This is not an irrational fear. This has actually been occurring. There was a time not long ago that the American economy was an job producing machine. Small businesses were the engine driving that machine.
Today, the only jobs that are growing are bar and food service jobs. Look around you. In my lifetime I don't think I've ever seen more restaurants and fast food places as there are now. Everywhere you go, either some strip mall food court, or a cluster of fast food joints.
Outside of healthcare and government there is just not an abundance of good jobs, except perhaps in certain regions of the country such as Silicon Valley. Beyond that, the U.S. economy is churning out millions of low-paying, part-time jobs suitable for teenagers living at home.
While I don't agree with them, the $15 an hour minimum wage demonstrators in part have a point. There is nothing else out there. There is little or no career paths anymore. Statistically, small business are now closing/failing faster than new small businesses are being created. That is a novelty.
So yeah, it's more reality than simple fear.
Now the government never met a merger that they didn't like.
A lot of the “new economy” (bars, restaurants) are just a reflection of the reality that childless working adults government employees are all that is left of the “discretionary dollar” economy. Not only are the jobs crappy, but if $15/hour is forced on employers those workers will be bringing in $15/hour for many years - and they will be the SAME workers because there are few other jobs.