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If youre talking squirrels and rabbits, theres really no reason for anything more than the .22 LR.
IMO any centerfire rifle is a waste of ammo money on something like a squirrel.
Would you rather pay $1 for a few little pieces of squirrel meat or 3 cents?
If you want to talk frugality, gun costs aside, 20 bucks worth of ammo gets you at least 500 squirrels with a .22 LR, about 20 with a centerfire rifle...assuming you never miss.
Now...if you want to get crazy and shoot at moving game then yeah a shotgun would be much preferred, but otherwise your back to the ammo cost equation.
Personally with some of the punchier .22LR ammo available I also wouldnt hesitate to shoot a Missouri coyote or bobcat, at close range of course.
I guess the only reason I can think of not to use a .22 for small game is if you feel theres a possibility of running into something dangerous, but even then Id rather have a .22 than a pointy stick.
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