It seems like, if this sort of thing is actually happening, then, when we strip away all the specifics, which seem to be a bit emotionally charged, we're left with a clean little fable about capitalism?
"A long time ago, there was one store, and prices were high. Then a second store came to town, and prices were low. Eventually, one of the stores closed, so now we have one store again, and prices are high."
I think it's the last step that's not happening here. DG comes in, outcompetes the less efficient alternatives, and then stays DG for the long-run. IMO, making the consumers in the community better off.
Perhaps, though there is that thing about local business keeping the money local to contend with.
At the same time, I'm not convinced we can just assume that to be the case. When a new grocery store in the neighboring town came and put the IGA out of business, my friends were also comparing notes and noticing that the new store paid better than the old one. And offered some things locally where we previously had to drive all the way into the city to get them.
I'm just not convinced these kind of situations can all be neatly fit into a single, straightforward narrative.
>Perhaps, though there is that thing about local business keeping the money local to contend with.
I'd say this is to be proven. People that own businesses in broke areas (which is what we're talking about here, no?) are also likely to invest their money in expanding their company in other broke areas, personal financial investments and their children's education.
I live in a relatively rural community where the public schools actually do quite academically when compared across the entire state and we would get families moving into the community because of the excellent care we provide to developmentally disabled kids. Unfortunately the vast majority of people I know that went to college moved out of town and is now generating tax revenue elsewhere.
"A long time ago, there was one store, and prices were high. Then a second store came to town, and prices were low. Eventually, one of the stores closed, so now we have one store again, and prices are high."