Monday, February 17, 2014

Celebrating "Stimulus"

Today is the 5th anniversary of the President's monetary stimulus, but at TOC we're celebrating the only Obama stimulus that actually worked.

It created jobs, boosted private sector manufacturing and encouraged people to appreciate the Bill of Rights. Of course, none of that was intentional.

It's tapering now, but the results are still far above pre-stimulus levels. CNN would have you believe otherwise in their headline, Gun sales are plunging, but the real story is a bit different:
Gun sales are dropping this year, according to FBI stats, but they still exceed sales from before Obama's reelection and the Newtown massacre…

Though gun sales have dropped from their peak last year, they're still outperforming monthly sales that preceded Obama's reelection, said Lawrence Keane, spokesman for the National Shooting Sports Foundation, the gun industry group based in Newtown.

For example, the tally of 1.66 million gun sales in January, 2014 is significantly higher than the 1.38 million sold in January, 2012.

"So we have come down from the peak but the valley floor is higher than before Nov 2012," said Keane, in an email to CNNMoney. "The consumer base has grown. This is because for the past few years, retailers tell us that about 25% of customers at the checkout counter are first-time buyers.”
There are only so many first time buyers, but I’m guessing many of them will eventually want another gun.

Ammo sales have also tapered off:
"Customers shifted away from ammunition more sharply than we expected," said Cabela's Chief Executive Officer Tommy Millner…
Maybe the prices will fall back, too.

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