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:
“That a good fit between parental handling and child temperament is vital to help children adapt to the imperatives of their society is a crucial concept that can be applied to other cultures.”
—Stella Chess (20th century)
“Christina Bailey: I was just thinking how much you can tell about a person from such simple things. Your car, for instance.
Mike Hammer: Now what kind of message does it send you?
Christina: You have only one real, lasting love.
Mike: Now who could that be?
Christina: You. You’re one of those self-indulgent males who thinks about nothing but his clothes, his car, himself. I’ll bet you do push-ups every morning just to keep your belly hard.”
—A.I. (Albert Isaac)
“Remember that as a teenager you are at the last stage in your life when you will be happy to hear that the phone is for you.”
—Fran Lebowitz (b. 1951)