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)
“[A person] is a thinking intelligent being, that has reason and reflection, and can consider itself as itself, the same thinking thing in different times and places; which it does only by that consciousness which is inseparable from thinking, and, as it seems to me, essential to it: It being impossible for any one to perceive, without perceiving that he does perceive.”
—John Locke (1632–1704)
“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)