Our economy is a hellscape for consumers. The United flier is the latest victim. - The ... - 0 views
www.washingtonpost.com/...ted-flier-is-the-latest-victim
oligopoly market fundamentalism consumers economic
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We are told that this is the era of the empowered consumer:
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Better information means more competition, which means lower prices — all features, of course, of an open marketplace ostensibly presided over by a regulatory authority that, while distant, exists to protect our safety.
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This vision is a lie. Air travel is the most concentrated version of an essentially authoritarian experience that can be found throughout today’s economy. We live, work, shop, and travel under a system of grossly asymmetric power relationships, in which consumers sign away most of their rights just by purchasing a ticket and companies deputize themselves to enforce contracts with hired goons.
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It doesn’t help that the Trump administration is rapidly stripping away as many regulations as it can, promising to repeal two for every new one implemented — an ultra-wealthy administration’s attempt to formalize the plutocratic free-for-all that has followed decades of growing corporate power, defined by massive income inequality, regulatory capture, a revolving door between agencies and the industries they oversee, and steadily eroding consumer rights. The empowered consumer is a figment of our imagination.
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Experiences that used to be standardized are being divided into tiers denoting various rights, access and costs. The result is to both pit consumers against one another — as they compete for a limited pool of guaranteed seats on an airplane, for example — and to extract more money out of better-heeled customers.
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If we violate any of the strictures of the contract we’ve implicitly signed by buying a ticket, then the airline — backed with the imprimatur of state authority, perhaps even with the help of local police — has every right to remove us from the plane without apology.
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Survey the economic landscape and you’re likely to find similarly scrambled power relationships. During the foreclosure crisis, banks acted like arms of the state, with local sheriffs becoming the banking industry’s eviction force. Health insurers dictate access to health care for millions while a small coterie of chief executives reaps huge payouts. The telecommunications industry has consolidated into a handful of industry behemoths that maintain regional monopolies
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Increasingly we’re not just paying more for less; we are sacrificing our privacy rights in the process, as personal data has become a huge driver of the digital economy
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Those are the economic costs of this arrangement. The social and cultural costs are harder to define but no less important. As Sandel explains, common experiences become increasingly fragmented and subjected to the vicissitudes of the market: “At a time of rising inequality, the marketization of everything means that people of affluence and people of modest means lead increasingly separate lives. We live and work and shop and play in different places. Our children go to different schools.”