We Finally Won Something! How Special Events and the 1996 Olympics Contributed to Georgia s Economic Growth

Transcription

1 Georgia Economic History SOCIETAL & TECHNOLOGICAL GROWTH IN MODERN GEORGIA We Finally Won Something! How Special Events and the 1996 Olympics Contributed to Georgia s Economic Growth Enduring Understanding Technological innovations, as well as social change, result in periods of significant, rapid adjustments, including opportunities for entrepreneurs, and the development of new goods and services. Lesson Essential Question How did the 1996 Olympic Games provide opportunities for economic development and contribute to Georgia s international image? Introduction Atlanta became a major league city in 1966 when the Atlanta Braves moved here from Milwaukee. In the same year, the Atlanta Falcons began playing and became one of the first NFL teams in the Deep South. The Atlanta Hawks followed in 1968 and finally, the Southeast s first professional hockey team, the Atlanta Flames, arrived in Since the arrival of major league sports, Atlanta has hosted two Super Bowls, several All-Star Games, NCAA Final Fours, 40 Peach Bowls, 15 SEC Championship games, and the 1996 Summer Olympic Games. Each of these special events brought in millions of dollars to the state s economy. This lesson examines the impact special events like the Olympic Games have on the economy of the state. GPS Standards SS8E1 The student will give examples of the kinds of goods and services produced in Georgia in different historical periods. SS8E3 The student will evaluate the influence of Georgia s economic growth and development. SS8H12 The student will explain the importance of significant social, economic, and political developments in Georgia since b. Evaluate the impact of the 1996 Olympic Games on Georgia. Economic Concepts opportunity cost, economic growth, government revenues, government expenditures page 1 of 14

2 Georgia Economic History SOCIETAL & TECHNOLOGICAL GROWTH IN MODERN GEORGIA Knowledge The student will know that special events can generate millions of dollars for the areas where they are hosted. promoters of special events often expect local governments and companies to support the franchise through government expenditures and advertising. the 1996 Olympic Games and other sporting events have resulted in millions of dollars for the state and continue to have a lasting economic impact. there is fierce competition between cities to host special events. Materials Needed 1 copy/student: The Economic Aspects of Special Events Worksheet 1996 Olympics Notes Worksheet Estimating Olympic Costs and Benefits Worksheet One copy to display on overhead or LCD projector: Georgia Stories video The Economic Aspects of Special Events 1996 Olympic Notes Transparency The Economic Way of Thinking Transparency DVD player Core Skills The student will be able to read for information. draw conclusions. interpret a chart. explore life experience related to subject area content. Time Required 3-4 class periods Procedures 1. Begin class by telling students that they will be examining the impact of major events, such as the 1996 Atlanta Olympics, on a state s or city s economy. Explain to students that studying these events will assist them in their understanding of opportunity cost, government revenues, government expenditures, and economic growth. 2. Distribute The Economic Aspects of Special Events Worksheet, one per student. Show the Georgia Studies II video The Economic Aspects of Special Events and have students answer the accompanying questions. page 2 of 14

3 Georgia Economic History SOCIETAL & TECHNOLOGICAL GROWTH IN MODERN GEORGIA 3. Distribute 1996 Summer Olympic graphic organizer. Display the 1996 Olympic Notes and have students complete the graphic organizer. Make sure students understand how the Olympics, along with the other special events, have proven to be extremely important for Georgia s economic growth. 4. Display the Economic Way of Thinking Transparency and have students read the information. Next, tell students that, while the 1996 Olympic Games were beneficial to Georgia s economy, there were also many expenses that the city of Atlanta and the state of Georgia had to incur in order to host the Olympics. Land had to be cleared, roads improved, streets repaired, sidewalks widened, new lighting installed, additional resources devoted to clean-up and crime control, and over $500 million had to be spent to construct new dormitories, arenas, and stadiums. Overall, the Atlanta Committee for the Olympic Games (ACOG) established an operating budget of $1.5 billion. 5. Discuss each point on the Economic Way of Thinking Transparency. Ask students what rewards could be gained from hosting something as large as the Olympics. 6. Ask the students if they think the 1996 Olympic Games brought in enough revenue to cover the enormous cost of hosting the games. Tell students that in today s class they are going to imagine that it is the year 2046 and the Atlanta City Council is considering competing to host the Olympic Games again, in honor of the 50 th anniversary of 1996 Games. Tell students that they will determine if the potential benefits of hosting the Olympics will justify the potential costs. 7. Divide students into groups of no more than four. Tell each group to use their prior knowledge about the Olympics to help them answer the following questions. a) What are the financial costs of hosting the Olympic Games? b) What revenues will the Olympics create? c) What benefits other than revenues will this event generate? 8. Distribute the Estimating Olympic Cost and Benefits Worksheet. Ask each group to present its findings. As the groups do their presentations, complete the lists of costs and benefits on the Estimating Olympic Cost and Benefits Worksheet. After each group, subsequent groups need only to discuss new costs and benefits in detail. 9. Hold a general discussion analyzing the profitability of the Olympics. Benefits may include: revenue from television, radio, ticket sales, concessions, parking, hotels, restaurants, retails sales, and so forth; job creation at all of the above places; induced spending through the multiplier effect; increased tax revenues; new facilities to be used for other events; and increased publicity and community spirit. Cost may include: construction costs; maintenance costs; wages for event workers; increased traffic; crowding and increased wait time at stores and restaurants; and additional crime. page 3 of 14

4 Georgia Economic History SOCIETAL & TECHNOLOGICAL GROWTH IN MODERN GEORGIA 10. From the list of costs and benefits on the Estimating Olympic Cost and Benefits Worksheet, have the students complete the following tasks. a)for each cost, students should mark (M) if the cost is monetary with dollar payments or (I) if the cost is intangible; cost is not financial such as streets being closed, increased traffic, increased crime, etc. b)next, take the compiled list of revenues and benefits and have students label them as monetary (M) or intangible (I), and as direct (D) or indirect (ID) and then as short-term (S) or long-term (L). c)by now, the students should have enough information on the Worksheet to answer the question Would it be worth holding the Olympics even if the financial costs exceeded the financial revenue? (The answers is It might be, if the non-monetary benefits are large enough. ) 11. Explain to students that the issues of intangibles are difficult to quantify but tell them that issues such as increased pride, increased respect, increased fun, etc. are also important in the cost/benefit analysis and these factors may be the reason for hosting certain events. 12. Have students assign an estimated dollar amount regarding how much each item labeled as an intangible will potentially cost or benefit them individually. In discussing their choices, students will learn that many of these intangibles do have economic value, even if actual dollar payments are not made. Also, discuss some of the indirect benefits that each of these intangible benefits may bring. For example, increased respect may lead to increased convention business. 13. Direct students back to the Estimating Olympic Costs and Benefits Student Activity Sheet 3. Have students add any additional costs or benefits that would be associated with hosting the Olympic Games and follow the same procedures from step 7 (A-C). 14. Ask each group to prepare a presentation to be given before the class stating how hosting the Olympic Games could be beneficial even if total revenues do not fully cover monetary costs. Each group should look at the areas listed below to determine all the benefits, both tangible and intangible, and long and short term. a. hotel, restaurant, and other retail businesses b. the benefits of building new facilities c. job-related benefits d. publicity that may benefit the city s image e. other community benefits For more detailed 1996 Olympic information and pictures visit the following website found on the New Georgia Encyclopedia: Conclude the lesson by reviewing the Economic Way of Thinking Transparency. Ask students to relate the hosting of the 1996 Olympic games to each point. page 4 of 14

5 Georgia Economic History SOCIETAL & TECHNOLOGICAL GROWTH IN MODERN GEORGIA The New Georgia Encyclopedia For more background information to support this lesson, read these entries: Olympic Games in 1996 EconEdLink Online Lessons For more student activities on economic history in a U.S. context, use these lessons: Assessment no additional activities for this lesson 1. Which would be considered a potential cost of hosting the Olympic Games? A. increased international recognition B. increased employment C. increased tourism D. increased crime* 2. An example of an intangible cost caused by special events is A. retail sales. B. highway construction. C. building construction. D. increased traffic congestion.* 3. One of the intangible benefits of the 1996 Olympic Games was A. ticket sales. B. parking revenue. C. international recognition.* D. government expenditures. page 5 of 14

6 The Economic Aspects of Special Events Georgia Stories Worksheet Do You Remember? 1. How much will the Olympics bring to the economy of Georgia? 2. How much do conventions bring to the economy of Georgia? 3. What are the three types of special events mentioned in the story that bring in a lot of income for Georgia? 4. What was the historic special event that took place in Atlanta in 1996? 5. What are three major sports events that bring in significant amounts of money for Georgia? 6. Name three festivals mentioned in the story that bring in money for the state. 7. What is the name of the festival that takes place annually in Dublin? 8. Name three ways in which conventions, sports activities, and festivals help the local economy. page 6 of 14

7 The Economic Aspects of Special Events Georgia Stories Worksheet 9. About how many visitors come to Georgia every year to attend special events? What Do You Think? 10. Conventions have a multiplier effect on Georgia s economy. In your own words describe what this means. 11. What were some of the most important reasons that Atlanta has become one of the top two or three convention cities in the U.S? 12. Do you think having the 1996 Summer Olympics in Atlanta was a good thing? Why or why not? 13. Of all cities that were competing to host the 1996 Olympic Games, why do you think Atlanta was selected? Make sure to use specific economic reasons in your answer. Adapted from: Clairmont Press, Georgia and the American Experience: Final Revised Teacher CD-ROM 2005 page 7 of 14

8 The Economic Aspects of Special Events Georgia Stories Worksheet KEY Do You Remember? 1. How much will the Olympics bring to the economy of Georgia? 5 billion dollars 2. How much do conventions bring to the economy of Georgia? 3 billion dollars 3. What are the three types of special events mentioned in the story that bring in a lot of income for Georgia? Conventions, sporting events, and festivals 4. What was the historic special event that took place in Atlanta in 1996? The Olympic Games 5. What are three major sports events that bring in significant amounts of money for Georgia? Answers may include the Atlanta Braves, the Atlanta Falcons, the Atlanta Motor Speedway, and the Peachtree Road Race. 6. Name three festivals mentioned in the story that bring in money for the state. Answers may include the Rose Festival, the Vidalia Onion Festival, the Antebellum Jubilee, the Renaissance Festival, the St. Patrick s Festival, and the Stock Show and Rodeo. 7. What is the name of the festival that takes place annually in Dublin? the St. Patrick s Festival 8. Name three ways in which conventions, sports activities, and festivals help the local economy. Visitors require motel rooms, food, and tickets to shows. Visitors also buy various items and souvenirs. In addition, putting on the event provides work for citizens involved in cooking, cleaning, building, acting, and many other tasks related to putting on an event. Finally, event vendors spend money on supplies and staffing. 9. About how many visitors come to Georgia every year to attend special events? over 40 million visitors a year What Do You Think? 10. Conventions have a multiplier effect on Georgia s economy. In your own words describe what this means. When people come to a convention, they spend money on other products and services like hotels, restaurants, shopping malls, gas, etc. In addition, conventioneers need wood, paint, electricians, etc. so they hire Atlanta companies to do the work. page 8 of 14

9 11. What are some of the most important reasons that Atlanta has become one of the top two or three convention cities in the U.S.? Hartsfield Airport, lots to do: museums, night clubs, restaurants, many hotels, etc. 12. Do you think having the 1996 Summer Olympics in Atlanta was a good thing? Why or why not? Answers will vary. 13. Of all cities that were competing to host the 1996 Olympic Games, why do you think Atlanta was selected? Make sure to use specific economic reasons in your answer. Answers will vary but should mention Hartsfield, large stadiums for professional/ college sports teams, experience hosting conventions, etc. Source: Clairmont Press, Georgia and the American Experience: Final Revised Teacher CD-ROM 2005 page 9 of 14

10 1996 Olympic Notes Transparency, page 1 Playing Host 1996: Georgia hosted the Olympics in Atlanta. Summer Olympics brought over 10,000 athletes representing 197 different countries. More than 90,000 volunteers took part. 79 countries won at least one medal. Other Sites (fill in 1 st /Blue Ring) Athens Columbus Jonesboro Savannah Benefits to Georgia (fill in 2 nd /Yellow Ring) Millions of dollars spent to make world class athletic facilities. These include Olympic Stadium. Lake Lanier Rowing Center. Brought international recognition to Atlanta Tremendous media coverage which led to increased tourism. international business expansion. More Benefits to Georgia (fill in 3 rd /Black Ring) Brought job opportunities to thousands of Georgia citizens through volunteer programs. educational programs. training programs. Brought millions of dollars into Georgia s economy page 10 of 14

11 1996 Olympic Notes Transparency, page 2 Negative Moments (fill in 4 th /Green Ring) Centennial Olympic Park Bombing o Alice Hawthorne killed in the explosion o 117 injured Criticisms of 1996 Olympic Games (fill in 5 th /Red Ring) Press criticized Olympic planners for lack of infrastructure (basic facilities like roads, bridges, ports, etc.). Street vendors on every corner aggressively selling their goods page 11 of 14

12 1996 Olympic Notes Transparency, page 3 Source: Wikipedia Olympic Symbols page 12 of 14

13 The Economic Way of Thinking Transparency 1. People make choices about what they are going to do. 2. There is a cost for every choice. 3. People make choices based on the rewards that they will get. 4. People create rules that affect their choices and how they act. 5. People gain when they agree to trade with each other. 6. There are costs and benefits that will affect the future. page 13 of 14

14 Estimating Olympic Costs and Benefits Worksheet Part One: Estimating Olympic Costs Type of Costs Monetary (M) or Intangible (I) Item Amount of Personal Cost Part Two: Estimating Olympic Benefits Type of Benefit Item Monetary (M) or Intangible (I) Direct (D) or Indirect (ID) Short term (S) or Long Term (L) Amount of Personal Benefit Adapted from Phillip Saunders & Michael Kraft (1996). It worked in Atlanta, Will it Play in Peoria? The Senior Economist: Atlanta: Why Go for the Gold? 11(4). National Council on Economic Education page 14 of 14