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:
“Those who dare to interpret God’s will must never claim Him as an asset for one nation or group rather than another. War springs from the love and loyalty which should be offered to God being applied to some God substitute, one of the most dangerous being nationalism.”
—Robert Runcie (b. 1921)
“Courage charms us, because it indicates that a man loves an idea better than all things in the world, that he is thinking neither of his bed, nor his dinner, nor his money, but will venture all to put in act the invisible thought of his mind.”
—Ralph Waldo Emerson (1803–1882)
“Harvey: Oh, you kids these days, I’m telling you. You think the only relationship a man and a woman can have is a romantic one.
Gil: That sure is what we think. You got something better?
Harvey: Oh, romance is very nice. A good thing for youngsters like you, but Helene and I have found something we think is more appropriate to our stage of life—companionship.
Gil: Companionship? I’ve got a flea-bitten old hound at home who’ll give me that.”
—Tom Waldman (d. 1985)