Your Opinion: Ironically, Obama aids firearms industry
Tuesday, February 12, 2013
The policies of Obama and the Democrats have boosted one area of the economy, even though I doubt that any of the stimulus money went to this sector of the economy. I recently found a receipt for some ammunition I purchased in October 2008.
I paid $12.79 for a 50 round box of 9x18’s. Today’s price for the same product, from the same vendor, is $18.52. A 46 percent increase. Even at that price the product is out of stock.
I paid $15.09 for a 50 round box of FMJ .357s. Today’s price for the same product, from the same vendor, is $28.35. An 88 percent increase. Again, can’t actually purchase any for even this price because they are out of stock.
I paid $20.03 for a 525 count box of Federal .22 long rifle shells. The closest product the vendor now has is a 325 count box of CCI .22 long rifle shells. Price is $25.70, an 80 percent increase. Once again, none in stock. The vendor does have some 50 round boxes in stock. The price is $16.06, a price increase of 842 percent per round.
I paid $12.56 for a 25 round box of Federal .410 shells. Today’s price from the same vendor is $14.32. Only a 14 percent increase, and he actually has some in stock.
The growth the sales volume for the US small ammunition manufacturing business sector is interesting. According to the census.gov web site: In 2007 small ammo mfg’s had a payroll of $472 million and they shipped $2,339 million worth of product. By 2011, the latest statistics I could find, their payroll had grown to $562 million and they shipped a whopping $3,397 million worth of product.
Those who invested in arms manufacturers when he became president, should be thanking Mr. Obama. According to a recent column by George Will, four years ago Smith & Wesson stock was selling for $2.45/share, it is currently selling for $8.76/share. Four years ago Sturm Ruger stock was $6.46/share, it is now $51.09/share. The DOW Jones Industrial has increased about 30 percent over the past four years.
An investment in these firearms manufacturers would have netted an investor a return of 671 percent.