Lee Fang on December 24, 2012 – 11:44 AM ET
Last year, shortly after the shooting of then-Congresswoman Gabby Giffords, a financial analyst asked Mike Fifer—CEO of one of the largest gun companies in America—if the incident would lead to a wave of new gun sales. “The commentary from the NRA that President Obama might be coming out with some sort of speech on some sort of gun control,” asked the analyst, “has that stirred gun owners and prospective gun owners to go visit the stores?”
Gun companies, like almost any profit-driven enterprise, must keep pace with investor demands. Unlike most consumer businesses, however, people generally only need to buy their product once. Guns are very durable, and a well-maintained one can last a lifetime.
That’s where the National Rifle Association comes in.
NRA-stoked fear about the government coming to seize America’s guns has been a useful marketing tool to the gun industry, which must continually encourage gun-owners to buy more and more weapons.
This dynamic drives rather macabre incentives. Horrific gun violence leads to calls for gun control, which in turn leads to NRA-organized fear-mongering and conspiracy theories that inevitably results in more gun sales. What the financial analyst pondered last year with the Giffords shooting is playing out with Newtown—and the NRA and the gun industry is earning what is likely to be an unprecedented fortune.
While pundits and politicians debate the possibility of new gun restrictions in the wake of the Newtown massacre, the NRA is playing it’s now-familiar role spreading paranoia, and Americans are flocking to stores to stock up on weapons—lots of them.
From Alaska to Florida, gun sales across the country are going through the roof,