US forces have fired so many bullets in Iraq and Afghanistan – an estimated 250,000 for every insurgent killed – that American ammunition-makers cannot keep up with demand. As a result the US is having to import supplies from Israel. 
(Read more from belfasttelegraph.co.uk)
The cited article says, “The Pentagon reportedly bought 313 million rounds of 5.56mm, 7.62mm and 50-calibre ammunition last year and paid $10m (about £5.5m) more than it would have cost for it to produce the ammunition at its own facilities.”
So, why doesn’t U. S. have facilities to make such volume of bullets?
Analysis the issue from various angles. The war is supposed to be limited and temporary. So, why would a manufacturer invest in equipment that costs a fortune only to see it sit idle next year?
Again, why doesn’t the government have the equipment at its own armories? Could it be that it would be wasteful government spending, yes?
The original post is an incendiary anti war post that rants without looking at the underlying financials that are the foundations of business and political decisions.
Maybe the original question should have dealt with whether it is a good decision to invest in bullet making equipment first?
And for those of us who know just a little, there are many small and competent manufacturers of bullets. They are not big enough by themselves to vie for large contracts.
Why aren’t the contracts parsed to allow many small U.S. manufacturers produce parts of needs? The answer lies in big government and complex quality control test that are very expensive.
Yet those who participate in competion shooting have no trouble getting high quality American made ammunition. The greatest sin is that some even make their own.
Ed K