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It's bad policy to not allow escalation when a customer is unhappy -- unhappy customers are significantly more vocal than the happy ones and a manager is usually more able to help with problems when a lower associate can't.
On the other hand, my experience when I worked in retail and seeing how the average customer treats the average employee makes me sympathetic enough with employees that I tend to wish they had the authority to make a choice between "escalate call to supervisor" in cases when a customer has been legitimately wronged and "electrocute customer over phone line" for the other 90%. Standard phone lines run at 48v and 25ma, but can carry somewhere in the range of 30,000v at that current without damaging the wires.
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