As the Market Soars, Main Street Feels the Pinch: Dollar Tree and the Rising Cost of Survival

While Wall Street celebrates record highs, Main Street grapples with rising costs that strain household budgets. Dollar Tree, once synonymous with affordability, has seen its pricing structure evolve significantly. In 2021, the company increased its baseline price from $1 to $1.25, and by 2025, introduced items priced up to $10 in select stores.

For residents in food deserts—areas with limited access to affordable and nutritious food—stores like Dollar Tree serve as essential sources for groceries. However, these stores often stock predominantly ultra-processed foods, contributing to dietary challenges. A study by Tufts, Harvard, and the USDA found that while dollar store food purchases scored low on the Healthy Eating Index, households shopping there didn’t significantly differ in overall diet quality from those shopping primarily at grocery stores.

The expansion of dollar stores in low-income communities has been linked to exacerbating food insecurity. These stores often lack fresh produce and healthy staples, leading to diets high in processed foods. Research indicates that small food retailers are less likely than supermarkets to sell healthy staple foods, further entrenching food insecurity in these areas.

Despite the financial gains reflected in the stock market, the affordability gap widens for working-class families. Economic gains at the top do not trickle down to the communities that need them most. As investment portfolios swell, the affordability gap grows, and the promise of basic necessities remains increasingly out of reach. For working-class families and those living in under-resourced neighborhoods, the soaring market feels less like a sign of prosperity and more like a reminder of growing inequality.

In addition to rising costs, recent changes to the Supplemental Nutrition Assistance Program (SNAP) are further impacting low-income households. A new law backed by the Trump administration and signed in July 2025 is set to reduce SNAP benefits for 2.4 million Americans by expanding work requirements to additional groups, including parents of children aged 14 and up, adults aged 55–64, veterans, former foster youth, and homeless individuals. The legislation requires these groups to work, volunteer, or participate in job training for at least 80 hours per month to qualify. This expansion is expected to shift more costs to states and redistribute resources, increasing income for middle- and high-income households while reducing benefits for low-income households.

The Center on Budget and Policy Priorities (CBPP) notes that people in food-insecure households spend roughly 45% more on medical care annually than those in food-secure households. SNAP participation has been linked to improved health outcomes and reduced healthcare costs. For instance, early access to SNAP among pregnant mothers and in early childhood improved birth outcomes and long-term health as adults. Elderly SNAP participants are less likely than similar non-participants to forgo their full prescribed dosage of medicine due to cost.

The reduction or loss of SNAP benefits can lead to increased food insecurity and poorer health outcomes. A study published in Health Affairs found that the loss of SNAP benefits was associated with food insecurity and poor health in working families with young children. The study indicated that reduced benefits were associated with greater odds of fair or poor caregiver and child health.

As the affordability gap widens and access to essential resources becomes more challenging, the combination of rising costs and reduced support systems underscores the growing inequality faced by working-class families and communities in need.

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Sources:

• Money Digest: Dollar Tree Chain Increasing Prices

• New York Post: Dollar Tree lifts price cap to $7

• Eating Well: Dollar Store Grocery Shopping Study

• Planet Forward: Dollar Stores and Food Security

• USDA Economic Research Service: Food Access Research Atlas

• U.S. Bureau of Labor Statistics: Consumer Price Index 2024 in Review

• DQYDJ: Average, Median, Top 1% Household Income Percentiles

• U.S. Census Bureau: Income in the United States: 2023

• The Guardian: Trump Law Will Cut Food Stamps for 2.4 Million People

• CBPP: SNAP Is Linked With Improved Health Outcomes and Lower Health Care Costs

• Health Affairs: Loss Of SNAP Is Associated With Food Insecurity And Poor Health In Working Families With Young Children