Tackling the Annoyance Economy: A Call for Action
Recently, one of us spent nearly an hour trying to obtain a promised airline refund. We shouted “refund” into an AI phone system, suffered through endless hold music, and bounced between a chatbot and a human agent before finally receiving the money back. What should have been a simple task turned into an evening’s loss.
Political Promises and Everyday Hassles
Over the coming years, Democratic presidential candidates will present sweeping policy plans covering housing, health care, corruption, and other significant issues. While these problems are substantial and require strong solutions, there is a glaring oversight: the everyday irritations that consume our time and complicate life unnecessarily.
People are familiar with losing hours to phone holds or drowning in insurance paperwork, receiving relentless spam calls and texts, and facing unexpected fees on routine transactions. This situation, referred to as the “Annoyance Economy,” offers politicians a clear opportunity to resonate with voters.
The Rise of the Annoyance Economy
The Annoyance Economy is flourishing. In the past two decades, the time Americans spend on hold with customer service has risen by 60%. A recent study showed that workers lose nearly $22 billion annually dealing with health insurance issues. Sneaky fees, originating with airlines and banks, have spread into nearly every aspect of daily life, from concert ticket purchases to food delivery services.
A Policy Brief to Counter Everyday Irritations
Democrats have long discussed how to regain voters who feel disconnected from government effectiveness. Our policy brief, part of Project 2029—an initiative to forge new ideas for the post-Trump era—offers solutions.
First, address robocalls and spam texts. Phones, once used for personal communication, now act like spam folders, cluttered with unsolicited pitches from companies, politicians, and fraudsters. Closing loopholes that allow marketing and political groups to inundate inboxes and requiring consent for incoming calls and texts is crucial.
Next, reform the American health care system, which drains time and energy from already burdened individuals. Insurers should accept forms online, eliminating the need for printers, stamps, and envelopes, and should incur penalties for failing to update provider directories. Prior authorization processes should be simplified to prevent patients from being stuck between providers and insurers.
Improving Customer Service and Tackling Hidden Fees
Customer service needs improvement. Many have shouted “live agent” into their phones or closed laptops in frustration after dealing with ineffective chatbots. Subscription cancellations can be even worse, with companies requiring multiple retention attempts before ending a service. Easy cancellation should match simple signup processes, and customers should always have the option to speak with a live agent or schedule callbacks.
Hidden fees are another concern. Meals doubling in price at checkout, landlords charging for rent processing or mail sorting, and rental car surcharges for additional drivers can significantly increase costs. Policymakers should enforce all-in pricing and outlaw fees that lack real value.
A Popular Agenda with Immediate Actions
Americans have reached their limit. A 2024 YouGov poll found calls for stricter robocall regulations ranked highest among policy ideas. Another survey revealed 77% of likely voters, including 72% of Republicans, favored bans on concealed fees. Two-thirds of Americans want Congress to tackle these frustrations, with half prioritizing it.
Remarkably, much of this agenda can progress without Congress’s input. A new president can activate existing powers to initiate changes.
The Annoyance Economy endures because companies profit from it and politicians categorize it as lesser. It doesn’t need to be dismissed. Politicians aiming to prove government’s potential for positively impacting everyday life have a straightforward, overdue opportunity here.
Neale Mahoney is a professor of economics and director of the Stanford Institute for Economic Policy Research. Chad Maisel is executive director of Project 2029.
The views expressed herein are the authors’