In fiscal year 2023, US military spending reached approximately $820.3 billion, which is about 13.3% of the total federal budget. Personnel costs amounted to around $146 billion. The 2024 defense budget is projected to be $997 billion, surpassing the combined spending of the next nine countries.
Governments allocate substantial resources to ensure the readiness and effectiveness of their armed forces. In the United States, for example, a significant portion of defense spending goes towards personnel costs, reflecting the importance of maintaining a motivated and well-supported military workforce. Personnel costs often account for over one-third of the overall defense budget.
Understanding the balance between defense spending and personnel expenses is crucial for policymakers. This balance influences national security, military efficiency, and economic sustainability.
As nations navigate evolving security challenges, it is vital to analyze how these costs impact strategic decisions. The following discussion will delve into specific examples of defense spending efficiencies and their implications for military operations and personnel management. This exploration will highlight where nations can optimize resources while ensuring robust defense capabilities.
What Are the Components of Military Costs in Defense Spending?
Military costs in defense spending consist of various components that finance military operations, personnel, and equipment.
- Personnel Costs
- Operations and Maintenance
- Procurement
- Research and Development
- Military Construction
- Family Housing
- Veterans Affairs
The components outlined above provide a comprehensive view of military costs. These costs are essential for maintaining a nation’s defense capabilities, but they can also spark debate on resource allocation and priorities.
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Personnel Costs:
Personnel costs represent the salaries, benefits, and allowances paid to military service members. This category includes active duty and reserve component pay, bonuses, health care, retirement pensions, and other benefits. According to the Department of Defense (DoD), personnel costs accounted for approximately 30% of the total defense budget in 2022. The increasing number of veterans and their associated benefits has further driven these expenses. For example, the National Defense Authorization Act (NDAA) of 2022 introduced a 2.7% pay raise for service members to address rising living costs. -
Operations and Maintenance:
Operations and maintenance costs cover day-to-day military activities. These costs support training, logistical support, and equipment upkeep. The DoD allocated roughly 50% of its budget to operations and maintenance in 2022. This category enables military readiness, allowing forces to be prepared for immediate deployment. Efforts to reduce waste and improve efficiency have emerged as significant goals within this sector. -
Procurement:
Procurement costs involve the acquisition of new military equipment and supplies, such as aircraft, vehicles, and weaponry. This component accounts for a substantial portion of defense budgets, with the DoD spending about 20% on procurement in recent years. Significant procurement programs include the F-35 Joint Strike Fighter and the Navy’s new Gerald R. Ford-class aircraft carriers. Critics argue that overly expensive contracts can divert funds from other critical areas within defense spending. -
Research and Development:
Research and development (R&D) costs finance the innovation and advancement of military technology. This area is crucial for maintaining a technological edge over adversaries. In 2022, about 5% of the defense budget went toward R&D efforts. Investments in projects like artificial intelligence, cybersecurity, and advanced weaponry are examples of R&D expenditures. Some experts suggest that increased R&D spending can help the military adapt to modern threats. -
Military Construction:
Military construction costs entail the funding for building or upgrading military facilities, such as bases, barracks, and training ranges. These projects ensure that the military infrastructure meets the demands of modern operations. Although a smaller percentage of the overall budget, military construction is essential for sustaining long-term readiness. In 2022, around 5% of the defense budget was allocated to these efforts. -
Family Housing:
Family housing costs relate to providing safe and adequate living accommodations for military personnel and their families. These expenses are vital for maintaining morale and readiness among service members. Approximately 2% of the defense budget is allocated to housing expenses. Ensuring that families are supported can contribute to better recruitment and retention rates within the armed forces. -
Veterans Affairs:
Veterans Affairs (VA) costs cover the care and benefits provided to veterans after their military service. This category includes health care, education benefits, and disability compensation. VA spending continues to grow due to the aging veteran population and increased demands for services. In recent years, some have raised concerns about the adequacy of funding for veterans, leading to calls for reforms and increased support.
In conclusion, understanding the components of military costs in defense spending provides insight into how nations allocate resources for national security. These costs are essential to maintaining a capable and effective military force.
How Much Is Spent on Equipment and Supplies in the Military?
The military spends substantial amounts on equipment and supplies, with annual budgets typically exceeding hundreds of billions of dollars. In the United States, for example, the Department of Defense (DoD) allocated approximately $174 billion for equipment and supplies in fiscal year 2022. This represented about 25% of the total defense budget.
A breakdown of spending includes several categories. Major weapon systems, such as aircraft, ships, and vehicles, account for a significant portion. For instance, in fiscal year 2022, the Air Force budget for aircraft procurement alone was around $28 billion. Additionally, logistical supplies, including ammunition and maintenance parts, contribute nearly $15 billion.
Real-world scenarios help illustrate this spending. The recent purchase of fighter jets and naval vessels demonstrates investment in modernization. In particular, the DoD’s focus on upgrading munitions is evident in the increased budget for ammunition from $1.57 billion in fiscal year 2021 to $1.8 billion in fiscal year 2023.
Factors influencing these expenditures include geopolitical tensions, technological advancements, and inflation. Current conflicts and security concerns lead to increased demand for advanced military capabilities and readiness. Additionally, supply chain disruptions can lead to increased costs for materials and production, further impacting overall spending on equipment.
In summary, the military’s investment in equipment and supplies is substantial, driven by various factors including procurement for modern warfare and logistical demands. Analysts should consider fluctuations in spending due to external factors like global security dynamics and technological progress. Future exploration might focus on how shifting budgets impact readiness and operational efficiency.
What Are the Costs Involved in Military Research and Development?
The costs involved in military research and development (R&D) are multifaceted and can be significant. These costs include various financial allocations for technology, innovation, and personnel dedicated to enhancing military capabilities.
- Personnel Salaries and Benefits
- Technology Acquisition and Integration
- Testing and Evaluation Expenses
- Infrastructure and Facilities Maintenance
- Research Partnerships and Collaborations
- Regulatory Compliance Costs
- Logistical and Supply Chain Expenses
Understanding these costs involves analyzing how they impact overall military effectiveness and national security.
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Personnel Salaries and Benefits:
Personnel salaries and benefits form a substantial portion of military R&D costs. These expenses cover salaries for researchers, engineers, and support staff involved in developing new technologies. According to a 2022 Department of Defense report, personnel costs account for roughly 30% of total military R&D budgets. The high demand for skilled professionals in engineering and technology further elevates these costs. -
Technology Acquisition and Integration:
Technology acquisition and integration are crucial for the development of new military capabilities. This involves purchasing advanced systems, software, and hardware to enhance operational effectiveness. For example, the U.S. military spent over $9 billion in 2021 on advanced fighter jets under the F-35 program. Integration costs also involve adapting these technologies to existing systems, which can be high due to complexity. -
Testing and Evaluation Expenses:
Testing and evaluation expenses ensure that new technologies meet operational and safety standards. Comprehensive testing requires resources for simulations, field tests, and quality assurance protocols. The Government Accountability Office reported in 2023 that these costs can consume up to 25% of R&D budgets for advanced systems due to the rigorous testing needed to mitigate risk. -
Infrastructure and Facilities Maintenance:
Infrastructure and facilities maintenance are ongoing costs associated with operating research laboratories and testing grounds. These costs cover utilities, equipment upkeep, and facility upgrades necessary for efficient operation. According to a 2020 analysis by the RAND Corporation, maintaining military research facilities can cost upwards of $1 billion annually. -
Research Partnerships and Collaborations:
Research partnerships and collaborations play an essential role in military innovation. The military often collaborates with private industries and academic institutions to leverage expertise and share costs. These partnerships can involve joint funding which increases overall R&D investment. A 2021 study by the Defense Innovation Unit found that such collaborations boosted R&D efficiency by 40% while spreading financial burdens. -
Regulatory Compliance Costs:
Regulatory compliance costs involve following national and international laws related to defense technologies. Compliance with export controls, environmental regulations, and safety standards can add significant overhead to military R&D. The Department of Defense estimates that compliance can account for as much as 10% of R&D budgets. -
Logistical and Supply Chain Expenses:
Logistical and supply chain expenses are necessary for transporting materials and technologies required for military R&D. These costs include shipping, warehousing, and inventory management. The military’s logistics costs for R&D can be substantial, with estimates suggesting they consume about 15% of associated budgets, especially during large-scale projects.
Understanding these factors provides insight into the significant investments nations make in military research and development and the implications for national security and technological advancement.
How Much Funding Is Allocated for Military Operations and Maintenance?
The United States allocates approximately $1.1 trillion for military operations and maintenance in its annual defense budget. This figure generally represents around 30-35% of the total defense budget, which varies each year based on policy decisions, troop deployments, and global security needs.
Operations and maintenance can be broken down into several categories:
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Personnel Costs: This includes salaries, benefits, training, and allowances for military and civilian personnel. About 50% of operations and maintenance funding goes here, reflecting the priority given to human resources.
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Maintenance of Equipment and Facilities: This costs includes upkeep of vehicles, aircraft, ships, and military bases. Roughly 25% of the budget for operations and maintenance is dedicated to this area, reflecting the importance of ensuring readiness and longevity of military assets.
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Operational Readiness: This category covers the costs associated with training exercises, logistics, and deployment operations, accounting for about 20% of the total allocation. This funding is crucial for preparing forces for engagement and ensuring effective operations.
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Support Services: This encompasses services like medical care, housing, and other support functions, making up the remaining 5% of the operations and maintenance budget.
Variations in funding can occur due to external factors such as geopolitical conflicts, economic conditions, and technological advancements. For example, military readiness may require increased funding during times of heightened global tensions or conflicts, impacting allocation percentages.
In 2022, for instance, the Department of Defense increased its operations and maintenance budget by 5% to address various readiness concerns and to invest in modernizing equipment following assessments of threats.
In conclusion, military operations and maintenance funding is a critical component of the defense budget, accounting for roughly $1.1 trillion. This budget ensures that personnel are adequately supported, equipment is maintained, and forces are operationally ready. Future considerations include evaluating how evolving global threats and technological changes may affect future funding allocations.
What Is the Distribution of Personnel Expenses in the Military?
The distribution of personnel expenses in the military refers to the allocation of financial resources for salaries, benefits, and related costs for military personnel. According to the U.S. Department of Defense (DoD), personnel expenses constitute a significant portion of military budgets, encompassing active duty, reserve, and civilian staffing costs.
The DoD provides detailed budget reports that outline the division of military expenditures. Their fiscal documentation indicates that personnel costs are often the largest segment of the defense budget. This data is essential for understanding military expenditures and overall resource management.
Personnel expenses cover various aspects, including salaries, health care, retirement benefits, and training costs. These expenses aim to maintain a ready and capable military force. Ensuring competitive compensation and benefits is crucial for recruitment and retention of qualified personnel.
The Congressional Budget Office (CBO) notes that military compensation plays a critical role in overall operational effectiveness and morale. For instance, competitive salaries and comprehensive health care encourage families to remain with the service.
Several factors contribute to rising personnel expenses, including increased health care costs, expanded benefits, and recruitment incentives. Legislative changes often influence compensation structures, further impacting budget allocations.
In 2022, personnel expenses reached approximately $200 billion, accounting for about 29% of the total defense budget, as reported by the DoD. Projections indicate that these costs may rise due to inflation and demographic changes.
High personnel expenses can strain other military operations. More funds allocated to personnel may limit investment in equipment and technology, affecting overall readiness and capabilities.
The impact of personnel expenses extends to societal dimensions as well. A well-compensated military force can lead to improved family welfare and community support, but excessive costs may necessitate cuts in other essential services.
Potential solutions include optimizing human resource management in defense structures, reviewing benefit packages, and implementing technology to streamline operations. Recommendations from military analysts suggest regular assessments of personnel policies to ensure efficiency.
Strategies like implementing data analytics for budgeting, improving retention rates through enhanced training, and exploring public-private partnerships can help mitigate personnel expense increases. These measures can ultimately sustain operational readiness while managing costs effectively.
How Do Salaries and Wages Factor into Military Personnel Expenses?
Salaries and wages significantly impact military personnel expenses as they constitute a large portion of the budget allocated for defense operations. These expenses can be understood through key points which detail their contributions.
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Personnel Costs: Salaries and wages represent the primary component of military personnel costs. For instance, the Department of Defense (DoD) reported that personnel costs accounted for 40% of the total defense budget in FY 2021 (DoD, 2022).
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Pay Structure: The military utilizes a pay structure based on rank and years of service. This structure ensures consistent compensation. For example, enlisted personnel and officers receive different base pay rates that increase with promotions and experience.
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Benefits: Military salaries come with additional benefits, including housing allowances, health care, and retirement plans. These benefits increase the overall expense associated with each service member. A report by the Congressional Budget Office (CBO) in 2020 noted that benefits can add up to 30% on top of salaries for active-duty personnel (CBO, 2020).
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Force Size: The number of active-duty and reserve personnel directly affects salary expenses. Larger forces require more budget allocation for salaries. The size of the military force fluctuates based on strategic needs, training requirements, and international commitments.
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Budget Allocation: Salaries and wages must be balanced with other defense expenditures such as equipment, operations, and training. This necessitates careful budget planning by the military to ensure adequate funding for all essential areas.
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Economic Factors: Changes in economic conditions, such as inflation and cost of living adjustments, can influence military pay rates. High inflation periods may prompt the DoD to increase salaries to maintain service members’ purchasing power.
Understanding these points illustrates how salaries and wages shape military personnel expenses and impact the overall defense budget.
What Benefits and Allowances Are Provided to Military Personnel?
Military personnel receive a range of benefits and allowances that support their service and transition into civilian life. These benefits can enhance their quality of life and provide financial security.
- Base Pay
- Housing Allowance
- Food Allowance
- Health Benefits
- Education Benefits
- Retirement and Pension Plans
- Special Duty Pay
- Family Support Programs
- Disability Compensation
- Transition Assistance Programs
These benefits reflect the commitment to support military personnel and their families. However, opinions vary on the adequacy and accessibility of these programs.
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Base Pay:
Base pay is the foundational salary service members receive for their duties. It varies according to rank and years of service. The Department of Defense adjusts it annually, considering factors like inflation. Base salaries range from about $1,600 per month for entry-level personnel to over $20,000 for high-ranking officers, as per military pay charts. -
Housing Allowance:
Housing allowance supports members who do not live in government quarters. It helps cover rent or mortgage expenses. The amount depends on location, rank, and dependency status. According to the Defense Travel Management Office, this assistance aims to ensure that military personnel can find adequate housing without financial strain. -
Food Allowance:
Food allowance, known as Basic Allowance for Subsistence (BAS), provides funding for meal expenses. Service members receive this allowance monthly, which varies by whether they are enlisted or officers. According to the Defense Finance and Accounting Service (DFAS), BAS helps maintain the nutrition necessary for operational readiness. -
Health Benefits:
Military personnel and their families have access to comprehensive health care through TRICARE. This program covers medical, dental, and mental health services. Eligible beneficiaries can choose from various plans based on their needs. The Department of Defense emphasizes that access to health care is crucial for service members’ well-being. -
Education Benefits:
Education benefits, such as the Post-9/11 GI Bill, assist members seeking higher education. This includes tuition coverage, housing stipends, and a book allowance. Reports show that since its inception, millions of veterans have utilized this program, allowing many to pursue college degrees and vocational training. -
Retirement and Pension Plans:
Military personnel are eligible for retirement benefits after 20 years of service. These benefits generally include a pension based on the service member’s salary and time served. Studies indicate that this pension plays a significant role in the financial security of retired personnel. -
Special Duty Pay:
Special duty pay rewards service members who take on additional responsibilities or hazardous assignments. This includes roles like pilots, medics, and those deployed in combat zones. The amount and eligibility criteria for this pay vary by duty type and situation. -
Family Support Programs:
Family support programs are designed to help military families cope with separations due to deployment. The Department of Defense offers services such as counseling, career assistance, and resource centers. These programs aim to maintain family resilience during stressful times. -
Disability Compensation:
Disability compensation is available for service members injured or become ill due to military service. This financial support is tax-free and based on the severity of disabilities determined by the Department of Veterans Affairs. Various studies link this compensation to improved quality of life for veterans facing health challenges. -
Transition Assistance Programs:
Transition assistance programs prepare service members for civilian life. These programs provide resume writing, job interviewing skills, and job search resources. Data shows that with these programs, veterans successfully secure employment after service, helping bridge the gap into civilian work.
In conclusion, military personnel enjoy a variety of benefits and allowances structured to support them during and after their service. These provisions recognize their sacrifices and aim to provide stability for them and their families.
How Significant Are Health Care Costs in Overall Military Personnel Expenses?
Health care costs are highly significant in overall military personnel expenses. These costs primarily include medical services, health insurance, and long-term care for service members and their families.
First, we recognize that military personnel expenses encompass salaries, benefits, training, and health care. Among these, health care represents a substantial portion of the budget. In fact, health care costs account for around 10 to 15 percent of total military personnel expenses.
Next, we examine why health care expenditures are so significant. The military provides comprehensive health coverage to active-duty members, veterans, and their dependents. This expansive coverage leads to increased overall costs. Factors such as aging service members, rising medical costs, and advancements in treatment contribute to the growth of health care expenses.
Furthermore, we compare health care costs with other components of personnel expenses. Salaries make up the largest share, but health care costs follow closely behind. This ranking highlights the importance of managing these expenses to ensure financial sustainability for military budgets.
In summary, health care costs play a critical role in military personnel expenses. They represent a substantial financial commitment that reflects the importance placed on the health and well-being of service members and their families. Understanding this significance helps in the analysis and planning of military budgets.
What Are the Broader Economic Implications of Military Costs?
The broader economic implications of military costs include effects on government spending, opportunities for job creation, shifts in resource allocation, and impacts on international relations.
- Government Spending Impact
- Job Creation Opportunities
- Resource Allocation Shifts
- International Relations Effects
The discussion of military costs leads us to explore these implications in greater detail.
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Government Spending Impact: Military costs significantly affect government spending priorities. High defense budgets can limit funds available for education, healthcare, and infrastructure. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached $2 trillion in 2020, diverting resources from domestic programs. For example, in the U.S., the military budget was $732 billion in FY 2021, an increase that raised concerns over cuts to social services, as stated by the Center on Budget and Policy Priorities.
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Job Creation Opportunities: Military spending can stimulate job creation in defense industries and related sectors. The defense sector often creates manufacturing jobs and provides economic stability in regions with military bases. The Aerospace Industries Association reported that every $1 billion in defense spending supports approximately 7,600 jobs in the U.S. However, critics argue that these jobs may create a dependency on military spending, potentially hindering innovation in civilian sectors.
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Resource Allocation Shifts: The emphasis on military funding impacts resource allocation within the economy. Higher military costs can lead to reduced investment in critical areas such as renewable energy and education. For instance, the Global Peace Index suggests that nations investing heavily in military capacity might neglect issues like climate change or public health. This shift can affect long-term sustainability and economic growth.
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International Relations Effects: Military costs influence foreign policy and international relationships. High military spending can lead to arms races or aggressive postures, affecting global stability. Research from the RAND Corporation indicates that increased defense expenditures can lead to militarized relationships with neighboring countries. Conversely, investing in diplomacy and international aid may foster peace and cooperation, offering alternative strategies for nations to achieve security without escalating military expenditures.
In summary, military costs shape various economic dimensions, influencing government spending, job markets, resource distribution, and international dynamics.
How Do Military Costs Influence National Budgets and Economic Strategies?
Military costs significantly influence national budgets and economic strategies by necessitating substantial government expenditures that can impact social programs, infrastructure, and overall economic health.
Firstly, military spending comprises a significant portion of national budgets. For example, according to the Stockholm International Peace Research Institute (SIPRI, 2021), global military expenditure reached approximately $2 trillion, with many nations allocating over 3% of their GDP to defense. This allocation restricts funding for essential services like education and healthcare.
Secondly, high military costs limit investment in domestic priorities. Countries prioritizing defense may curtail funding in areas such as infrastructure, which is critical for economic growth. A study by the Center for Strategic and Budgetary Assessments (CSBA, 2020) revealed that a 10% increase in defense spending in the U.S. could reduce social service funding by up to $50 billion.
Thirdly, military expenditures can stimulate certain sectors of the economy while potentially neglecting others. The defense industry creates jobs and drives technological advancements, contributing to economic development. However, according to economist Robert Pollin (2019), military spending often does not provide the same return on investment as spending on education or renewable energy.
Additionally, international obligations and alliances can influence military spending. Countries may increase defense budgets to meet NATO’s target of 2% of GDP, as noted by NATO (2022). This can lead to strained budgets, as nations balance defense commitments with domestic needs.
Lastly, the opportunity costs of military spending can hinder long-term economic strategies. Resources directed towards the military could otherwise support innovation, infrastructure, and green technologies. The International Monetary Fund (IMF, 2022) highlighted that reallocating a portion of military spending toward social programs could enhance economic stability and growth.
In summary, military costs shape national budgets and economic strategies by impacting government spending priorities, economic growth potential, and the overall allocation of resources within a nation.
What Are the Societal Effects of Increased Military Spending Over Time?
Increased military spending over time can lead to significant societal effects, both positive and negative. These effects often influence economic stability, social cohesion, and public welfare.
- Economic Growth
- Opportunity Cost
- Social Inequality
- Public Health and Education
- Political Influence and Militarization
These points reflect various perspectives and can lead to differing opinions. Some view increased military spending as a tool for national security and economic growth, while others see it as detracting from essential public services.
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Economic Growth:
Increased military spending contributes to economic growth. It creates jobs in defense industries, which can lower unemployment rates. According to the National Defense Industrial Association (NDIA), defense spending creates direct and indirect jobs in various sectors, stimulating local economies. For example, the 2019 report highlighted that military contracts have generated approximately 2.5 million jobs nationwide. -
Opportunity Cost:
Opportunity cost refers to what society forgoes when funds are allocated to military spending instead of social programs. As military budgets grow, funding for education, healthcare, and infrastructure may decline. The Center for Budget and Policy Priorities (CBPP) reported that a $300 billion increase in defense spending could result in reductions in domestic programs impacting millions of citizens. -
Social Inequality:
Increased military spending can exacerbate social inequality. Wealthier communities often experience greater military investment, leading to disparities in resources available for social services. In contrast, low-income areas might see diminished funding for education and infrastructure. The Economic Policy Institute (EPI) noted in a 2020 report that this trend could widen the wealth gap. -
Public Health and Education:
Military spending may detract from investment in public health and education systems. Funds used for military ventures often reduce the budget available for healthcare programs and schools. Public health experts argue that without adequate funding, outcomes such as disease prevention and educational attainment suffer. Studies by the World Health Organization (WHO) link improved health spending to greater overall societal productivity and growth. -
Political Influence and Militarization:
Increased military spending can lead to greater political influence of defense contractors. This relationship may create a military-industrial complex where policies favor military solutions over diplomatic ones. Former President Dwight D. Eisenhower warned against this trend, emphasizing the need for balance in national priorities. The ongoing debates about the U.S. defense budget illustrate how military interests can overshadow other critical social needs.
In conclusion, increased military spending generates diverse effects on society. While advocates often point to economic growth and national security, critics highlight opportunity costs, social inequalities, and impacts on public health and education.
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