The pro-gun control group Moms Demand Action is hitting the gun industry where it hurts: the wallet. A national divestment campaign has made progress and prompted Wall Street to divest $150 million in gun holdings.
Moms Demand Action teamed up with Bill de Blasio, a New York City public advocate, to run the online forum, Wallstreetforchange.com. As part of the campaign, activists called public hedge fund groups and asked them not to invest in publicly traded gun manufacturing companies such as Olin Corporation and Smith & Wesson.
Earlier this week, de Blasio announced that eight hedge funds had “completely divested their gun holdings” worth approximately $150 million. Fourteen other firms have cut their gun investments by 27 percent.
Moms Demand Action Shannon Watts announced “by divesting from companies that profit from sales of assault weapons and high-capacity magazines, these companies are making an investment in the safety of American children.”
This is one of the few gun-control strategies that could actually have a direct impact on gun manufacturers. Gun-rights proponents typically ignore or fight against gun control pushes, but it is more difficult to fight against unwilling investors. In order to attract new investors, gun companies might be motivated to change business practices by promoting safer products.
At the very least, this divestment campaign has a real effect on gun manufacturers. Unlike the background check bill, which quickly died in Congress all while spurring a national spike in gun sales, this divestment campaign actually has a negative impact on gun manufacturers. Perhaps gun-control advocates should reevaluate their strategy and focus less on gun control legislation and more on economic punishment.
What are your thoughts on this economic strategy? Can groups like Moms Demand Action truly hurt gun manufacturers by trying to cut down on gun profits?
Source: The Epoch Times