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Yes, you Facebook Chowderhead, the ammunition companies are deliberately choking production to reduce supply JUST to fuck you over.
It's people like you that prove, every day, that economics isn't being taught in schools.
What's worse, you fucking asked what incentive the ammo makers had in expanding production. I tried to explain.
But I'll do it in more detail here.
When supply goes down against demand, prices go up.
If the supply is exhausted before the demand is satisfied, you can increase the supply without affecting the price much.
What that means is choking the supply in the face of unmet demand is leaving money on the table, giving an incentive to stop choking the supply and make more money meeting the demand.
The real reason that ammo makers aren't rushing to expand production is the demand bubbles last just long enough to fuck anyone who's expanded production to meet an artificial demand spike. It's happened before.
But I think we've moved to a place where there's a large enough increase in the demand that it will remain much higher than the historical norms and expanding production will be justified.
Yeah, Facebook Chowderhead doesn't seem to understand that a heck of a lot of ammunition is still being made on legacy machines that are paid for.
ReplyDeleteAnd new machines are downright expensive, with lead times measured in years.
So even if, say, BubbaGunWurks wants to increase production, BGW doesn't have the cash on hand to pay for said machine, and the banks won't lend them money because, as you said above, the supply and demand varies too much or the bank doesn't want to fund gun companies or a combination of both. And even if they do have the scratch for machines, plunking down money now for a machine two years from now isn't really great business sense, especially considering what the current Reichs Chancellor is attempting to do against all gun things.
I wonder what the lead times are for obtaining enough lead to increase ammunition production.
DeleteAmmo makers are reluctant to make investments to increase production because they are worried given the current political climate that gun bans and increased litigation against anyone in the firearms industry, and other things that will ruin their business are on the horizon. The Democrats have now essentially succeeded in making sure that they can cheat on every future national election to guarantee that they will continue to control the White House and both houses of Congress in perpetuity and they also have a 5-4 liberal majority in the Supreme Court. It is only a matter of time before they ramrod through their Maoist/Stalinst agenda. After they commit election fraud in the midterm elections significant enough to create unassailable majorities in both the House and Senate, Biden or Harris will be free to issue any executive order decrees they want if Congress doesn't just enact wide spread bans and other restrictions. And SCOTUS will sit by and let it happen.
ReplyDeleteThere are bottlenecks in everything. As the ammo dried up the first component to follow was primers.
ReplyDeleteIt is almost impossible to get primers and when you do find them the are very expensive. Pre panic they were $0.03each. today $0.20/ea or more.
And while you can setup loading facilities pretty easily, primers are hard and dangerous.
I'm hearing copper shortages which means brass shortages.
Powder is starting to flow again but not primers.
I know people that sold 100 packs of primers for $10 each and are kicking themselves today because they could have gotten $20.
They sold because they needed to feed their families.
And now Biden has banned ammo from Russia.
ReplyDeleteA one year ban that won't take effect until the last approved Form 6 is used up.
DeleteTwo years from now.
That's a hell of a lead time for anyone else to get their butts to producing.
It might even be enough time for the Russians to set up shop in another country.