On Cell Phones & Electricity

"Cellphone service is widely available in India at low cost because it was regarded as a luxury and therefore left to the market, while electricity is hard to obtain because it has been regarded as a necessity and therefore managed by the government"
- Martin Feldstein, Harvard Economist, February 16th 2006 in the Wall Street Journal


6 comments:

  1. Hey, I visited your blog today for the first time! Damn impressive!

    Keep posting such stuff!

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  2. the American govt? or the Indian govt?

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  3. Lol, Indian only.. guess I should've made that fact explicit!

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  4. There is a problem with that statement, as mobile phone require electricity, invariable of whether you have mobile service at low cost or not, you can't make use of the mobile network service, unless u got a backpack full of cell phone batteries only... so they go hand in hand sort of... So basically luxury needs necessity..or brings necessity along with it...

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  5. Hahaha, technically you are correct. But his statement was said in a more economical framework than cold hard logic. And, of course if you connect all the cellphones in India to all the power plants simultaneously to charge up, the power plants would still be producing excess power.

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