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Connections and consequences
Wednesday, January 25, 2006

Paul Krugman explains some of why you can get powered up in Iraq. To condense:

The US decided to base electricity generation on natural gas but instead of building the required pipelines, they pushed to concentrate on oil production.

The US choose not to raise electricity prices for fear of creating unrest but also removed tariffs so that richer Iraqis bought lots of power hungry new appliances and toys.

It's hard to do things right if you don't understand how things connect.

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