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U.S. households lose $165 billion to the annoyance economy

New York Times Business •
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Stanford economist Neale Mahoney and policy fellow Chad Maisel released a study estimating that U.S. households lose $165 billion annually to what they label the annoyance economy—a bundle of time‑draining hassles such as robocalls, hidden fees, and ineffective chatbots. The figure aggregates wasted minutes and extra spending from tasks that should be straightforward but often turn into drawn‑out ordeals, for flight changes and insurance disputes.

Mahoney, a former Biden‑administration adviser, says many frictions stem from outdated regulation, yet a sizable share are deliberately engineered to trap consumers. Companies that make cancellation difficult see revenues climb 14‑200%, according to the authors. Such practices also erode brand trust, prompting backlash on media. The study also links administrative barriers to health outcomes, noting a 2019 survey where 23% delayed care because of paperwork.

Public sentiment mirrors the data: a 2024 YouGov poll found 87% of Americans favor stricter rules on robocalls, and a 2025 Groundwork‑Data for Progress survey showed two‑thirds of likely voters want Congress to prioritize curbing such nuisances. The authors argue that sustained consumer outrage could pressure lawmakers and firms to trim fees and simplify processes.