In Defense of Dollar Stores
Aside from their millions of customers, it seems everyone loves to hate dollar stores. Critics claim they are akin to a “disease” that reveals the worst of capitalism. Others say dollar stores hurt communities, are a blight to nature, peddle cheap products, and mislead customers into believing their prices are lower than other stores. Â
Of course, if these accusations were true, it would make one wonder why dollar stores existed in the first place. Do they serve a legitimate purpose, or are they a giant scam?Â
The answer is straightforward when considered from an economic perspective. Dollar stores exist because they provide customers, especially those in small towns and rural areas, with convenient access to relatively inexpensive household goods at a value that is better than the alternatives. If dollar stores didn’t do that, they would go away. Â
A lot of the items at dollar stores are low-cost, processed food. However, the same is true at major grocery chains like Meijer, Kroger, and Walmart. Many dollar stores also stock fresh food. Research on dollar stores and their impact on food deserts is mixed, but if consumers want fresh food, dollar stores can often provide that. Â
Critics assume that dollar stores drive away local grocery stores. That is, Dollar General eats the “Smith Family Grocer.” While that happens, it isn’t really the norm. Why would they open where the competition is better?Â
Dollar stores often fill gaps in areas with few or no grocery options. Their competition isn’t Meijer or Kroger but gas stations like Speedway, Marathon, and Shell.
Dollar stores normally compete w
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
