Exposing the madness wehind current economic thought

Sunday, May 20, 2012

Why Is Homeland Security Buying 450 Million Rounds of Hollow Point Bullets?

From The Blaze:

The Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) has awarded defense contractor ATK with an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement for .40 caliber hollow point ammunition. According to an official ATK press release, U.S. agents will receive a maximum of 450 million rounds over a five-year period.


The order may seem unusually high, but gun experts I talked to said it is not necessarily unusual and simply reflects a long-running practice by DHS and law enforcement agencies to use any remaining budget surplus on items routinely used and that would not be called into question. The idea being that if an agency does not use its entire budget in expenditures, the government will lower its budget the following year.

So a government agency is using your tax dollars to buy ammo it doesn't even need in order to justify its over-sized budget. At the same time the artificial increase in demand causes a decrease in retail availability for hollow points which in turn does drive up demand, and hence prices for such ammunition. In other words: you get screwed twice while the government benefits.