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 bodys fragility and vulnerability ...”
—Shoshana Zuboff (b. 1951)
“Begin thinking of death and you are no longer sure of your life. Its a Hebrew proverb.”
—Leo V. Gordon, U.S. screenwriter, and Arthur Hiller. Major Bergman (George Peppard)
“I know that each stage is not going to last forever. I used to think that when he was little. Whenever he was in a bad stage I thought that he was going to be like that for the rest of his life and that Id better do something to shape him up. When he was in a good state, I thought he was going to be a perfect child and I would never have to worry; he was always going to stay that way.”
—Anonymous Parent of An Eight-Year-Old. As quoted in Between Generations by Ellen Galinsky, ch. 4 (1981)