the games are streamed on the Internet and available on cable channels."

Stoll is typical of the kind of "libertarian" for whom "private property rights" and large "private" revenue streams — whatever their source or legitimacy — are the be-all and end-all.

If you define "capitalism" simply as an economy in which most activities are carried out by private corporations and serve as sources of profit for them, then Stoll's entirely correct. And if, like me and the other left-wing market anarchists at Center for a Stateless Society, you define "capitalism" as a system in which the state subsidizes big business, protects it from competition, and enforces the artificial property rights and artificial scarcity rents from which it derives its profit, the Olympics also fits the bill.

Whatever amount of private funding the Olympics gets, it also gets a pretty hefty chunk of change from taxpayers; and the core functions and infrastructure on which private investment piggybacks are mostly government-funded.

The Olympic Delivery Authority (ODA) is a statutory corporation, accountable to the Department for Culture Media and Sport, created to oversee development of the Olympic Park and associated transport infrastructure. The ODA's budget — in the billions of pounds — comes from a funding package agreed on by the Mayor and City of London.

Of course this state funding (from both tax revenue and the National Lottery) doesn't preclude the fact — no doubt comforting to Mr. Stoll — that it passes through some corporate hands along the way. The actual work is carried out by a private contractor — namely CLM, a parasitic consortium of CH2M Hill, Laing O'Rourke and Mace.

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