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Cost of Living in the UK vs US: Compare Housing, Groceries, Taxes & More

By Betty
cost-of-living-uk-vs-us

Cost of living UK vs US is always a hot topic. Some people wonder which one has a higher cost of living, because both the UK and the US are home to plenty of top universities and great job opportunities. According to 2026 Numbeo data, the overall cost of living in the UK is around 1% to 6% lower than in the US, including rent. Housing costs in the UK are significantly more affordable, with average rent prices about 17% to 23% lower than in the United States. However, average salaries and local purchasing power are generally higher in the US, which can offset some of the higher living expenses for residents and international students. For students comparing study destinations, the UK may offer lower accommodation costs, while the US often provides stronger earning potential through higher average wages and broader job opportunities. In this article, we will focus on several aspects of comparison to provide a preference for those considering heading to these two countries for work or study.

United Kingdom vs United States: Where to Live?

Choosing the right city is one of the most important decisions when comparing cost of living UK vs US. Both countries offer excellent options, but the best choice depends on your priorities, whether it is career opportunities, affordability, quality of life, education, or work-life balance.

In the UK, cities outside London provide much better value. Edinburgh, Bristol, Manchester, and Cambridge are among the most popular choices in 2026, offering a good balance of job opportunities, cultural life, and more affordable housing compared to the capital. Edinburgh often ranks highest in quality of life thanks to its beautiful setting, strong universities, and vibrant atmosphere. Manchester stands out for tech and creative industries with relatively lower living costs.

In the United States, the choice is more varied due to the country’s size. New York City and San Francisco remain the most expensive and dynamic, ideal for finance and tech careers. However, many people in 2026 prefer mid-sized cities such as Austin, Raleigh, Denver, or Seattle for better affordability, strong job markets, and higher quality of life. Southern and Midwestern cities like Nashville and Charlotte are gaining popularity for their lower costs and growing economies.

Key considerations in 2026:

  • If you prioritize affordability and public transport, UK cities like Manchester or Edinburgh often win.
  • If you seek higher salaries and career growth, many US cities provide better opportunities despite higher rents.
  • For families and work-life balance, medium-sized cities in both countries tend to offer the best overall experience.
  • International students and workers should also consider visa policies and university locations when making their decision.

Ultimately, there is no single best city. It depends on your personal situation, career field, and lifestyle preferences.

Cost of Living in UK vs US: Accommodation

accommodation

Accommodation costs in the US are generally higher than in the UK, especially when it comes to renting. Housing is one of the biggest factors affecting the cost of living in both countries, and changes in accommodation prices often reflect broader economic conditions.

Although the UK and the US share similarities in language and culture, their housing markets are quite different. In the UK, London accommodation is the most expensive in the country, while cities such as Bristol and Edinburgh are also known for their high housing costs. The strong demand for student housing, limited space for new developments, and the preservation of historic buildings all contribute to rising accommodation prices across major UK cities.

In the United States, the housing market is more diverse and flexible. Accommodation prices can vary greatly even within the same city. For example, renting an apartment in New York City Centre is far more expensive than living in suburban areas outside the city. Students and residents often have more choices in terms of housing type, location, and budget.

According to the latest 2026 data, monthly rent prices in the US are around 21% to 33% higher than in the UK. However, buying property in the UK can be more expensive, with apartment prices per square meter averaging 32% to 36% higher than in the US.

For international students, the UK may offer lower rental costs overall, while the US provides a wider range of accommodation options depending on lifestyle and location.

When looking for student accommodation abroad, it is important to compare prices, locations, and what is included in the rent. Platforms like uhomes.com student accommodation search help students find and compare verified housing options in major study destinations. Students can browse listings near universities, compare different room types, and choose properties that fit their budget and needs. Many accommodations listed also offer all-inclusive rent options, and some provide a lowest price guarantee, helping students secure cost-effective housing while avoiding hidden fees and unexpected expenses.

Overall, using trusted student housing platforms can make it easier for international students to find safe, convenient, and affordable accommodation in both the UK and the US.

Accommodation TypesUnited KingdomUnited StatesDifference (US vs UK)
Monthly rent for 1 bedroom apartment (city center)£1,231 ($1,650)£1,493 ($2,000)+21.2%
Monthly rent for 1 bedroom apartment (outside center)£970 ($1,300)£1,231 ($1,650)+26.9%
Monthly rent for 3 bedroom apartment (city center)£2,015 ($2,700)£2,612 ($3,500)+29.6%
Monthly rent for 3 bedroom apartment (outside center)£1,567 ($2,100)£2,090 ($2,800)+33.3%
Price per square meter to buy apartment (city center)£5,597 ($7,500)£3,582 ($4,800)-36.0%
Price per square meter to buy apartment (outside center)£4,104 ($5,500)£2,761 ($3,700)-32.7%

Life Expenses in USA versus UK: Transport

Transport costs in the US are about 8% to 42% lower than in the UK across major categories. Transport expenses not only directly influence the economic burden of enterprises and individuals, but also profoundly affect the national economy, logistics efficiency and even international trade.

Because the UK and the US have their own characteristics in location, economy and population density, there are some significant differences in transport costs. The United States, with its vast territory, has a transport network dominated by highways and airways, while the United Kingdom is a nation consisting of several islands, with railways and roads as its core of transport. The United States has a well-developed highway system, while the United Kingdom has a long, dense and extensive railway network. In terms of energy prices, the United States benefits from its abundant oil resources with relatively low gasoline prices, while the United Kingdom is affected by the European energy market with relatively high oil prices. In addition, tax policy is also an important factor affecting transport costs in UK vs US. The United States has relatively low taxes on cars and fuels, while the United Kingdom has high taxes on cars and fuels.

These factors work together to make the transport costs in the UK and the US show different characteristics.

Transport typesUnited KingdomUnited StatesDifference (US vs UK)
Single bus ticket£2.24 (£3.00)£2.05 (£2.75)-8.3%
Monthly public transport ticket£63.43 (£85)£55.97 (£75)-11.8%
Petrol (1 liter)£1.57 (£2.10)£0.82 (£1.10)-47.6%
Volkswagen Golf£20,895 (£28,000)£19,776 (£26,500)-5.4%
Toyota Corolla£21,269 (£28,500)£18,284 (£24,500)-14.0%

Food & Grocery Prices in USA versus UK

food-and-groceries

US food and grocery prices are generally 10% to 60% higher than in the UK, especially for items like bread, chicken, and restaurant meals. Besides accommodation and transport, food and groceries are another crucial elements people may care about when they move into a new place. Their costs are not only related to people’s daily life, but also reflect the national economy, consumption habits and agricultural policies. The following section will compare food and grocery costs in the United Kingdom and the United States from several aspects to provide readers with a comprehensive perspective.

In the United States, agricultural products’ prices are relatively low, thanks to its large-scale agricultural production, advanced agricultural technology and efficient logistics system. And the competition in the restaurant industry is fierce, resulting in lower food prices. When it comes to the UK, as an island country, the price of agricultural products is greatly affected by climate and location. British consumers also have high food quality requirements, thus pushing up food prices.

In addition, tax policies, subsidy policies, food safety standards and other factors also have an impact on the cost of food in the UK and the US. The US government has a large subsidy to agriculture, which helps to reduce the price of agricultural products. In Britain, higher taxes on food processing and retailing have increased the cost of food. In terms of food safety standards, both the UK and the US attach great importance, but the UK’s standards are stricter, which may also lead to higher food prices.

Then, we will provide a table showing figures for some food and groceries, aiming to provide readers with a panoramic understanding of food and grocery expenses in the UK and the US.

Food typesUnited KingdomUnited StatesDifference (US vs UK)
Milk (1 liter)£1.08 (£1.45)£0.82 (£1.10)-24.1%
Bread (500g loaf)£1.34 (£1.80)£2.61 (£3.50)+94.4%
Eggs (12pk)£2.84 (£3.80)£3.36 (£4.50)+18.4%
Water (1.5 liter bottle)£1.04 (£1.40)£1.57 (£2.10)+50.0%
Chicken breast (1kg)£6.34 (£8.50)£10.07 (£13.50)+58.8%
Cappuccino (regular, in a restaurant)£3.13 (£4.20)£3.88 (£5.20)+23.8%
Beer (500ml, in a restaurant or pub)£4.10 (£5.50)£4.33 (£5.80)+5.5%

UK vs USA Living Cost: Utilities

The cost of utilities varies between the UK and the US, and these expenses are an important part of the overall cost of living for students and residents. Utility bills usually include electricity, heating, water, sewage services, and internet costs, especially in student accommodation.

For international students, choosing student accommodation with utility bills included can help reduce monthly living expenses and make budgeting easier. Many student properties listed on uhomes.com UK student accommodation include utility bills in the rent, covering essentials such as electricity, water, heating, and Wi-Fi. This all-inclusive accommodation option is popular among overseas students because it offers more predictable monthly costs and reduces the stress of managing separate utility payments.

In the United States, utility prices are influenced by regional differences, energy resources, market competition, and government policies. Thanks to abundant energy reserves and a competitive supplier market, US residents generally spend less on electricity and gas. Different utility providers also offer a variety of pricing plans, giving residents more flexibility and choice.

In contrast, utility costs in the UK are affected by both government policies and market conditions. The UK has invested heavily in renewable energy and energy transition projects in recent years, which has contributed to higher electricity and gas prices. Although the government provides subsidies and support for some households, basic utility costs in the UK are still around 55% higher on average than in the US.

By comparing utility costs in the UK and the US, international students can better understand the differences in living expenses and choose accommodation options that match their budget and lifestyle.

Utility types (monthly)United KingdomUnited StatesDifference (US vs UK)
Basic (electricity, heating, cooling, water, garbage) for 85 square meters apartment£254 (£340)£164 (£220)-35.3%
Mobile phone monthly plan with calls and 10GB+data£13.43 (£18)£44.78 (£60)+233.3%
Internet (60 mbps or more, unlimited data, cable/ADSL)£33.58 (£45)£55.97 (£75)+66.7%

Cost of Living in America vs UK: Healthcare

Healthcare costs in the US are dramatically higher, often 5 to 10 times more expensive than in the UK for major treatments. When it comes to cost of living America vs UK, healthcare cost has to be mentioned. Globally, the price of healthcare is not only an important indicator of a country’s economic development and people’s well-being, but also a key factor in measuring the perfection of its medical and health system.

The United Kingdom and the United States, the world’s two major economies, have different health systems: the United Kingdom adopts the National Health Service (NHS), while the United States has a mixed public-private health system, which is based on private insurance. Although there are significant differences between the two countries’ healthcare systems in how they deliver services and how they are funded, both face challenges in controlling healthcare costs and improving service quality. In this context, the contrast between UK and US health spending is fundamental.

Healthcare expenses in the United Kingdom come mainly from government taxes and cover almost all basic medical services, while healthcare costs in the United States are spread among the government, businesses and individuals, who bear relatively high medical costs. Here are some detailed comparisons of health spending between the two countries:

AdmissionUnited KingdomUnited StatesDifference (US vs UK)
Cancer related treatment (including chemotherapy)£26,119 (£35,000)£134,328 (£180,000)+414%
Gastric sleeve£8,955 (£12,000)£18,657 (£25,000)+108%
Breast reduction£5,224 (£7,000)£5,597 (£7,500)+7.1%
Broken bones£2,836 (£3,800)£2,239 (£3,000)-21.1%
Cornea surgery£2,612 (£3,500)£23,881 (£32,000)+814%
Optical surgery (per eye)£2,687 (£3,600)£3,358 (£4,500)+25%
Lung disease treatment£1,343 (£1,800)£6,343 (£8,500)+372%
CT scan£821 (£1,100)£2,836 (£3,800)+245%

Living Expenses in America vs UK: Childcare

Childcare is another important part of comparing cost of living in Britain vs US. Childcare costs are mixed — preschool is slightly more expensive in the UK, while international primary school is more expensive in the US. The levels and patterns of childcare expenses reflect a country’s social welfare system and emphasis on childhood education. The UK and the US have different policies and practices on childcare, reflecting their different social values and policy orientations.

The UK has long campaigned for a comprehensive childcare system to ease the financial burden on families and support parents, especially mothers, in returning to work. The UK government reduces the cost of childcare for families by providing tax incentives, subsidies and direct services such as nurseries and early learning centres. In addition, the UK has a dedicated national standard to ensure the quality and safety of childcare services.

By contrast, the US childcare system is more market-based, with a relatively minor role for the government. American families typically spend more on childcare, and the quality and availability of services vary by region and income level. Although the US government also provides some tax breaks and subsidy programs, the support is often insufficient to cover the total cost of childcare, resulting in many families having to shoulder a heavy financial burden.

Specifically, the UK spends a relatively high proportion of GDP on childcare, reflecting the government’s greater investment in childcare. Childcare expenses in the United States, while large in total, are relatively low as a percentage of GDP and unevenly distributed. This difference is not only reflected in the fiscal expenditures of the two governments, but also reflected in the economic pressure on families and social fairness.

The following part will provide a detailed comparison of childcare costs in the United Kingdom and the United States, aiming to provide insight into policy choices and trends in both countries. Through this comparison, we can better understand the economic, social and cultural factors behind childcare costs and how these factors have shaped the childcare systems in both countries.

Childcare typesUnited KingdomUnited StatesDifference (US vs UK)
Preschool (or kindergarten), full day, private, monthly for 1 child£1,343 (£1,800)£1,157 (£1,550)-13.9%
International primary school, yearly for 1 child£15,672 (£21,000)£18,657 (£25,000)+19.0%

Cost of Living in US vs UK: Higher Education

Many students who plan to study abroad will be concerned about the cost of living in America vs UK. Overall, students who study in the US spend more than those in the UK.

With their wonderful academic atmosphere, advanced educational concepts, rich and diverse curriculum and excellent teachers, the UK and the US attract countless students with dreams from all corners of the world. For instance, there are several top universities in the UK, like the University of Manchester, Imperial College London, University of Leeds, UCL and so on. As for the US, prestigious universities are also everywhere, such as MIT,Harvard University, Princeton University, etc. However, while embarking on this journey full of promise and challenges, students and their families face a crucial reality — the cost of higher education.

Education expenditure covers many aspects, from tuition to cost of living, from the availability of scholarships and grants to the expected return on the overall investment in education. For every student who aspires to pursue knowledge and shape their future, a clear understanding of the detailed comparison of spending in the UK and the US is undoubtedly an essential step in making informed decisions.

The following part will deeply analyze the details of university education expenses in the United Kingdom and the United States. A comprehensive comparison of tuition, cost of living, and other relevant factors provides a detailed, objective and practical reference for students who are standing at the crossroads of life and facing choices to help them pursue their academic dreams. Based on sufficient information and rational thinking, they can make the choice that best meets their own development needs and economic conditions.

Expenditure typeUnited KingdomUnited States
Average tuition fees yearly$12,780 – $56,280 (undergraduate) $8,040 – $50,920 (postgraduate)$11,950-45,000+ (undergraduate) $18,000-30,000 (postgraduate)
Average living expenses monthly$1,650 (London)$2,600 (New York)
length of schooling

3 years (undergraduate) 1-2 years (postgraduate)

4 years (undergraduate) 1-2 years (postgraduate)

Average Salaries in UK vs US

The median annual income in the United States is significantly higher than in the United Kingdom in 2026. Americans generally earn more across most professions, which helps offset higher living costs in many categories.

Overall Median Annual Income (2026)

CategoryUnited KingdomUnited StatesDifference (US vs UK)
Median Annual Income (full-time)£39,000 ($52,260)$63,500 (£47,388)+63%
Median Annual Income (all workers)£32,890 ($44,073)$51,800 (£38,657)+57%

Income Comparison by Popular Professions (2026)

ProfessionUnited KingdomUnited StatesDifference (US vs UK)
Software Engineer£55,000 – £75,000 ($73,700 – $100,500)$120,000 – $160,000 (£89,552 – £119,403)+80% ~ +120%
Doctor / Physician£80,000 – £120,000 ($107,200 – $160,800)$180,000 – $280,000 (£134,328 – £208,955)+90% ~ +130%
Registered Nurse£32,000 – £45,000 ($42,880 – $60,300)$75,000 – $95,000 (£55,970 – £70,896)+80% ~ +110%
Secondary School Teacher£32,000 – £48,000 ($42,880 – $64,320)$55,000 – $75,000 (£41,060 – £55,970)+50% ~ +70%
Finance / Investment Analyst£50,000 – £85,000 ($67,000 – $113,900)$95,000 – $150,000 (£70,896 – £111,940)+70% ~ +90%
Marketing Manager£45,000 – £65,000 ($60,300 – $87,100)$85,000 – $125,000 (£63,433 – £93,284)+70% ~ +95%

The United States offers substantially higher salaries in most skilled and professional fields, especially in technology, healthcare, and finance. However, the UK generally provides better work-life balance, more paid holiday (typically 25–30 days), and stronger social benefits.

When deciding between the two countries, it is important to consider not just raw salary, but also the overall cost of living, taxes, healthcare costs, and your personal lifestyle preferences.

Currencies of the UK and the US

The United Kingdom uses the British Pound Sterling (GBP), while the United States uses the US Dollar (USD). These two currencies are among the world’s most important and widely traded, playing a significant role in international business, education costs, and cost of living comparisons.

As of May 2026, the exchange rate is approximately 1 GBP = 1.34 – 1.35 USD. The average exchange rate in 2026 so far is around 1.347 USD per GBP. The GBP has shown moderate strength against the USD this year, fluctuating between roughly 1.318 (low in March) and 1.382 (high in January).

The US Dollar remains the world’s dominant reserve currency, supported by the size of the US economy and global demand. The British Pound, while slightly weaker in value per unit, is still one of the strongest major currencies globally and benefits from the UK’s financial hub status in London. When comparing cost of living, fluctuations in this exchange rate directly affect how expensive tuition, rent, and daily expenses appear to international students and workers converting their money between the two countries.

Cost of Living in UK vs US: Which One Is Cheaper?

To sum up, comparing UK vs US cost of living is a complicated work. Based on the above data, there are significant regional differences in accommodation in the UK and the US, so it is difficult to generalize which costs more. But in general, the British people spend more on transport than the Americans, while the Americans spend more on food and groceries than the British people. As for utilities, in addition to energy-related items, you have to spend more in the US. British people also spend less in healthcare. When it comes to education, both childcare and higher education spend more overall in the United States. In terms of overall purchasing power, higher US salaries often offset the higher costs in many categories. You can use the above data and analysis, as well as some other information, to determine your living budget.

The complexity of accommodation also makes it difficult to grasp the rental market in the UK and the US. Which city is better for you to live in? Where is the apartment with all the amenities you need? How can I rent a satisfying house at a lower price? These problems are very troubling. Enter uhomes.com now and let our professional team solve these problems for you, making renting no longer a problem!

FAQ

Although there are various kinds of accommodation, generally, people in the US cost more for rent than those in the UK.

Accommodation TypesUnited KingdomUnited StatesDifferences
Monthly rent for 1 bedroom apartment (city center)$1,650$2,000+21%
Monthly rent for 1 bedroom apartment (outside center)$1,300$1,650+27%
Monthly rent for 3 bedroom apartment (city center)$2,700$3,500+30%
Monthly rent for 3 bedroom apartment (outside center)$2,100$2,800+33%

However, it is tough to choose the right accommodation. You have to consider the price, transport around your apartment, amenities you should have, services you should receive and so on. Here we are! We can patiently answer your questions, and provide professional suggestions. So please contact us, uhomes.com, without hesitation, if you want to rent a satisfying apartment in an unfamiliar city.

According to Numbeo, people in the US earn more than those in the UK.

SalariesUnited KingdomUnited StatesDifferences
Average monthly net salaries (after tax)$3,300$4,800+45%

Although both the UK and the US apply progressive tax systems, the UK system has fewer brackets and a higher starting rate after personal allowances. The tax rates of the UK’s progressive tax structure span from 20% to 45%. In contrast, the federal tax rates in the US range from 10% to 37%.

Furthermore, the US levies taxes on the worldwide income of its citizens and residents, while the UK’s tax system is contingent upon an individual’s residence and domicile status.

In the UK, London is always the most expensive city to live in, while in the US, the cost of living is the highest in New York City or the San Francisco area.

Under the same circumstances, that is, assuming the individual’s professional background, language ability, work experience and other conditions are similar, there is still no absolute answer to the question of which country is better to find a job in the UK or the US, because each country has its own advantages. Here are some factors to consider for your reference:

United States:

  1. A nation of immigrants: The United States has historically been a nation of immigrants and is open to international talent.
  2. Size of economy: The United States is one of the largest economies in the world and provides a large number of jobs.
  3. Industry diversity: The United States has a strong strength in many fields, such as science and technology, finance, medical care, and law, and there are many employment options.
  4. Work visas: While the H-1B visa is highly competitive, the United States offers a variety of work visa categories, and some specific industries, such as technology, are in high demand for international talent.

United Kingdom:

  1. International Student Work Policy: The UK offers the Graduate visa, allowing most international students 2 years of work rights after completing their studies if they apply before 1 January 2027 (18 months thereafter for non-PhD students).
  2. Length advantage: Master’s programmes in the UK are typically one year long, which means students can enter the job market more quickly.
  3. Language environment: The UK provides a pure English working environment, which is directly helpful in improving English level and work skills.

Nonetheless, here are some additional factors to consider:

  1. Visa policy: The H-1B visa approval rate in the United States is not 100%, there is uncertainty, but although the United Kingdom provides PSW visas, it is also challenging to find a suitable job and convert to a work visa.
  2. Certain majors may have better job prospects in the UK, while others may be more popular in the US.
  3. Cost of living: The cost of living UK vs US varies from city to city.

Generally speaking, if all things are equal, the United States probably will provide more jobs because of its larger economy and diversity of industries. However, this does not mean that good jobs cannot be found in the UK, especially in certain industries or fields.

Mayfair and Kensington & Chelsea are currently the most expensive neighborhoods in London in 2026. These areas are famous for their luxury homes, historic charm, and high-end lifestyle. Properties here often cost millions of pounds, attracting wealthy residents, celebrities, and international buyers. Factors like proximity to parks, top schools, and exclusive shops drive the high prices.

  • Average property prices: Often exceed £5 million in Mayfair and over £1.2 million on average in Kensington & Chelsea.
  • Why so expensive? Central location, luxury amenities, and strong international demand.
  • Best for: High-income professionals and families seeking prestige.

Hudson Yards is the most expensive neighborhood in New York City in 2026. This modern development on Manhattan’s West Side features ultra-luxury skyscrapers, high-end shopping, and stunning views of the Hudson River.

  • Median home price: Around $4.6 million.
  • Why so expensive? New luxury buildings, excellent amenities, and strong demand from tech and finance professionals.
  • Other top contenders: TriBeCa, NoHo, and SoHo also rank very high.
  • Best for: Young professionals and families who want modern luxury living.

The average price per square foot for homes in the United States is approximately $227 in 2026. This is the national median listing price and varies greatly depending on the state and city.

  • High-cost areas: California and New York often exceed $400–$600 per sq ft.
  • More affordable areas: Midwest and South can be as low as $140–$180 per sq ft.
  • Tip for buyers: Always compare local prices, as location affects value much more than the national average.

Emigrating to the US from the UK offers higher salaries and more career opportunities, but comes with higher living costs and a different healthcare system. Americans generally earn more, but you will need to adjust to a more car-dependent lifestyle and private health insurance.

  • Higher salaries but much higher rent in big cities.
  • Healthcare: Expect to pay for private insurance — it’s expensive but fast.
  • Work culture: Longer hours but more chances for fast career growth.
  • Visa & paperwork: H-1B or other work visas can be competitive.

Emigrating to the UK from the US provides excellent public healthcare and a more relaxed work-life balance, but lower salaries and higher taxes. The NHS (National Health Service) is a big advantage, though housing in London is very competitive.

  • Better work-life balance with more vacation days.
  • Healthcare: Free or low-cost through the NHS.
  • Cost of living: Cheaper rent outside London, but salaries are generally lower.
  • Culture: Easier adaptation due to similar language, but smaller portion sizes and different humor.

It depends on your priorities — neither is universally better. The UK is often better for healthcare, work-life balance, and affordability outside major cities. The US is usually better for higher salaries, career growth, and diverse opportunities.

  • Choose UK if: You value free healthcare, shorter working hours, and easier travel in Europe.
  • Choose US if: You want higher earning potential and dynamic job markets.
  • Best advice: Consider your career field, family situation, and long-term goals.

People can live very well in both the US and UK, but “better” depends on what you value most. The US often provides higher income and more opportunities, while the UK offers better social safety nets and quality of life in many areas.

  • US advantages: Higher salaries, bigger homes, and more consumer choices.
  • UK advantages: Free healthcare, better public transport, and more paid vacation time.
  • Overall: Many people report higher life satisfaction in the UK due to balance, while others prefer the earning power and energy of the US.

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