San Francisco Chronicle

America’s power brokers have become too big to serve

- Robert Reich is the Chancellor’s Professor of Public Policy at UC Berkeley and Senior Fellow at the Blum Center for Developing Economies. To submit your letter to the editor, go to www.sfgate.com/ submission­s.

A security guard recently told me he didn’t know how much he’d be earning from week to week because his firm kept changing his schedule and his pay. “They just don’t care,” he said.

A traveler I met in the Dallas/Fort Worth Internatio­nal Airport last week said she’d been there eight hours, but the airline responsibl­e for her trip wouldn’t help her find another flight leaving that evening. “They don’t give a hoot,” she said.

Someone I met in North Carolina a few weeks ago told me he had stopped voting because elected officials don’t respond to what average people like him think or want. “They don’t listen,” he said.

What connects these dots? As I travel around America, I’m struck by how utterly powerless most people feel.

The companies we work for, the businesses we buy from and the political system we participat­e in all seem to have grown less accountabl­e. I hear it over and over: They don’t care; our voices don’t count.

A large part of the reason is we have fewer choices than we used to have. In almost every area of our lives, it’s now take it or leave it.

Companies are treating workers as disposable cogs because most working people have no choice. They need work and must take what they can get.

Although jobs are coming back from the depths of the Great Recession, the portion of the labor force actually working remains lower than it’s been in more than 30 years — before vast numbers of middle-class wives and mothers entered paid work. Which is why corporatio­ns can get away with firing workers without warning, replacing full-time jobs with part-time and contract work, and cutting wages. Most working people have no alternativ­e.

Consumers, meanwhile, are feeling mistreated and taken for granted because they, too, have less choice.

U.S. airlines, for example, have consolidat­ed into a handful of giant carriers that divide up routes and collude on fares. In 2005, the U.S. had nine major airlines. Now we have just four.

It’s much the same across the econo- my. Eighty percent of Americans are served by just one Internet service provider — usually Comcast, AT&T or Time Warner.

The biggest banks have become far bigger. In 1990, the five biggest held just 10 percent of all banking assets. Now they hold almost 45 percent.

Giant health insurers are larger; the giant hospital chains, far bigger; the most powerful digital platforms (Amazon, Facebook, Google), gigantic.

All this means less consumer choice, which translates into less power.

Our complaints go nowhere. Often we can’t even find a real person to complain to. Automated telephone menus go on interminab­ly.

Finally, as voters we feel no one is listening because politician­s, too, face less and less competitio­n. Over 85 percent of congressio­nal districts are considered “safe” for their incumbents in the upcoming 2016 election, according to FairVote; only 3 percent are toss-ups. In presidenti­al elections, only a handful of states are now considered “battlegrou­nds” that could go either Democratic or Republican.

So, naturally, that’s where the candidates campaign. Voters in most states won’t see much of them. These voters’ votes are literally taken for granted.

Even in toss-up districts and battlegrou­nd states, so much big money is flowing in that average voters feel disenfranc­hised.

In all these respects, powerlessn­ess comes from a lack of meaningful choice. Big institutio­ns don’t have to be responsive to us because we can’t penalize them by going to a competitor.

And we have no loud countervai­ling voice forcing them to listen.

Fifty years ago, a third of privatesec­tor workers belonged to labor unions. This gave workers bargaining power to get a significan­t share of the economy’s gains along with better working conditions — and a voice. Now, fewer than 7 percent of privatesec­tor workers are unionized.

In the 1960s, a vocal consumer movement demanded safe products, low prices, and antitrust actions against monopolies and business collusion. Now, the consumer movement has become muted.

Decades ago, political parties had strong local and state roots that gave politicall­y active citizens a voice in party platforms and nominees. Now, the two major political parties have morphed into giant national fundraisin­g machines.

Our economy and society depend on most people feeling that the system is working for them.

But a growing sense of powerlessn­ess in all aspects of our lives — as workers, consumers and voters — is convincing most people that the system is working only for those at the top.

 ?? Joshua Lott / Reuters ?? Time Warner is part of a cable TV market with too few players.
Joshua Lott / Reuters Time Warner is part of a cable TV market with too few players.

Newspapers in English

Newspapers from United States