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Sports and Olympic competitions are:
-politics/fighting without actual war/bloodshed
-escapism (just like video games, hobbies, etc.)
-observing the potential of the human body when pushed to the limits; it's grace, power, accuracy
The olympics showcases this stuff on the world stage.
America tends to perform magnificiently because we are excited about competition, we fund/reward winners very well, and we have a diverse pool to draw athletes from. Diversity can be and often is a mixed blessing, but as far as the olympics is concerned its benefits are readily apparent.
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