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:
“Children, I grant, should be innocent; but when the epithet is applied to men, or women, it is but a civil term for weakness.”
—Mary Wollstonecraft (1759–1797)
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Minne Wead: Star-spangled Spig. Damn the martinis, full speed ahead and don’t give up the ship.”
—Frank Fenton, William Wister Haines, co-scenarist, and John Ford. Spig Wead (John Wayne)
“The post-office appeared a singularly domestic institution here. Ever and anon the stage stopped before some low shop or dwelling, and a wheelwright or shoemaker appeared in his shirt- sleeves and leather apron, with spectacles newly donned, holding up Uncle Sam’s bag, as if it were a slice of home-made cake, for the travelers, while he retailed some piece of gossip to the driver, really as indifferent to the presence of the former as if they were so much baggage.”
—Henry David Thoreau (1817–1862)