President Joe Biden’s 30 year-high inflation has caused Dollar Tree to raise prices by 25 percent on the majority of its products, the company announced Tuesday.
After 35 years of offering consumers, often “low-income consumers,” everyday products for just a dollar, Dollar Tree customers will have to fork over 25 percent more money, or $1.25, to purchase the majority of goods sold in Dollar Tree stores.
“We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” President and CEO Michael Witynski stated. “Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide. Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
The price increases are a result of “merchandise cost increases,” the company announced, which includes jammed supply chain points that have contributed to Biden’s inflation:
The new price point will enable Dollar Tree to return to its historical gross margin range by mitigating historically-high merchandise cost increases, including freight and distribution costs, as well as higher operating costs.
Inflation has pushed up many consumer prices as well as the prices paid by companies for the goods they sell. Dollar Tree, like many public companies, is under pressure from investors to hike prices to preserve profit margins in the face of escalating costs.
“The Company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers,” the company said. “This decision is permanent and is not a reaction to short-term or transitory market conditions.”
Meanwhile, wages for the American worker have decreased. Breitbart News reported:
Bosses paid an average of 0.4 percent more per hour in October but prices paid by wage earners rose by 1.1 percent, pushing down real wages.
What’s more, because weekly hours fell 0.3 percent, average weekly earnings decreased by 1.0 percent after adjusting for inflation.
Compared with a year ago, inflation-adjusted hourly earnings fell 1.1 percent and weekly earnings fell 1.4 percent.
Biden’s answer to inflation has been pumping more money into the economy. Last week, Biden signed the $1.2 trillion so-called “infrastructure” bill into law after spending trillions more in the spring via the coronavirus relief package. The coronavirus relief paid people not to work, increasing labor costs.
Biden also intends to pump as much as $3.5 trillion more dollars into the economy by passing the reconciliation package.
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