I never understood the rationale for the shortage. Varmint hunting for food? I don’t get it.
Total productive capacity in the U.S. was 4 billion rounds a year. If 10 million decided to buy 1,000 rounds, demand just shot up to 10 billion.
It has taken 5 years to produce the ammo, ramp up production to 5-6 billion a year, and meet the demand.
That was hampered by manufactures who only raised prices very, very slowly, so as to not be accused of price gouging.
Middle men purchased as fast as possible and ramped up prices to 4-6 times previous levels.
As soon as .22 ammo was delivered to WalMart it was purchased at the absurd “normal” price. Then the purchaser would take it to a gun show or advertise on line. They were able to quadruple their money.
A classic bubble, which is finally deflating, with the election of President Trump.
Good summary. Pretty much what happened with .22.