Puerto Rico’s Debts Are “Not Payable” According to Governor
The global economy has been walking a tightrope for some time. Zero interest-rate policies, slow economic growth, and mounting debt means zero room for error.
Puerto Rico is the latest jurisdiction to toss in the towel, with Governor Alejandro Garcia Padilla warning that the island is perilously close to falling into a “death spiral”.
“The debt is not payable… there is no other option. This is not politics, this is math,” Garcia Padilla told the New York Times. “But we have to make the economy grow. If not, we will be in a death spiral.”
Puerto Rico, as you can see in the above chart published by the WSJ, has been in a tricky situation for some time. It’s $72 billion of debt for an island of roughly 3.5 million is equal to 70% of economic output. This is a ratio that is at least three times higher than the next highest state or territory in the United States.
The territory, which was ceded to the United States after the Spanish-American War, has been in trouble for awhile. The population growth rate has slowed, emigration is at record levels, and per-capita GDP has dropped over the last decade. Puerto Rico has relied on debt to try to grow the economy, and now credit-rating companies expect the first default to occur this week from the island’s electricity provider, which borrowed $9 billion. Further, the territory has been issuing new debt to pay old debt, and now the government is expected to run out of cash in July.
The Puerto Rico scenario encapsulates the current challenge that the rest of the world faces. Central Banks have pulled out all the stops to try to get growth: QE, increased borrowing, ZIRP, and ongoing currency wars. However, if that growth doesn’t come at the rate needed to get the ball rolling, it makes the debt harder to service. The more leverage, the higher the stakes are. Then all that is needed is one catalyst and things can get ugly fast.
30 Years of Gun Manufacturing in America
The U.S. has produced nearly 170 million firearms over the past three decades. Here are the numbers behind America’s gun manufacturing sector.
30 Years of Gun Manufacturing in America
While gun sales have been brisk in recent years, the uncertainty surrounding COVID-19 was a boon for the gun industry.
From 2010-2019, an average of 13 million guns were sold legally in the U.S. each year. In 2020 and 2021, annual gun sales sharply increased to 20 million.
While the U.S. does import millions of weapons each year, a large amount of firearms sold in the country were produced domestically. Let’s dig into the data behind the multi-billion dollar gun manufacturing industry in America.
Gun Manufacturing in the United States
According to a recent report from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. has produced nearly 170 million firearms over the past three decades, with production increasing sharply in recent years.
America’s gunmakers produce a wide variety of firearms, but they’re generally grouped into five categories; pistols, rifles, shotguns, revolvers, and everything else.
Below is a breakdown of firearms manufactured in the country over the past 30 years, by type:
|Year||Pistols||Rifles||Revolvers||Shotguns||Misc. Firearms||Total Firearms|
Pistols (36%) and rifles (35%) are the dominant categories, and over time, the former has become the most commonly produced firearm type.
In 2001, pistols accounted for 21% of firearms produced. Today, nearly half of all firearms produced are pistols.
Who is Producing America’s Firearms?
There are a wide variety of firearm manufacturing companies in the U.S., but production is dominated by a few key players.
Here are the top 10 gunmakers in America, which collectively make up 70% of production:
|Rank||Firearm Manufacturer||Guns Produced (2016-2020)||Share of total|
|1||Smith & Wesson Corp||8,218,199||17.2%|
|2||Sturm, Ruger & Company, Inc||8,166,448||17.1%|
|3||Sig Sauer Inc||3,660,629||7.7%|
|5||0 F Mossberg & Sons Inc||2,223,241||4.7%|
|6||Taurus International Manufacturing||1,996,121||4.2%|
|7||WM C Anderson Inc||1,816,625||3.8%|
|9||Henry RAC Holding Corp||1,378,544||2.9%|
|10||JIE Capital Holdings / Enterprises||1,258,969||2.6%|
One-third of production comes from two publicly-traded parent companies: Smith & Wesson (NYSE: RGR), and Sturm, Ruger & Co. (NASDAQ: SWBI)
Some of these players are especially dominant within certain types of firearms. For example:
- 58% of pistols were made by Smith & Wesson, Ruger, and SIG SAUER (2008–2018)
- 45% of rifles were made by Remington*, Ruger, and Smith & Wesson (2008–2018)
*In 2020, Remington filed for Chapter 11 bankruptcy protection, and its assets were divided and sold to various buyers. The Remington brand name is now owned by Vista Outdoor (NYSE: VSTO)
The Geography of Gun Manufacturing
Companies that manufacture guns hold a Type 07 license from the ATF. As of 2020, there are more than 16,000 Type 07 licensees across the United States.
Below is a state-level look at where the country’s licensees are located:
|State||Licenses (2000)||Licenses (2020)||Population||Licenses per 100,000 pop. (2020)|
These manufacturers are located all around the country, so these numbers are somewhat reflective of population. Unsurprisingly, large states like Texas and Florida have the most licensees.
Sorting by the number of licensees per 100,000 people offers a different point of view. By this measure, Wyoming, Montana, and Idaho come out on top.
If recent sales and production trends are any indication, these numbers may only continue to grow.
Made in America: Goods Exports by State
The U.S. exported $1.8 trillion worth of goods in 2021. This infographic looks at where that trade activity took place across the nation.
Made in America: Goods Exports by State
After China, the U.S. is the next largest exporter of goods in the world, shipping out $1.8 trillion worth of goods in 2021—an increase of 23% over the previous year.
Of course, that massive number doesn’t tell the whole story. The U.S. economy is multifaceted, with varying levels of trade activity taking place all across the nation.
Using the latest data on international trade from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, we’ve visualized the value of America’s goods exports by state.
Top 10 Exporter States
Here are the top 10 American states that exported the highest dollar value worth of goods during 2021. Combined, these export-leading states represent 59.4% of the nation’s total exports.
|Rank||State||Total Exports Value||% share|
|#3||New York||$84.9 billion||4.8%|
|#10||New Jersey||$49.5 billion||2.8%|
|Top 10 States||$1.04 trillion||59.4%|
Texas has been the top exporting state in the U.S. for an incredible 20 years in a row.
Last year, Texas exported $375 billion worth of goods, which is more than California ($175 billion), New York ($85 billion), and Louisiana ($77 billion) combined. The state’s largest manufacturing export category is petroleum and coal products, but it’s also important to mention that Texas led the nation in tech exports for the ninth straight year.
California was the second highest exporter of goods in 2021 with a total value of $175 billion, an increase of 12% from the previous year. The state’s main export by value was computer and electronic product manufacturing, representing 17.8% of the total U.S. exports of that industry. California was also second among all states in exports of machinery manufacturing, accounting for 13.9% of the U.S. total.
What Type of Goods are Exported?
Here is a breakdown of the biggest U.S. export categories by value in 2021.
|Rank||Product Group||Annual Export Value (2021)||Share of Total Exports|
|1||Mineral fuels including oil||$239.8 billion||13.7%|
|2||Machinery including computers||$209.3 billion||11.9%|
|3||Electrical machinery, equipment||$185.4 billion||10.6%|
|5||Optical, technical, medical apparatus||$91.7 billion||5.2%|
|6||Aircraft, spacecraft||$89.1 billion||5.1%|
|7||Gems, precious metals||$82.3 billion||4.7%|
|9||Plastics, plastic articles||$74.3 billion||4.2%|
|10||Organic chemicals||$42.9 billion||2.4%|
These top 10 export categories alone represent almost 70% of America’s total exports.
The biggest grower among this list is mineral fuels, up by 59% from last year. Pharmaceuticals saw the second biggest one-year increase (45%).
Top 10 U.S. Exports by Country of Destination
So who is buying “Made in America” products?
Unsurprisingly, neighboring countries Canada (17.5%) and Mexico (15.8%) are the two biggest buyers of American goods. Together, they purchase one-third of American exports.
|Rank||Destination Country||Share of U.S. Goods Exports|
|5||🇰🇷 South Korea||3.7%|
|7||🇬🇧 United Kingdom||3.5%|
Three Asian countries round out the top five list: China (8.6%), Japan (4.3%), and South Korea (3.7%). Together, the top five countries account for around half of all goods exports.
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