In 2022, you will no longer be able to purchase $ 1 items from Dollar Tree. One of the last dollar stores in the United States is experiencing a price increase, due to inflation. The announcement was made during the company’s quarterly earnings release on November 23, which led the internet to blame one man – President Joe Biden. From top Republicans like Kevin McCarthy to ordinary Americans, everyone has targeted their fury solely on the President for change.
Of course, Biden is no stranger to critics. Trying to get the United States out of the pandemic, it has been widely criticized for a large number of decisions and actions. On top of that, the president is also facing rumors of internal feuds between him and Kamala Harris, causing his already declining ratings to sink even deeper. It doesn’t help that his numerous public blunders have put the White House in a blemish, causing them to cut back on its time with the press.
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In mid-October, the hashtag #EmptyShelvesJoe began to go viral as the crisis in the U.S. supply chain left many vital products unavailable. On top of that, Dollar Tree has acknowledged that inflation is a major problem, forcing it to raise its prices. But how much of the blame should Biden take?
The inflation crisis in the United States
Thanks to Covid-19, the global economy has been plunged into turmoil as closures have left factories and businesses closed. Despite the efforts of the government, inflation continues to rise due to an abundance of liquidity among consumers, but a shortage of labor. The labor shortage (which is a problem globally) means that we cannot produce as much as we need, resulting in increased demand for goods, pushing up prices.
According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) jumped 6.2% for October 2021, a 30-year record. Over the past 12 months, the food index increased 5.4%, with meats like pork (14.1%) and beef (20.1%) experiencing the largest increase. Not surprisingly, in recent months, farms and factories have struggled to get the people they need to process food, as is well recorded.
This inflation has hurt all businesses, but it seems to have ultimately forced Dollar Tree to give up its USP. Beginning in 2022, most goods will now cost $ 1.25, a 25% price hike that the company said was “not a reaction to short-term or transient market conditions.” CEO Michael Witynski noted that the $ 1 price has hindered Dollar Tree, and “now is the right time to move away from the constraints of the $ 1 price.”
The change comes after 35 years of selling merchandise for $ 1, which has made Dollar Tree an icon for low-income neighborhoods in cities across the United States. So naturally people were furious that the prices were going up. Needing someone to blame, many, like Kevin McCarthy, decided to focus their anger on Joe Biden.
“Only Biden Could Fuck Dollar Tree”
âThanks Biden,â McCarthy tweeted as he shared a story about the price hike. Rep. Elise Stefanik said, “In Joe Biden’s America, the Dollar Tree store is now the $ 1.25 tree.” A GOP state senator responded, âUnbelievable! Joe Biden even ruined the dollar store! One person commented: “Only Biden could fuck Dollar Tree.”
In Joe Biden’s America, the Dollar Tree store is now the $ 1.25 tree.
– Representative Elise Stefanik (@RepStefanik) 23 November 2021
âOkay, listen Joe Biden was bad, but this inflation that caused the dollar tree to become a 1.25 tree officially made him the worst president in history,â one user commented. Another said: âA 25% increase in Dollar Tree costs! Aren’t you ashamed, President Biden? !!â One person tweeted: âDamn. Biden cut down the dollar tree! “
okay listen Joe Biden was bad, but that inflation that made the dollar tree turn into a 1.25 tree officially made him the worst president in history.
– 2SaltyRamen (@ 2SaltyRamen) November 24, 2021
A 25% increase in Dollar Tree costs! Aren’t you ashamed, President Biden? !!
– Josh Copen (@joshcopen) November 24, 2021
Is Biden to blame?
As president, it can be easy to blame Biden for the Dollar Tree hike, but the reality is much more complex. In response to inflation, the US Federal Reserve typically raises interest rates, which it has not done so far. If the reserve does, that should help ease the pressure on the economy, but there is also a bigger problem at play. As economist Robert Reich noted, “the underlying problem is not. not inflation per se. It’s the lack of competition. ”
Right now, another reason for the rise is the crisis in the supply chain, which is a problem internationally. Biden alone cannot solve this problem, given that the United States imported $ 283.4 billion worth of goods (as of June 2021). With a dire shortage of manpower, getting these products to consumers is proving to be a challenge, leading to shortages and rising prices. Ultimately, Dollar Tree’s price hike is also a response to the fact that goods simply don’t cost $ 1 anymore, inflation topped that point long before the pandemic.