the economy as a whole, Uilitary expenditures generate inflationary Pressures through severe bottle-necks and sharp price rises ln selected areas of miLitary manufacturing, which subsequently increases costs and prtces further up the manufacturing chain and through the de(Dnstration effec! of wage increases in military-related inatustries on other industries. TYpically, mll ita ry-r ela ted industries belong to the so-called wage leaders, i.e., industries that pay relatively high \.rages and lead in tshe periodic rounds of ltage-ba rga ining in different industries. In adtlition, governmentg often final it more feasible bo finance increased military expenditures tbrough inflationary increages in the money suppLy in the absence of sufficient tax revenues. 2. Military research and development 3BB. A large amount of the worldrs 11Ds! hlghly siilled labour and other resources have been used for military research and development to support the so-called "technological" arms race since the Second vlorld war. Indee'I, one of the most conspicuous features of the mil-itary scene has been an extraordinarily rapid rate of technological change in weapon systems. In virtually all categories of major weapons a compleeeLy new model is introduced. on the average' every 5 to I years, and the variety of weapons in which tbis process occurs has also expanded continuously, as technological developments have encouraged greAter product differentiation or permitted greater functional sPecialization a (Krng weapons (see A/36/356, annex, para. I47). 389. In 1980, global expendi.tures on military research and developmenc were roughly $35 billion or approxlmately one quarter of the estimated $I50 billion spent for a1l research and developrnent (see A/36/356' annex, para. 148). Approximately 20 per cent of the worldts qualified scientlsts and engineers, some 400.000 bo 500,000 people, were engaged in military research and development activities during the l9?0s (see A/36/356, annex' para. 149). The average military product has been
**Analysis**
The text primarily focuses on the economic aspects of military expenditures, specifically the impact on the economy, research and development, and the allocation of resources. It discusses the inflationary pressures generated by military spending, the allocation of highly skilled labor and resources, and the technological advancements in weapon systems. These themes suggest that the text is closely related to economic issues, particularly industry and science and technology.

**Category**
Industry, Science and technology