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:
“Writing prejudicial, off-putting reviews is a precise exercise in applied black magic. The reviewer can draw free- floating disagreeable associations to a book by implying that the book is completely unimportant without saying exactly why, and carefully avoiding any clear images that could capture the reader’s full attention.”
—William Burroughs (b. 1914)
“They were not thinking of the means by which they could win, but how they could
make use of the victory.”
—Julius Caesar [Gaius Julius Caesar] (100–44 B.C.)
“Once a child has demonstrated his capacity for independent functioning in any area, his lapses into dependent behavior, even though temporary, make the mother feel that she is being taken advantage of....What only yesterday was a description of the child’s stage in life has become an indictment, a judgment.”
—Elaine Heffner (20th century)