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The Dollar Scheme Part II: Cancer At Low Cost


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We like to think that the products that we buy are sold to us by kindly family folks who are concerned about our well-being. But we think this because this is what we have been taught to think by advanced marketing campaigns, not because that is the reality. However, no matter how much we try to think the kindly old man behind the counter when we go to the store had a caring hand in inspecting our products to ensure quality and, most importantly, safety, what actually happens is much more grim and far less safe than most people imagine. While organizations like the FDA are often portrayed as having all encompassing power to prevent such things, their actual power is very limited, and they can only prevent faulty products from making it to the shelves if and when they can track down said products. After decades of often unfounded skepticism about the intentions of the FDA and subsequent legislation that in many ways decreased the effectiveness of the FDA's ability to crack down on big business, I am reading more and more stories about bargain stores like the Dollar Tree selling toxic products to consumers. All of this is coming at a time when the Dollar Tree is not lowering, but raising its prices. Citing inflation and essentially blaming the Biden administration for high costs, as so many other companies have done, may seem like a good excuse, but it is worth remembering that the Dollar Tree saw a huge increase in profit in 2020. Don't believe me? There is no need. The numbers speak for themselves, "Dollar Tree same-store sales increased 2.2%. Gross profit increased 10.6% to $7.79 billion.  Gross margin improved 70 basis points to 30.5%, compared to 29.8% in  the prior year. Fiscal 2020 included $36.3 million, or 15 basis points,  related to COVID-19 costs." (SEC) Now, how is it that the Dollar Tree was seriously affected by inflation after benefiting from a 10.6% increase in gross profit? On what planet does that make sense? And what about the fact that the Dollar Tree pays its workers ridiculously low wages? The average hourly wage for a cashier is about nine dollars an hour, twelve dollars an hour for assistant managers, and thirteen dollars an hour for a merchandise manager. Further, while news outlets have maintained that workers are driving the increase in prices, I have found no evidence that the Dollar Tree has given or that they plan to give their workers raises. Even more suspect is the fact that the Dollar Tree has experienced worker shortages, which would imply that they are currently saving money on their workforce, not spending it. If all of this is accurate then why is the Dollar Tree struggling to keep quality products on its shelves? Does more profit now equal more loss in America? If you are a consumer, you would think so, especially if you are poor. The Dollar Tree is using its popularity to essentially strong arm its competition out of the neighborhood. The reason you do not often find many small mom and pop stores or supermarkets near a Dollar Tree is because they "...intentionally cluster multiple stores in low-income areas. That strategy discourages  supermarkets from opening and it threatens existing mom-and-pop grocers,  critics say." (CNN Business) That is right. Instead of blaming sitting presidents for those small businesses going under, it is high time we started to point the finger at the real culprit, bargain stores that charge ridiculously low prices for faulty goods that quality stores simply cannot afford to compete with. Dollar stores also keep poor neighborhoods in poor health by selling mostly snack foods and no produce to speak of. These snacks tend to be high in sugar and saturated fats, which lead to increases in heart disease, diabetes and cancers. According to Web Md, for every ten percent increase in dietary intake of highly processed foods, there is a twelve percent increase in the consumer's risk of developing cancer.  

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More Content TalkBy Christopher P. Carter