[jiggy2011]

An invisible hander would probably say that the government should not have organised the olympics to begin with (effectively a monopoly).

Using tax money to put on an event of that scale where there was effectively only one organisation with the resources to provide security services is bound to make that one organisation optimize for cost saving.

If you had only private sporting events then security companies and event organizers would eventually optimize to a state of security that best served the expectations of their customers.