The Annoyance Economy: A Growing Frustration for Americans

Recently, one of us faced an aggravating ordeal attempting to secure the refund promised by an airline. We repeatedly yelled “refund” at an AI phone system, suffered through endless hold music, and were bounced between chatbot and human agent, spending nearly an hour to resolve a task that should have taken mere moments.

Democrats vying for the presidency in the coming two years will present policy plans addressing broad issues like housing and healthcare. These are pressing matters, but they overlook smaller, ubiquitous annoyances that waste time and complicate daily life.

We are familiar with these irritations: interminable hold times, convoluted insurance paperwork, incessant spam calls and messages, proliferating fees on routine transactions. This phenomenon is dubbed the “Annoyance Economy,” and addressing it presents politicians with a straightforward opportunity.

By any measure, the Annoyance Economy is booming. Time spent on hold with customer service has surged by 60% over two decades. A study revealed that workers lose $22 billion annually to health insurance hassles. Hidden fees extend beyond airlines and banks, permeating aspects of daily life from concert tickets to food delivery.

Democrats have long discussed reclaiming voters disenchanted with government efficacy. Our policy brief, part of Project 2029, explores solutions post-President Trump.

We must tackle robocalls and spam texts first. Phones, once channels for personal communication, now act as secondary spam folders brimming with unsolicited pitches. Loopholes enabling this inundation should be closed, mandating consent for communication.

The health care system poses additional challenges. Insurers should offer online form acceptance, eliminating the need for physical printing and mailing. Penalties must be imposed for outdated provider directories. The process of prior authorization for medical procedures needs restructuring to prevent patient/provider/insurer ping-pong.

Customer service also demands attention. Many have exclaimed “live agent” into phones or shut laptops in frustration over ineffective chatbots. Subscription cancellation often entails enduring retention pitches. Streamlining cancellations to match sign-up simplicity is essential.

Then there’s the issue of junk fees. Meals at $10 double at checkout due to surcharges. Landlords charge extra for rent processing or mailbox access. Rental cars impose $10-$15 daily surcharges for additional drivers, inflating family trip costs. Requiring transparent pricing and banning valueless fees is imperative.

A 2024 YouGov poll found restrictions on robocalls to be the most favored policy idea. Another survey showed 77% of likely voters, including 72% of Republicans, supporting bans on hidden fees. A substantial number want Congress to prioritize these frustrations.

Fortuitously, a new president can tackle much of this agenda using extant authorities, bypassing congressional gridlock.

The Annoyance Economy thrives due to corporate profit and political disregard. This must change. Politicians aiming to showcase government’s positive impact on daily life should seize this opportunity. The agenda is popular, actionable, and overdue.

Neale Mahoney is an economics professor and heads Stanford Institute for Economic Policy Research. Chad Maisel serves as Project 2029’s executive director. The article reflects their personal views.