Applied Economics: Thinking Beyond Stage One (ISBN 0-465-08143-6) is a 2003 nonfiction work by economist Thomas Sowell.
Sowell discuss how basic economics is generally misapplied because politicians think only in Stage One. Stage One is the immediate result of an action, without determining what happens then. He argues that many politicians cannot see beyond Stage One because they do not think beyond the next election. He gives as an example of Stage One Thinking, a State government which raises taxes on a business. The immediate result is more revenue for the State government. However, over the course of time, that business might move bits and pieces of the company to another state or new businesses may choose another state to place a new factory. Over the course of time, the State will lose revenue because businesses will go to other states.
Famous quotes containing the words applied, thinking and/or stage:
“Technology represents intelligence systematically applied to the problem of the body. It functions to amplify and surpass the organic limits of the body; it compensates for the body’s fragility and vulnerability ...”
—Shoshana Zuboff (b. 1951)
“I cannot help thinking that the menace of Hell makes as many devils as the severe penal codes of inhuman humanity make villains.”
—George Gordon Noel Byron (1788–1824)
“We must be willing to change chairs if we want to grow. There is no permanent compatibility between a chair and a person. And there is no one right chair. What is right at one stage may be restricting at another or too soft. During the passage from one stage to another, we will be between two chairs. Wobbling no doubt, but developing.”
—Gail Sheehy (20th century)