Wagner's Law

Wagner's Law is an economic principle that suggests as a country's economy grows, its government expenditure will increase at a faster rate than the economy itself. This happens because a wealthier society demands more public services, such as education, healthcare, and infrastructure. Essentially, as people become more prosperous, they expect their government to provide more support and services, leading to higher government spending. This relationship highlights the tendency for public spending to rise in response to economic development and growing societal needs.