Gun industry eyes a sneaky and dangerous new revenue stream
Republicans hide a rollback on the regulation of gun silencers inside an otherwise innocuous federal lands bill
Donald Trump campaigned on the claim that he would be a law and order president, and the 2016 Republican platform called for more gratitude and support for law enforcement and expressed concern over the murder rate soaring in our great cities. (That last part, at least, was pretty much a fabrication.) Despite that high-minded rhetoric, congressional Republicans are pushing forward with a stealth bill that will make life easier for contract killers, and make it more dangerous for police to protect themselves from gun violence.
On Tuesday, the House Committee on Natural Resources will hear testimony about the innocuously titled Sportsmens Heritage and Recreational Enhancement Act (or SHARE Act), introduced by Rep. Jeff Duncan, a South Carolina Republican. Buried in the middle of a bunch of provisions regarding hunting and fishing on federal lands, however, is a provision that would roll back parts of an 80-year-old law passed in response to the St. Valentines Day massacre of 1929 that regulates the sale of firearm silencers.
Silencers distort the sound of a gun, and in the wrong hands, they put peoples safety at risk, John Feinblatt, president of Everytown for Gun Safety, explained to Salon.
Under the National Firearms Act of 1934, people who buy gun silencers must pay a $200 tax and go through a cumbersome registration process with the Bureau of Alcohol, Tobacco, Firearms and Explosives. When Trump won the election, the NRA made it a top priority to push for the end of these regulations. The campaign largely involved rebranding silencers as suppressors and arguing that they are necessary for firearm safety, because they supposedly protect peoples hearing during sport shooting.
Gun safety advocates argue, however, that silencers make it easier for criminals to operate and put the lives of police officers at risk. They also argue that the gun lobby has cynical motivations for wanting to get rid of silencer registration and taxes: Profit.
NRA leadership and their congressional allies are working behind closed doors to prop up lagging gun sales by making it easier for gun companies to sell silencers, Feinblatt argued, adding that the bills backers put profits ahead of public safety.
As Lois Beckett at the Guardian reported recently, American Outdoor Brands, which is the new name for the venerable gun manufacturer Smith & Wesson, recently acquired Gemtech, a company that sells silencers, anticipating the strong possibility that a Trump presidency would lead to deregulation of silencer sales.
We view this acquisition as somewhat opportunistic, allowing us to enter the suppressor category prior to the potential favorable changes in legislation and at a time when the market is particularly soft, American Outdoor Brands CEO James Debney said during a shareholder call last week.
Silencers are seen by the gun industry as a great way to recruit new customers, because the devices make guns less scary to children.
For new or younger shooters, using a silencer means being able to focus on marksmanship fundamentals and enjoy the overall shooting experience with considerably more comfort, the 2017 catalog for Advanced Armament Corporation explained.
Donald Trump Jr., who is a big fan of silencers, concurs. Last year, in a video interview with Joshua Waldron, the CEO of a silencer manufacturer, Don Jr. said that silencers were great at getting little kids into the game.
NRA leaders have argued that the name silencer is a misnomer, because the devices muffle but do not eliminate the sound of gunfire. In May, gun lobbyists invited reporters to a demonstration of guns fired with silencers, to show that one can still hear a firearms report. Chris Cox, the executive director of the NRAs lobbying efforts, argued that the movies distort peoples views of silencers, adding, Theyre not silent.
Poster Comment:
#1: Stoner To: Willie Green (#0)
Stoner posted on 2017-09-12 09:47:00 Reply Private Reply
#2: Tooconservative To: Willie Green (#0)
C'mon, 0bama was the greatest gun salesman in the history of mankind.
As soon as Hitlery lost the election, gun sales dropped across the board, judging by the drop in background checks.
Big corporations of any kind don't just do nothing when their revenue stream evaporates. They try to find new ways to make money.
Tooconservative posted on 2017-09-12 12:09:27 Reply Private Reply
#3: Tooconservative To: Willie Green, sneakypete, Stoner (#0)
MotleyFool had this piece on gun stocks in the last week:
Why Gun Stocks Plunged in August
Gun stocks dropped like a rock across the board in August. Sturm, Ruger & Company Inc (NYSE:RGR), American Outdoor Brands Corp (NASDAQ:AOBC), and Vista Outdoor Inc (NYSE:VSTO) all dropped double digits, according to data provided by S&P Global Market Intelligence, as a wave of bad news hit the industry.The domestic gun industry is actually suffering from operating conditions that are too favorable, which sounds a little crazy on the surface. But when you dive into the numbers it's entirely predictable that gun stocks are having a terrible 2017.
What happened in August
The drop in gun stocks last month was largely due to confirmation that people aren't buying as many guns as they were a year ago. Sturm, Ruger & Company's sales fell 22% to $131.9 million in the second quarter of 2017 and net income fell 53% to $10.2 million. Vista Outdoor's fiscal first quarter sales for the quarter ended July 2, 2017, fell 9.8% to $568.7 million and net income dropped 42.8% to $16.7 million. American Outdoor reported a 3.6% increase in sales for the fiscal fourth quarter ended April 30, 2017, the most recent data available, but that included the acquisition of Taylor Brands, Crimson Trace, and UST Brands in the past year.
The macro data reinforces the decline in sales as well. Purchases run through the National Instant Criminal Background Check System dropped from 2.2 million in July 2016 to 1.7 million in July 2017. There's little urgency to acquire a gun with President Trump in the White House and Republicans controlling Congress, so sales will naturally drop.
The irony of gun stocks
What's odd about gun companies is that the drop in sales in 2017 was easily predictable. There's typically a surge in gun sales when either a Democratic presidential candidate wins office or when there's a mass shooting. It's sad but true that the threat of restrictions is really what drives gun sales in the U.S.
The fact that Republicans will control both the White House and Congress for the next 18 months and the executive branch until 2021 puts significantly less urgency on gun purchases. And with a favorable policy environment for the next few years, it's unlikely sales will spike soon. . . .
Free advice: this would not be a good time to buy a gun store. Buy a liquor store or pot dispensary in a Blue state instead.
Tooconservative posted on 2017-09-12 12:17:13 Reply Private Reply
#4: Willie Green To: Tooconservative (#3)
Remington lays off 55 more in Upstate NY amid slump in gun sales (September 8, 2017)
That was just 4 days ago... on Friday...
and in addition to another 122 who got the axe 6 months ago...
"MAGA" my ass...
Willie Green posted on 2017-09-12 12:41:35 Reply Private Reply
#5: Tooconservative To: Willie Green (#4)
Tooconservative posted on 2017-09-12 15:10:57 Reply Private Reply
#6: sneakypete To: Willie Green (#0)
sneakypete posted on 2017-09-12 19:16:24 Reply Private Reply
#7: Tooconservative To: sneakypete (#6)
As good an anecdotal argument for legalizing suppressors as I've heard yet.
Tooconservative posted on 2017-09-13 08:34:52 Reply Private Reply