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)
“Man is only a reed, the weakest in nature; but he is a thinking reed. There is no need for the whole universe to take up arms to crush him: a vapor, a drop of water is enough to kill him. But even if the universe were to crush him, man would still be nobler than his slayer, because he knows that he is dying and the advantage the universe has over him. The universe knows nothing of this.”
—Blaise Pascal (1623–1662)
“In Manhattan, every flat surface is a potential stage and every inattentive waiter an unemployed, possibly unemployable, actor.”
—Quentin Crisp (b. 1908)