Why are US consumers so angry? It's not just high prices
theguardian.com
theguardian.com
That scammy product, pushed to us by an algorithm we can't control or escape, sold with lies and guarantees that will never be enforced, with deceptive ads generated by AI that becomes increasingly undistinguishable from the real thing, and flooded with positive reviews generated by bots, is money that won't go to essential things like food, rent, and transport, let alone healthcare, all of which is also increasingly unaffordable. The rage is understandable.
God damn one of the best purchases I’ve made for a house. There is a market for “dumb products” that aren’t stupid.
Higher prices these days mean more features, but not necessarily higher quality.
Everything is a subscription, can only be controlled by their app, and is mass-produced in a factory in China, brought here and then sold with a story plus a huge markup.
A less connected example:
You want to buy a new couch. Budget: $2k. You get:
* bad construction, it'll creak
* badly joined, so the pieces will come loose
* barely springs under the cusions
* non-removeable cushions
* foam that collapses in 2 years
But even spending $6k isn't gonna mitigate all of those issues above. You're probably closer to $10k.And then if you want a recliner, finding one with removeable cushions is nearly impossible. So far I found 1 brand that does it. ONE.
https://www.urbanbarn.com/en/product/sibley-sofa-chaise-SIBL...
Also, brands like CB2 and Crate & Barrel are American and popular in Canada - especially CB2 because of its good designs and quality at cheaper prices (which are even cheaper in the US).
But for the couch, is it unreasonable to want a couch in which I can replace the foam? For not wanting a throw away product?
The world today is not perfect: the smartphone and social media have rapidly and I think negatively changed society, empowering fringey issues, elevatiing the angriest personalities and inflaming passions. But materially, apart from housing and healthcare (which is hardly the greatest present concern of most people short of middle age), *we live in an age of wonders*.
To your complaint about bot reviews and product quality, it has never been easier to return unsatisfactory products through Amazon. And thanks to its massive market power, the seller eats a lot of the cost of that return. As for longevity, I just don’t see it. I buy a lot of cheap little Chinese tools and supplies from AliExpress (which does not have Amazon’s generous return policy), and I’ve never been disappointed.
Healthcare is expensive because it doesn’t scale, and Americans use a lot of it and demand that it be the absolute best. 92% of Americans have health insurance, ~55% through work.
I’m sure you’re aware of these facts, but boring realities would diffuse the angry attention you enjoy. Well, enjoy it!
You and I know it's connected in a sense.
But is it meaningfully connected? It plays into a story about corporate hegemony, money influencing politicians through lobbying, the power of health care conglomerates and large corporations.
But it doesn't have any teeth to the average person, who's talking about inflation, or they're talking about gas, or they're talking about taxes, or they're talking about health care bills. I never hear a unified narrative. Should I be? Is it helpful? Socialist narratives have a bad reputation, and our current socialist politicians talk a LOT about what happens overseas, or immigration, or matters of race and gender. I am talking about the U.S. socialists, here.
GP said "essential things like food, rent, and transport, let alone healthcare".
I think you're right that we rarely phrase it like 'food rent healthcare transport', but "average people" certainly talk about spending so much on essentials that there's nothing left for fun, or being unable to afford the essentials.
Gmail (and similar products) killed it.
The internet made it possible for a company to serve hundreds of millions of people without the overhead of listening to, or supporting, or giving much of a shit about them. "Why are you complaining? It's free!"
Gmail envy makes it seem like you're some underachieving sucker if you bend over backwards to deliver a great customer experience.
It probably would be possible to have a billion customers and make them happy, but the number of employees it would take would only make you rich, instead of unfathomably rich.
As a user, you were faceless. I have a vague memory from the early Gmail days. I'm pretty sure they charged me $5 to contact support.
Customer focus includes more than having a good product, though having a good product is a component. The business model Google chose (it was a choice) for Gmail wasn't compatible with focusing on Google's customers.
That said, there were other good examples. I chose Gmail because I believe it was one of the best known products of the era.
I'm embarrassed to say, I just realized the big problem with my original comment, and it is hackneyed: the end-users probably weren't the customers.
I doubt Google was cavalier about its relationships with advertisers back then.
Gmail in its early stage had a simple surface area. These days a Google account could mean a gateway to entire digital life for some. It requires much more focus and responsibility to handle and Google never had plans to do any of that from the beginning.
“It feels like a war on consumers,” said Sally Greenberg, the executive director of the National Consumers League, a 125-year-old consumer advocacy group. Households are being hit by “a tsunami of fees and hidden charges and tricks and traps”, she said.
American consumers face a paradox – they have more choices and higher expectations than ever before, thanks to innovations like delivery-on-demand and streaming services, said Peter Fader, a Wharton School marketing professor. “But not only does service just suck,” Fader said, consumers “are starting to realize that a lot of the cool data and technology is being used against them”.
This isn't a perfect solution and I know there are counter-examples, but I have been much more satisfied supporting small, local or owner-run shops.
The more customers they have the less they care about any individual customer.
The more products they have the less they care about any single product.
The more employees they have the less they care about each individual employee doing a good job. And there's no they any more, there's a big, soul-less profit glutton.
If not, what do you do in your 40's with no healthcare? Or the state marketplace healthcare that is basically 'catrastrophe only', with no out of network support, and still costs over 800 a month?
Do you rent, or do you own, and if you own, how about the property taxes.
Starting a business in 2026 is for the Made Men of tech, who've sold monstrous share amounts for millions, and can post messages on Hackernews with advice on how to escape the rat race.
What are you even talking about. How many of your local restaurants, coffee shops, laundromats, roofing companies, landscape consultants, shoe repair shops etc do you think are owned by anyone with financial independence?
This isn't the 1950s - spending is down everywhere, costs are up, interests rates are high.
If you expect to switch right over from tech and make 200k, you will be sorely disappointed. If you expect to be destitute you may be quite surprised.
Also the failure rate for restaurants is on par with the failure rate for other service providing businesses. The fact that the number includes so many uneducated, inexperienced, frankly average or below average intelligence people who open restaurants should indicate to you that it's not really that impossible of an endeavor.
The last presidential election disenfranchised a party (and with it half the country), suppressing turnout. Half of this country had no say in their nominee, by design.
Then A.I. was predicted to end white collar employment.
And now we are at war, with threats to security and economic stability that are unpredictable.
Nobody wanted any of this. Such is the sentiment of our decade.
I'm not really sure the problem is AI here. I've had plenty of bad experiences with human customer service agents that were poorly-trained and hard to understand. An AI can be implemented in a shitty way, where it's at best a regurgitation of the help docs. Or, it can be implemented well, where it can autonomously take action without any human involved.
I have had a couple of experiences with the latter. Once you do, you realize that you actually don't need to talk to a person per se -- you just want your problem solved efficiently. That can be done with a human or an AI; it isn't really the most significant bit to be filtering on IMO.
"Question about Order"
"Talk to Salesperson"
"Billing inquiry"
...
I'm sorry. I didn't quite catch yet. Good afternoon Nunez...
Up until the 1960s, there weren't that many things the US consumer felt they 'needed'. Heck, even in the 1980s, people considered a microwave, cable television, air conditioning (in most places), a second car, televisions throughout the home, etc., a luxury. There still aren't that many things the American consumer needs... they just perceive they do. In the past, consumers prioritized their wants better, probably because they had no choice. A whole lot fewer people had a whole bunch of credit and credit was rarely used for that sort of thing.
Of course the American consumer is dissatisfied. It thinks it is buying out things that aren't and never were for sale, like parts of a jigsaw puzzle called 'the american dream', earning a piece for every time it feels compelled to do somethink like plop down $1200 on a backyard grill. but there is no bigger picture. It's just stuff. Sometimes good stuff to have (god bless cool air in a heatwave). But stuff we didn't feel judged not to have before.
> That toxic cycle is now being sped up by a Trump administration that is defanging government watchdogs, consumer rights advocates say.
> In late 2023, Toyota Motor Credit, the finance arm of the carmaker, was ordered to pay $60m after dealers sold thousands of customers unwanted insurance products with their loans, and the lender made it nearly impossible for car buyers to remove them.
> A complaint hotline was staffed by employees instructed not to cancel the products until a consumer asked three times, and then to tell callers they needed to write a letter. The lender “directed customers to dead-end cancellation hotline, withheld refunds, and knowingly tarnished credit reports with false data,” the order by the Consumer Finance Protection Bureau (CFPB) found.
> Last May, the acting CFPB head, Russell Vought, terminated the payout agreement, part of sweeping changes that have gutted the agency, which was set up after the financial crisis to oversee financial firms and has returned $21bn to consumers.
Maybe the problem is attempting to regulate at that scale to begin with.
Of course, Americans also have much worse privacy rights than Europeans do, Chat Control notwithstanding. GDPR gives Europeans the right to delete their personal data. In the US, data brokers routinely launder highly personal information about Americans and nothing is done. Good luck figuring out how to delete that.
It's relevant to demonstrating a failed government, however.
> Of course, Americans also have much worse privacy rights than Europeans do, Chat Control notwithstanding.
Other than that, Mrs. Lincoln, how was the play?
> Europeans the right to delete their personal data. In the US, data brokers routinely launder highly personal information about Americans and nothing is done. Good luck figuring out how to delete that.
Good luck figuring out how to delete it from the databases of foreign companies even if you're in Europe. You think companies in China are complying with any of that when you have no way to prove whether they are or not?
That's why the only thing that works is ensuring they don't have your data to begin with, i.e. E2EE. Trying to regulate what they do with it once the cat is is out of the bag is too late.
I think this is pretty grossly overstating things. Yes, chat control is bad, but there's little doubt in my mind that EU regulations overall have been better for consumers than the situation in the US.
But I see that tenet degrading in various ways - how we broadcast our views on social media (reduced empathy), how we interact in the real world (less patience and understanding), the polarization of our politics (less compromise and thus less effectiveness), and how organizations treat their customers (even basics like Terms of Service and Privacy Policies that have trended much more user-hostile over the last decade).
Cooperation is the fundamental basis on which civilization is built. I'm not sure what the start of a dark age looks like, but part of me feels like over the course of my lifetime I may be witnessing us entering one.
I fervently believe it's not too late to correct course, and I'm interested in ways individuals can have an impact. Set a personal example. Push back against dark patterns proposed by your corporate colleagues. Instill a deep sense of responsibility and healthy skepticism in your children. This is just a start, and I'm open to more suggestions.
The good thing is we don't need everybody to do this. Even a small percentage can build momentum. So speak up and back up those who do. It makes it easier for others and causes people to be more nervous to float unethical ideas.
Western civilization has been built on exploitation not not cooperation, it's stil an open question if we can build a cooperative society, my guess is no.
- Singapore pre-1965 was a low trust, racist society. The tensions were so bad that in 1964 there were racial riots.
- Today, after a lot of immigration, within 1-2 generations, Singapore became a high-trust society.
Similar stories in South Korea and Taiwan. In all 3 cases, the trust came recently, within 1-2 generations, and from different approaches of the state. They combine high institutional trust and the economic prosperity with medium-low interpersonal trust.
A reasonable comparison would be to look at "Ethnic European", covering roughly 1.2 billion people.
> london's trust level and prosperity have become a shadow of their former selves
As someone who traveled the world a bit and lived for a decade in London, I'd beg to differ without further elaboration.
I think a large set of problems have come from this statement. We have, over time, become more intolerant of other cultures which is directly related to trust. Excluding the other isn't the path we need to take. We need to get back on the path where we can include other cultures.
Counter point: culture has been compressed, not widened, in the last 60 years.
Accents have gone away, we listen to the same music, food has homogenized. By almost any measure, culture across the US has become a monoculture compared to any time in its history.
I don't think your point is necessarily wrong, but how do you square the above?
The Georgia study largely attributed it to migration and people moving more than they used to, with a focus on growing metro areas in the south. Though apparently some younger generations are trying to shed their accents to sound more professional, and the internet is creating a sort of average American accent.
Though nobody is worried they'll disappear entirely at the moment that I can find.
Fascinating! Thanks!
But with the rise of Trump through the mid-to-late 2010s, it became much more widespread and broad in scope: Dignity, respect (in the sense of "treat other people like humans"), and politeness are all "woke", and all that matters is me, me, me. Being a bully is the highest form of social capital.
And now with enshittification spreading to all our commercial services, the same basic ideas are expanded to the corporate realm. Customers are just numbers; "customer service" is for bots to provide; lock them in so they can't leave and it doesn't matter how terrible the service is.
It's not just cooperation that's needed—though you're absolutely right that it is the basis for our entire civilization; it's respect and dignity. Treating everyone you meet as if they're someone whose daily experience you care about, at least inasmuch as your interactions with them affect it.
It's never too late to shift a culture, and individuals can make an individual difference—very much in the sense of the old story about the girl throwing starfish back into the sea. But what's really needed is a cultural movement to restore dignity to our interactions, and I'm afraid I'm clueless as to how one starts one of those.
Also the design choices suck; I have always accidentally ordered to the wrong address because Amazon uses a "default address". A good rule of design; assume that the user doesn't think about things that they don't explicitly select.
They also just advertise cheap crap and the app is so maximalist it feels more like a casino with all the lights and buttons.
Can we get a competitor please?
In an market economy the market can make efficient decisions about investment, production, and the distribution of goods and services to consumers, guided by price signals created through the forces of supply and demand. But the market can not prevent companies from forming an oligopoly or a single company winning the competition race and becoming an monopoly, only the goverment can.
"In 1999 a coalition of 19 states and the federal Justice Department sued Microsoft. A highly publicized trial found that Microsoft had strong-armed many companies in an attempt to prevent competition from the Netscape browser. In 2000, the trial court ordered Microsoft split in two to punish it, and prevent it from future misbehavior; however the Court of Appeals reversed the decision and removed the judge from the case for improperly discussing the case with the media while it was still pending. With the case in front of a new judge, Microsoft and the government settled, with the government dropping the case in return for Microsoft agreeing to cease many of the practices the government challenged."
https://en.wikipedia.org/wiki/History_of_United_States_antit...
From small business to big shopping centers, online resellers,...
I know multiple people who don't buy from Amazon because they think Amazon is undercutting the competition. I don't buy from Amazon, because other markets are more competitive and have lower prices. The chance of Amazon having a lower price than eBay or Aliexpress are so low that it's not worth my time to look.
I should probably just switch to them
Don’t shop on the internet. Shop in the real world.
Warranties aren't worth the paper they're printed on. Every warranty claim I've made in the past 5 years (a fair few) has been a Kafka-esque nightmare of bouncing back and forth between reps who don't understand the issue, callbacks at inopportune times because of failure to understand timezones, and waiting for things to ship back and forth between repair centres across the country or overseas. Customer support is carefully crafted to be set up to fail, while still maintaining the plausible deniability of Hanlon's Razor. You may eventually get your widget repaired or replaced, but it'll cost you as much in time, effort, and frustration as it would have to just buy a new one. This is of course deliberate, but you'll never prove it. Companies exploit people's politeness and aversion to conflict by telling polite customers that there's nothing that can be done. You get nothing unless you dig your heels in and get combative with the rep who is just doing their job. And the consumer protection agencies are toothless tigers.
So now I don't buy new products unless there's no other option. Previously, buying new meant a product you could trust, and an assurance that they'd take care of you if something went wrong. Since that contract is broken, I see no point buying new. Especially not when last year's model often has more features, fewer anti-features, and better repairability than the current one. I'm not the only one responding like this: The snake cannot eat its own tail forever, and these companies will eventually discover that if they keep making their products shittier and shittier then people will just stop buying them. Especially once new competitors who need to build a reputation start to eat the established brands' lunches.
I was astonished when I asked a question and the guy did actual research, called back and told me things that a simple Google search on my end wouldn't have find.
Usually it's very different, they either don't know/don't care or say things that are obviously false.
I believe it's also why Amazon took so much in popularity. If I got an issue with Amazon product, I know it well be dealt with swiftly, as long as it's sent by Amazon and not by a third party.
1) Contact the organisation
2) Suggest a resolution
3) give them a reasonable time to respond (ie. not forever)
4) Be polite
5) Lodge a complaint with Fair Trading
The more people that do this, the less sellers will try to do people over.
https://www.nsw.gov.au/legal-and-justice/consumer-rights-and...
In practical terms, if it's an online business with no Australian presence it makes it hard to apply the law. Overseas online companies with an Australian presence, such as Amazon, have been successfully prosecuted [1,2,3]. The ACCC is still working through responsibility for third-party sellers, but it seems to be the case that if it is fulfilled by Amazon then it is responsible.
[1] https://www.accc.gov.au/media-release/amazon-in-court-for-in...
[2] https://www.abc.net.au/news/2026-05-29/accc-sues-amazon-butt...
[3] https://www.accc.gov.au/media-release/accc-issues-takedown-r...
[4] https://www.choice.com.au/shopping/consumer-rights-and-advic...
"Rage" is has been encouraged and reinforced as an appropriate reaction to what is most likely a simple mistake or process breakdown. Another way that social media and algorithmic feeds have pandered to our base emotions. We are becoming a world of tantrum-throwing toddlers.
I think this needs justification. My status quo is to believe that most times I have a problem when dealing with these large corporations that they've made any process for getting support or remediating what _should_ be a simple process breakdown is a labyrinth of steps to make it as difficult as possible to reach any sort of remedy to discourage you from even trying. People are raging because calmly asking for assistance doesn't work, the only way to pierce through is to make a scene big enough that it risks reputational damage to simply get the attention that every individual deserves.
It doesn't have to be either of these things to be intentional. Pretty much every large system is too complex to be calculated or personal in the way we would apply those terms to a human. However, you can still describe a system as having values and goals, still analyse it in terms of its incentives and the mechanisms it evolves to achieve them in its environment.
The incentives are continued YoY growth, the environment is a saturated market, and so the mechanisms are monopolistic and anti-consumer practices. "Go to the Xfinity retail store" doesn't prove anything except that you passed an effort gate, segmenting you away from someone working two jobs with young children at home. 1% of customers costing the company $10 is the same as 100% of customers costing them 10c, with the added benefit that your segment is more likely to hurt retention than the one with no time or energy for comparison-shopping.
Did a single person design and orchestrate this state of affairs? Unlikely, but the company as a whole is more than capable of blobbing its bureaucratic way towards more efficient digestion of your funds. Never underestimate dumb optimisation processes at scale. Given enough time, such processes have turned monkeys into Shakespeare.
The first is justified. The second is understandable but a case of confusing it with the first. The last two also happen, and are not justified nor understandable.
Unfortunately there is currently an excess of the first case. I think people are arguing this is a problem. It probably causes the other 3 to happen more too.
Yes I have, yes I have, yes it is, it absolutely is calculated, but you're right it's not personal.
It's "just good business"
But it absolutely is calculated. I've been in those rooms when those calculations were made. I've resigned in disgust when my pleas for them to show some humanity were ignored so they could continue turning the screws on their customers
You're absolutely wrong. It's calculated as hell
It's insane. I've watched so many people ridicule basic descriptions of utterly mundane predatory business strategies as "conspiracy theories" who I know for a fact have sat in meetings planning (or being told to implement) them.
I think that middle class professionals are so deeply in denial that they don't believe that they themselves exist. The avoidance of the moral consequences of their own work blinds them to anything that reminds them of what they do.
I don't blame people too much though. I'm pretty lucky to be in a place in my life where I can afford to comfortably resign in protest if I don't like what my bosses are doing. Not everyone is that fortunate, so I get it and I don't blame those people
My beef is with people who are never satisfied and maybe never can be satisfied. People who have enough money to retire literally today and still enjoy the rest of their lives... But instead they keep doing everything they can to make more and more money for basically no reason other than "I have a bigger number than you do"
These are simply weird declarations that you're making, and 20 years ago the world was not like this.
> It's a process scaled to deal with thousands or millions of people.
You're saying this as if there weren't thousands or millions of people 20 years ago.
> I go to the Xfinity retail store and talk to someone. I almost always leave satisfied.
I've never seen an Xfinity retail store in my life. I guess we have to wait until they close them all for you to stop patronizing people. Everybody here understands how businesses work, and we also understand why they cut services and quality. People are not confused or ignorant, they're angry that they don't have functioning governments, so these companies don't have to compete anymore.
Cheap goods have always been junk. Buy less, better stuff. Buy once, cry once.
Considering cheap "junk" from China has gotten a heck of a lot better and competitive.
However the average good in the US has been overly inflated.
"Simple mistakes" and "process breakdowns" were uncommon, notable, and dealt with quickly. Even the cheap stuff tended to last for quite some time, and was often repairable when it failed.
Enshittification is not only real, it is accelerating.
This reliably elicits the response they claim to want to avoid -it feels designed to prime the caller for anger.
E.g., "keep the calls as short as possible".
There are so many beautiful parks. There are so many experiences to be had away from sources of rage & frustration.
But you won't find it from a publication that depends on your rage addiction.
And that is because you let it.
There's probably a name for the bias.
On the East Coast at least, parks are for loud people to play music, they're full of litter, dogs running around, and a general American distaste for peace and beauty and quiet contemplation. We Americans love function, profit and socializing more than we value beauty.
We Americans loathe quiet, contemplating, reading, and taking things in. It's a waste of time that could be spent doing something productive.
At least they're complaining about systems and trying to think about how to regulate or change them. You're just complaining about your neighbors.
No. I don't want to go anywhere anymore. All the sidewalks are full of SUVs, blatantly blocking my way even though it's prohibited.
Police is looking the other way.
City council doesn't react to inquiries because (as stated in the protocol of one of the meetings) "complaints sent by citizens are anecdotal anyway, and they tend to be concerned with just the one street where they live."
I try to avoid leaving the house as best as I can. Going outside has become pure rage fuel for me.
Everything is a fucking scam.
And often also a subscription for something that doesn't warrant being a subscription, and signing up is one click, cancelling is a written letter or a 3 hour long phone call (because see again the part where "Everything is a fucking scam").
I've been traveling a bit lately, and (again, it seems to me) that the US is trapped by "exceptionalism". They are the self-proclaimed best at everything all the time. If that's the starting point, then improvement seems impossible.
I can only conclude that consumers are treated badly in the US simply because they want to be.
I don't mean to be flippant. I mean that it the US people (as a majority) vote against their own interest. A majority looked at a candidate who was an obvious grifter, who ran on a policy of gutting consumer protections, and said "I want that".
A majority looked at a man, obsessed with personal gain and transactional relationships, who constantly rewarded business over consumers and said "I want that."
The entire premise of the MAGA movement is to return to an era of limited company oversight, reduced voter franchise, poorer population. The very heart of it is taking a chainsaw to the state that grew around protecting people from robber barron's.
And this runs deeper than personality. More than half a nation, and all levels of govt, support a party that overtly supports business over consumers. They reduce taxes (for the rich), they bloat the deficit, they erode protections.
Therefore I think it is this way because deep down Americans want it this way. They are easily convinced that "both sides are the same" or "cutting taxes for rich people is good for less-rich people", or that "if you vote our way you'll be a billionaire like me".
Ultimately the US is the best at everything. To claim improvement is possible is, well, frankly Unamerican. To learn from anyone else is to suggest a weakness, when clearly there aren't any.
When in doubt, everyone suggesting that things can be better is obviously a communist. Because that's the only alternative to the status quo.
Go to a restaurant. Oh you better tip 20-30-50% (Because thats how they hide the bill, and put the lowest value on there). Bad service? YOU MONSTER YOU TIPPED 15% (15% is standard, and on top of higher prices- that is more money.. service+restaurant owners basically forced a 5%+ pay raise for no value). On top of that.. oh no menus.. get your own device so you can order from us.
Walk into a grocer.. no cashier so you can avoid the stupid self checkouts, oh wait now they want you to comply to scan to get out. Don't do that you'll get some employee trying to lecture you about "required behavior". (That was in the Freiberg (Germany) grocer) Not doing that. (Also apparently thats in the Edeka in the Munich airport as well)
Go to Walmart, they brought back receipt checkers at times. And they get pissy when you tell them to go pound sand.
Overall, security guards at these places have such an ego and power trip that affects the average honest customer.
Removing checkout staff for self checkout machines that grade and judge you on your cashier role. Yet you don't get paid.
Let's not forget that Walgreens over exagerated the loss.. and then ramped up their money recovery systems to lock up items + raise the prices. Then they admitted they were crappy.
But see, this is the problem with tipping: it's all informal, so what's "standard" can only be determined by actually talking to people and getting an overall average. I bet there are a lot of people who still think the "standard" is 15% (as it was through most of my life)—or even 10%.
I think the vocal minority advocating for tipping are probably the ones that receive (unaccountable) higher tips while the ones that are scraping by would actually feel more comfortable with a good wage than unpredictable tips.
The picture you paint of there being a "vocal minority advocating for tipping...that receive higher tips," at the expense of those who want good wages, suggests that you have very little contact with the type of people who work these jobs. Absolutely, all of them would love good wages. But that's not something they have the power to push for (because labor power in the US is abysmally low, and frequently vilified as if corporations were the entities the country—nay, the entire world—is set up to serve, rather than human beings).
So rather than snidely grumbling about how greedy these people are who want tips, instead of good wages, maybe put that energy toward telling your representatives you want a higher minimum wage? ...Or are you also one of those who thinks that minimum wages are counterproductive and will necessarily be inflated away (despite the fact that many locales, in and out of the US, already have higher minimum wages, and are thriving for it)?
I.e. costco introduces self checkout, don't use it, then they start putting people to pester you to use it/try to check your card before you get to where you need (because non-members use self checkout), then they introduce door checking of membership.. all of this is over their desire to reduce staff in the store and force self checkout.
> [..] the seminal 1976 White House Study that provided a host of provocative and first-ever insights about American customer care and its potential for profit-making. [..] corporate America is not getting the bang for its buck spent on customer complaint handling that is indeed possible. Billions of dollars in potential revenue continue to be lost [..]
The guardian never disappoints framing this whole series around the study of some og consulting business. Who needs conservative media when this is the leftmost mainstream outlet imaginable?
Edit: 1/2 right, it's also shit service.
We stopped making good products at some point
If the handle is wooden… everyone knows wood won’t survive a dishwasher.
If it’s metal, then yeah, that can work. That is, fortunately, easy to spot when you’re buying them… but the kitchen store in my city doesn’t have any knives that are all-metal and hold a decent edge.
(Except some overpriced Japanese ones I skipped over on basis that the metal is so hard it would be easy to damage them by accident. And I don’t need to do the “cut paper in half by dropping it” trick.)
not true if all the other knives on the market at that price have the same performance, in which case that's just "the price of such a knife." in order to have paid too much there needs to be cheaper options with the same or better performance.
“Paid too much” from a consumer standpoint doesn’t need to have viable cheaper options. It’s about consumer expectations and results. If eggs in the grocery store cost $20/dozen, and you as a producer are taking a loss at that price because your producer costs arw $2/egg, consumers will still say they are paying too much. Because the expectation is coming from a market where a dozen costs $5-8.
Here's a weird and mild anecdote. I have enjoyed using a combo duvet cover and covertlet, it works all year around, you can put the winter comforter in it, or it's heavy enough to use by itself. Used these for years, ordered from Amazon and BB&B. I spent a lot of time recently looking at the same thing. It was called Vue by Ellery Lifestyles. Eventually Google explained what happened - private equity gutted it in a classic tale of how private equity squeezes and destroys companies. Will spare you the boring but the gist:
(company is from 2010 or so)
"In 2017, Ellery Homestyles (the actual manufacturer of Vue) began aggressively restructuring and acquiring other bedding assets (like Extreme Linen) to scale up for massive digital and omnichannel retail.During this corporate scale-up, older multi-piece specialty sets like the 2-in-1 Barcelona coverlet were phased out to make room for high-volume, mass-market designs.Eventually, Ellery Homestyles' brands were absorbed into even larger manufacturing parents, like home textiles giant Keeco"
<.. headwinds >
"The final blow to the brand's original identity came when Keeco’s private equity strategies ran into severe financial headwinds. Keeco aggressively loaded up on debt to merge with a bankrupt competitor, Hollander Sleep Products, in 2022. When major customer Bed Bath & Beyond went under, Keeco was left holding massive debt.To handle this, their private equity backer, Centre Lane Partners, executed a classic PE maneuver in early 2025: a corporate carve-out.They split the company in two. They rebranded the core utility bedding business as Live Comfortably and threw the struggling fashion bedding/window division into a separate sister company called Simply Interior Homes.
By June 2026, the newly formed fashion division filed for bankruptcy, with court filings explicitly stating that the private equity carve-out left the fashion business severely underfunded and hollowed out. Private equity essentially treated the brand exactly how the playbook dictates: it funded its initial growth, rolled it into a massive $1 billion corporate conglomerate to eliminate manufacturing complexity, and finally carved the company apart when debt mounted. The high-end, 100% cotton Vue Barcelona set was a casualty of a system designed to favor mass-production efficiency over specialty textile design."
Your grandpa could afford a house and family, but he’d never have been able to afford something so wonderful and life changing! US consumers should stop complaining and realize that those starving children in Africa can’t afford such TVs and they should shut up and be happy with what we give them.
Impeding an organisation's right to scam customers is un-American and one step away from tyranny and communism.
edit: /s
In many markets the market is too consolidated and the consumer doesn't actually have an option that isn't a scam, but in those cases the solution shouldn't be to regulate the oligopolies while leaving them in place to buy off the regulators or weasel their way out of the rules with expensive lawyers, it should be to break them into smaller pieces so they actually have to compete with each other.
In other markets there is competition, but in those markets the competition actually works. As soon as you have enough suppliers that at least one of them isn't scamming the customer, who is going to patronize the other ones by choice?
I wonder what the world would look like if you just prohibited any single organisation or controlling group over a certain size. Say you couldn't have a company over 100 million in value.
You could still have massive projects like semiconductor fabs and steelworks but they would have to be collectives of dozens of (competing) smaller companies. Efficiency may take a hit especially in the verticals but would it be be outweighed by greater market dynamism as no one company can dominate a sector and crush out competition and innovation?
Maybe provide a tapered relief for worker salaries and/or capital outlay to encourage employing people and building things rather that hoarding cash in financial structures.
Obviously this is impossible to do as the global system stands, but I find it an interesting thought experiment.
What you want is a maximum market share percentage, and for it to be something like 20%, with the market definition never including products that aren't actual substitutes for each other, e.g. the market is never "brake pads", it's "brake pads for Honda Civic", but that could still have a dozen independent suppliers or more.
> Efficiency may take a hit especially in the verticals
It's not obvious that this is even a thing at that scale. Economies of scale (amortizing fixed costs over more units) have diminishing returns once the fixed cost contribution per unit is already small, whereas diseconomies of scale (bureaucratic overhead, entity size exceeding Dunbar number, office politics, etc.) gets worse with size, and the latter comes to dominate long before anything reaches the scale of a global monopoly.
> Maybe provide a tapered relief for worker salaries and/or capital outlay to encourage employing people and building things rather that hoarding cash in financial structures.
Let worker salaries always be deducted in the year they're paid out instead of the existing nonsense where R&D money which is already spent can't immediately be deducted.
> Obviously this is impossible to do as the global system stands, but I find it an interesting thought experiment.
Why is it impossible to do? The US or EU alone or any large enough coalition of other countries together could make the rule apply to anyone who wants to sell into that market, because they have an economy large enough that either the incumbents would comply or having excluded them for not complying, the market size would be enough to sustain new domestic suppliers.
Perhaps you meant "their (sarcastic) implication that the only solution is regulation is the problem"? I would agree. I just chose one thing to use in my sarcastic comment and believe there are multiple solutions – I'm glad it's sparked a sub thread.
In this case, nobody really thinks that a market where you have an oligopoly with few alternatives that are all scamming you is any good. But the problem there is the lack of competition rather than its presence, and the markets that actually have vigorous competition do pretty well.
> In this case, nobody really thinks that a market where you have an oligopoly with few alternatives that are all scamming you is any good
Voters have supported politicians that have implicitly or explicitly supported conditions to enable oligopolies: reduced r or no competition/market authorities, weak M&A oversight, increased subsidies, regulatory capture, etc