They also don't know if the increased demand is temporary.
Say you borrow $20 mill, build the new plant, and next year demand returns to normal. Now what you have is an unpaid loan and ammo you can't sell. So that's why they don't build the new capacity. The default play is to run the existing equipment on overtime, hire some new workers, start a third shift, etc, streamline your production. You can usually double your normal output with your existing capital equipment. You don't build the new plant as long as possible.
There were riots, so gun sales are up. People buy guns when they feel threatened. They had riots in the 1970's too. Bombings, etc. Revolution Vietnam love you long time. But then things calmed back down. Life sort of returned to normal under Reagan, and boom times under Clinton.
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