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It ruined then because the infrastructure was only used once.

If the same event was held there every 4 years, they could reuse much of the hard infrastructure and generate more return on not much more investment.

That said, it will never happen because the IOC is effectively a PR firm at this point, they'll make much more money from a new country every 4 years than they will from Greece repeatedly.

That's as much their fault as it is the Olympics, plenty of other places (mostly smaller cities) are thriving because of the jump start the Olympics gave them.