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)
“I’ve often wondered why she laughed
On thinking why I wondered so;
It seemed such waste that long white hands
Should touch my hands and let them go.”
—Allen Tate (1899–1979)
“Even the most incompetent English actor, coming on the stage briefly to announce the presence below of Lord and Lady Ditherege, gives forth a sound so soft and dulcet as almost to be a bar of music. But sometimes that is all there is. The words are lost in the graceful sweep of the notes.”
—Robert Benchley (1889–1945)