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:
“A propositional sign, applied and thought out, is a thought. A thought is a proposition with a sense.”
—Ludwig Wittgenstein (1889–1951)
“When we start deceiving ourselves into thinking not that we want something or need something, not that it is a pragmatic necessity for us to have it, but that it is a moral imperative that we have it, then is when we join the fashionable madmen, and then is when the thin whine of hysteria is heard in the land, and then is when we are in bad trouble.”
—Joan Didion (b. 1934)
“The spectacle of misery grew in its crushing volume. There seemed to be no end to the houses full of hunted starved children. Children with dysentery, children with scurvy, children at every stage of starvation.... We learned to know that the barometer of starvation was the number of children deserted in any community.”
—Mary Heaton Vorse (1874–1966)