Ammunition is in such short supply (at today’s prices) that police departments in east Texas are not able to buy it. Officers are not issued ammunition. They have to buy their own.
There is something strange with a market when any item becomes so scarce that rationing is required. Under normal circumstances, the manufacturer would simply hike prices in order to reduce demand and also increase profits. There is something abnormal with the price system in a particular line of production when an item is in such short supply that there are people lining up to buy it, and the stores that sell it have run out.
If I were in the ammunition manufacturing business, I would simply double the price of my product line. I would test it in order to see where the price point is at which demand is reduced, and profit is highest. it seems to me that the rational response to increased demand is increased prices.
For some reason, the ammunition industry is not responding in a way that I would regard as rational. The same thing is true of gun manufacturing. The manufacturers say that they are manufacturing guns at full capacity, yet there is still a shortage. People are lining up to buy guns and ammunition, and there seem to be more people who want to buy than who want to sell.
The restriction may be some sort of internal restraint of sellers, based on an unwillingness to anger the public. I cannot think of any other rational reason. Prices should keep going up until there are no more people out there who want to buy, and the people who want to sell, whether owners of used guns or sellers of new guns, are in a position to sell all that they can.
There has been a fundamental shift in the United States regarding gun ownership. People who want to buy are now in such a state of agitation that it is unlikely that we are going to go back to what I would call pre-Newtown conditions. There are such fears regarding the Senate and Obama, that the public forgets that the House can block any legislation. The public is convinced that the government is going to do whatever it can to keep gun owners from buying guns, and therefore buyers at the margin are finally loading up.
Reports coming from the industry indicate that people are coming into gun stores and buying three or four guns at a time. They walk out with $3,000-$4,000 worth of guns. In other words, one background check leads to the sale of 3 to 4 times as many guns as there are background checks.
This is good news. It means that the public has finally realized that the Democrats would like to confiscate the public’s guns, and the public is buying while they still can. This is going to make it ever more difficult for the gun-control advocates to get their legislation through Congress.