Applied Economics

Thinking Beyond Stage One

by: Thomas Sowell

in: Political Theory

Summary:

The book examines the long-term consequences of economic policies and decisions, critiquing the lack of consideration for secondary effects in public policy. It uses empirical evidence and straightforward analysis to explore various economic issues, including healthcare, housing, and discrimination, challenging readers to think beyond immediate impacts.

Key points:

1. Incentives Matter: Sowell stresses that incentives are key in economics and that policy outcomes should be judged by the incentives they create, not just their intentions.

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