We began talking about "Regime Uncertainty" way back in the Spring of 2009, but the theory has been around ever since Robert Higgs coined the phrase in explaining why the Great Depression lasted so long. It's a simple theory: fear of government prevented businessmen from making the investments needed to expand the economy.
Today we have a very good example of how fear of government affects the economy. Except this time the effect is positive, at least for one industry.
Gun and ammo manufacturers and sellers are thriving like never before. And the reason is fear of Barack Obama's ambitious drive to take guns away from honest citizens. As the president ramps up his rhetoric, fear envelops the country. And citizens are taking action to protect themselves by buying guns before they are outlawed.
President Obama seems intent on fulfilling a dream of many Democrats, and that's to disarm the citizenry. Why do they want to do that? The leaders want it because it enhances their own power over the people. As for why their followers are so willing to surrender their rights is up to them to try and explain. But my theory is that they have such an overwhelming faith in government that they think the government will step in to solve any problem that arises. The world would be a better place if people would just do what the government says. Free people just cause more problems.
So we end up with programs like Obamacare. Fortunately, there are still plenty of people around who think the better world is a place where the government leaves them alone.
And as long as there is an uncertainty about what rights citizens will have remaining after the president gets through with them then the gun market will thrive. If only I had bought Sturm Ruger stock back in the Spring of 2009. Sigh.