Abstract
Abstract In 1863 Adolph Wagner first published his so-called ‘Law of Ever-Increasing State Activity’ in his analysis of the Austrian Budget.1 Since then his ‘law’ has attracted a great deal of attention in economic discussion and has stimulated further study in various countries.2 One result of these analyses has been the rejection of his arguments while confirming the conclusions which he reached. Wagner did not succeed in demonstrating a causal relationship which accounted inexorably for a correlative growth of government expenditure and community output in the long run, and even less successful was his more restrictive contention that the former increased at a faster rate. This supports the proposition that Wagner, as the leading theoretician of the ‘Kathedersozialisten’, used the term ‘law’ to disguise his social and political value judgments in order to make them appear scientific and objective.
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