You can’t argue with the facts, since President Obama took office back in 2008 gun manufacturing is up 140 percent, gun sales have hit record highs, and there are finally more guns in America than people. This boon in weapon manufacturing and sales is being appropriately coined the “Obama effect”. This “Obama effect” can be seen in overall gun sells per month over the past 8 years. Starting with the election of 2008, we saw gun sells hit 1.1 million the first month after President Obama took office (which was a record at that time) 4 years later we saw sales in January 2013 hit 2 million.
What these spikes in gun sales prove is that government truly does have a huge effect on markets. Just the mere notion that guns might become harder to purchase has set the gun market afire. This assumption of decreased gun supply/availability causes buyer and sellers to react in ways contrary to normal market behavior. We see price gouging by the sellers, hoarding by buyers, and manufacturers struggling to keep up with the new demand. It goes without saying that we see the same effects in the ammunition industry.
Changing gears really quick. We all know America has a love affair with guns and in my opinion - rightly so. There are countless research papers and statistics showing that by arming citizens we see less crime. One major publication arguing this point is a book by John Lott titled “More Guns, Less Crime”. This book helps the reader better understand gun control and why governments are so involved, it also helps explain the effects of government policies on the gun market.
Ultimately, I don’t think gun sales will go anywhere but up. People’s fear of the future will continue to drive sales and manufacturing. With the upcoming election of Hillary Clinton as president I see no reason why the gun market will slow. I do think this must be a bittersweet moment for the gun makers and sellers as a whole. On one hand you have a president trying to put you out of business, yet on the other hand the mere fact that the president is trying to put you out of business is great for business.