The Democrats and the Zombie Horde

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I’m not gushing with praise about President Trump’s big speech on February 28, but one of his actions on March 1 does make me gush a little. I chose that verb with cunning: it alludes to his signing of an executive order striking down President Obama’s “Waters of the United States” rule, which gave the EPA the authority to harass people who try to do almost anything about the water on their land, even if the water is nothing but ponds or “vernal pools” (i.e., puddles that show up when it rains). And when I say “harass” I mean harass. The EPA has tried to make malefactors pay tens of thousands of dollars a day in fines.

I usually don’t like to talk about social classes, because the Marxists made such a mess of that, but the rule that Trump wants to get rid of is class legislation of a familiar but very pernicious kind. It’s like all the rules that Democrats have made forbidding you from getting the lightbulb you want or building a house near the suspected hive of some rare insect or drilling for oil in some area that no one ever visits but some environmentalist organization has located on a map and now derives financial support for “caring about.” Such rules — such under-the-table legislation — are meant to help well-off people who live in cities have good feelings or to help their kids get jobs “advocating for the environment,” at the expense of people who work with their hands on farms or oil rigs, or who simply want to maintain a decent environment for themselves. This is legislation that takes wealth (whether money or psychic benefits) out of the control of one group and gives it into the control of another group, which is ignored or ridiculed if it protests.

While he talked, the people in the background sat immobile, staring into space, not daring to move a muscle.

The Democratic Party is the main (not the sole, but the main) engine of class warfare in America, and its view of the exploited class — i.e., the broad mass of people who are hurt by its policies, but have to pay for them — has never been indicated so clearly as it was by the Democrats’ response to Trump’s oration. The Democratic leadership has identified what it thinks is the cause of all its problem: older, white, working-class people who live in that strange, virtually unknown region west of the Hudson and east of Hollywood. So it arranged for a retired Democrat governor from Kentucky, who looks about 180 years old, to sit in a diner in his home state, backed by other white people, mainly old, and talk in a strong Southern accent about himself, his religious connections, and his identification with po’ people and the workin’ class. While he talked, the people in the background sat immobile, staring into space, not daring to move a muscle. This, in the professional Democrats’ view, is the Other that must be tricked into continued subservience to us — the Other that can best be tricked by images of itself as a collection of zombies.

Yes, come to think of it, I do believe that Marx might have had something interesting to say about this.




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Manufacturing Hubbub

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American manufacturing is in decline. It has been for decades, shrinking to half of what it was at its peak in 1979. During the 2000s alone, it lost one-third of its workforce — largely blue-collar workers who, without a college education, could still earn a middle-class wage — and, today, its output and employment remain below their pre-recession levels.

Who cares? We still make stuff. And we still have enough money to get the stuff we don't make — from countries such as China and Mexico, at cheaper prices. In an advanced, services-oriented economy like ours, so what if our trade balance (which was in surplus prior to the mid-1970s but has been in deficit since) has plummeted to -$508 billion (-$741 billion for manufactured goods) today? We can always borrow or print more money. Right?

By outsourcing critical engineering and manufacturing expertise, the US is frittering away its industrial leadership.

Indeed, politicians, especially liberal politicians, welcome the decline. America has the coolest companies (Facebook, Amazon, Google, Apple, etc.), run by cool, billionaire geniuses. President Obama, our coolest president, uses them to run his campaigns, promote his polices, tweet his followers (a twitterati of 63 million), and post his selfies. America's future lies with these energy-efficient, planet-friendly, high-tech giants. To the liberal elite, America can do with fewer factories, even ones making things that America invented. Besides, factories pollute and warm the planet.

Except that America is now losing its high-tech manufacturing dominance as well. By outsourcing critical engineering and manufacturing expertise, the US is frittering away its industrial leadership, eroding what once was the world's font of scientific discovery, technological advance, and product innovation, and guaranteeing future decay. In a 2009 Harvard Business Review article (“Restoring American Competitiveness”), it was noted that "Beginning in 2000, the country’s trade balance in high-technology products — historically a bastion of U.S. strength — began to decrease. By 2002, it turned negative for the first time and continued to decline through 2007," reaching -$53.6 billion. Today, it has dropped to -$81 billion.

This development has even alarmed the Center For American Progress (CAP), which attributed the deterioration to "the dramatic difference between U.S. innovation policies and those of our global competitors." The high-tech trade deficit "finds its roots in the negligence of our innovation policy," claimed CAP, which, after deep liberal think-tank thought, recommended "a strong policy response." Maybe, liberals suggested, a Department of Innovation is what this country has needed all along — one with strong policies, not those negligent ones.

In President Obama's first Hub, a handful of highly paid computer engineers diligently work to develop machines that will eliminate countless blue-collar jobs.

CAP's prescription may have been what caused President Obama to spring into action with his Manufacturing Innovation Hubs, to "create high-quality manufacturing jobs and enhance America’s global competitiveness." The idea is to bring industry, academia and, of course, government together into a joint effort to convert scientific knowledge into jobs — "a steady stream of good jobs into the 21st century," said Mr. Obama.

The first such hub, America Makes, opened for business in October 2012 in the Rust Belt city of Youngstown, Ohio. It focuses on 3D printing, and will be used as a model for subsequent hubs. As many as 45 hubs are planned, with projects that are intended to have a multiplier effect: each job created will support 1.6 other jobs, outside the factory. A Reuters article described the facility as "a sleek new laboratory" housing "a Silicon Valley-style workspace complete with open meeting areas and colorful stools." Inside, "Several 3-D printers hum in the background, while engineers type computer codes that tell the machines how to create objects by layering materials." That is, a handful of highly paid computer engineers diligently work to develop machines that will eliminate countless blue-collar jobs.

As of March 2014, when the Reuters article was published, none of the six businesses participating in America Moves had hired new workers. But the government component, the National Center for Defense Manufacturing and Machining (an organization funded by the US Army, i.e., funded by taxpayers), which manages the project, had hired ten. At this rate, 450 jobs will have been created when all 45 hubs are operational, soaring to 1170 jobs once the multiplier effect kicks in.

To be fair, it’s too early to tell how much of a dent, if any, Obama's struggling Hubs scheme will put in the 5.7 million manufacturing jobs that have been lost since 2000. For example, at a similar stage, the success of Obama's green economy scheme could not be determined. But after spending billions of dollars on green manufacturing companies such as Solyndra (solar panels), Nordic Windpower (windmills), and A123 (lithium batteries), all of the green jobs that were created ended up in China — which now manufactures all of our high-tech solar panels, windmills, and batteries. Whoops, bad example. But at least the Hub jobs have not left America, yet.

In 2011, Mr. Obama — the man who said that he wakes up every morning and goes to bed every night thinking about jobs — held a “town hall” meeting at Facebook, to discuss his economic policies. To Obama, Facebook is especially cool. Its young multi-billionaire CEO, Mark Zuckerberg, wears a hoodie to work. Its 500 million users (at the time) were available to watch Obama pal around with Zuckerberg, who "offered questions submitted online that gelled with Obama's key talking points and victories."

To Obama, factories are hulking, dilapidated buildings where glum Americans used to work, producing goods the world used to buy from us.

No one asked why — if Mr. Obama cared about creating jobs, in general, or manufacturing jobs, in particular — he didn't choose a company like Boeing, which, in 2011, was comparable in value (about $50 billion) to Facebook? Boeing — which is the only remaining American manufacturer of large jetliners in our declining Aerospace industry — employed 160,000 workers. Facebook, which apparently manufactures little more than narcissism and low self-esteem, only employed 2,000, all of whom, no doubt, gelled with Obama.

Factories, on the other hand, do not gel with Obama. To him, they are hulking, dilapidated buildings where glum Americans used to work, producing goods the world used to buy from us. That is why the regulatory policies he supports are designed to ensure fewer factories. The annual cost to comply with federal regulations for the average US manufacturing company is almost $20,000 per employee, twice that of the average US company (manufacturers included). For a small (<50 employees) manufacturing company, perhaps an innovative startup firm inspired by an Obama Hub, the cost is almost $35,000.$35,000! So much for global competitiveness.

Factories provide middle-class jobs for blue-collar workers. And, at $77,506 per year ($37.26 per hour), the average compensation for US manufacturing workers, millions of jobless Americans would like to see more of them — and may have wondered why Mr. Obama chose an Amazon fulfillment center as a venue to pitch middle-class jobs. Amazon is where middle-class jobs go to die.

Most of Amazon's 150,000 employees are seasonal workers — 80,000 of them hired just last year — who make $10 to $11.50 per hour, when there is work. Known as "pickers," they scurry about "the massive warehouses plucking item after item for shipment" and are paid no more than Walmart's "lumpers," who scurry about loading and unloading trucks all day. A smattering of Amazon employees, the ones with the good middle-class jobs ("the skilled direct-hire positions, like supervisor or forklift operator — the sort of gigs hyped during a high-profile visit by the president") shared Obama's stage. The pickers were offstage, scurrying. The slowest scurriers are discarded at season's end, or sooner; the fastest are rewarded with full-time employment, where they can earn as much as $27,000 per year, for as long as it takes Amazon to find robots that are faster.

Of Obama's visit, the White House asserted, “The Amazon facility in Chattanooga is a perfect example of the company that is investing in American workers and creating good, high-wage jobs.” No wonder he brags about the record-breaking number of fast-food and service jobs that his economic policies have created. He thinks they are high-paying, middle-class jobs.

Obama thinks that a steady stream of $27,000 service jobs is thrusting the economy in the right direction.

High-tech companies such as Amazon, Google, and Facebook, as important as they are to our economic power and prosperity, are not the places to go for middle class job creation. The American manufacturing industry is a much better bet. Existing US manufacturing companies would export more products if they were allowed to compete on a level playing field with foreign trading partners. Subsidies and tariffs are not needed. They would hire more workers, if they expected higher profits — profits now eroded by excessive taxes and regulations. A steady stream of $77,506 manufacturing jobs would stimulate the economy, increase tax revenues, reduce the trade deficit, and do many other substantial things.

Despite almost seven years of economic stagnation and the rise of a vast underclass of Americans stuck with lousy jobs, Obama thinks that a steady stream of $27,000 service jobs is thrusting the economy in the right direction. US manufacturing, hobbled by his trade, tax, and regulatory policies, needs only a nudge from his manufacturing hubs.

But it's not clear that Obama's Hub program is the place to go for good manufacturing jobs either. After all, it is a scheme whose principal objective is to invent and develop machines that will eliminate manufacturing jobs. Then there is his bizarre fascination with high-tech companies that either employ a very small number of the high-wage, high-skill elite or very large numbers of the low-wage, low-skill drudge.

His Hub scheme may indeed help US manufacturers. They would certainly welcome any technology that increases their productivity and profits — especially if it was paid for with taxpayer money instead of company R&D funds. Companies such as Amazon may already have agents salivating in the demonstration areas of the robotics hubs, looking for faster pickers. But peering inside a future factory spawned by Obama Hub technology may surprise even Mr. Obama.

These factories will not create the "steady stream of good jobs into the 21st century" that he had hoped for. Rather, they will create a flood of lousy, underclass jobs — the scurrying human labor needed to feed parts and raw materials to Obama's deft, voracious machines, and relieve them of their prodigious yield. All the jobs in such a factory will be held by these pickers and lumpers, except for one: the cool job held by a geeky-looking guy from an elite engineering school, who runs the factory computer system and earns a six-figure salary. He wears a hoodie and fastidiously controls every function performed (by both scurriers and machines) for the entire operation, from his colorful stool. He gels with Mr. Obama.




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Americana, Boom and Bust

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Making a documentary is a lot like planting a seed you find in the yard; you don't know what you're going to get until after you start filming. When director Lauren Greenfield began filming The Queen of Versailles, real estate was at its height as an investment, and timeshare mogul David Siegel was a billionaire. He and his engineer turned model turned beauty queen turned trophy wife Jackie were building the largest private home in America: 90,000 square feet, 30 bathrooms, two sweeping formal staircases leading to the pillared ballroom, and more bedrooms than Jackie could count.

What could anyone possibly need with 90,000 square feet of house, you might well ask. Well, you have to put the kids' ice skating rink somewhere, right? And maybe someday they'll even take up skating . . . That was the story Greenfield expected to tell. It isn’t quite the story that she ended up with.

At the start, the Siegels were on top of the world as they posed for photographs and preened for their interviews. Siegel’s Westgate Resorts was the largest timeshare company in the world, and its showcase resort in Las Vegas was eclipsing all the hotels on the Strip. Donald Trump complained that he couldn't sleep at night because the Westgate logo shone into his penthouse at the Trump Hotel. David and Jackie both came from humble beginnings, and both were proud of the lifestyle they had come to enjoy: a world full of chauffeured limousines, private jets, celebrity parties, and an overabundance of stuff.

But having "stuff" is not the same as having class. The Siegels’ dream home was patterned (sort of) after Louis XIV's palace at Versailles, but there is nothing regal or even noble about the Siegels themselves. Let's face it: anyone who lives with dog poop on the carpets or takes the limousine to McDonald's is trashy, not classy. Jackie's painfully gigantic breast implants are symbolic of their lifestyle as a whole: overdone and in your face.

The Siegels seem like nice enough people, but I have friends who live in a trailer park who have more class than they do. The film provides a revealing look at this family of ordinary people living in an extraordinary home with unseemly amounts of money to blow on themselves. It's funny, it's shocking, it's sad — and it's fascinating.

A timeshare provides a way of selling the same property 52 times. The purchasers buy one week at a resort and can use that week every year for the rest of their lives, and their children's lives for that matter, as long as the timeshare resort is still operating (which can become a bit iffy). If you get tired of vacationing in that spot, you can trade your week for a timeshare at a resort in another location. On the surface it seems attractive: timeshare resorts are generally nicer and more personal than motels, and it seems like it will save money to own a vacation place rather than rent a room at a hotel. But the purchasers still have to pay "maintenance fees" when they use the timeshares, as well as monthly mortgage payments, since most people just put 10% down when they buy. These "free" vacations get pretty expensive.

Jackie's painfully gigantic breast implants are symbolic of their lifestyle as a whole: overdone and in your face.

So how did the Siegels sell all those timeshares? You can't cheat an honest man, but you can sucker a greedy one. Timeshare operators bait their hooks with the promise of free stuff: free Disney tickets, free Vegas shows, free dinners, free hotel rooms. Like the little fish who thinks he can nibble around the bait and avoid the hook, these potential clients arrive at the timeshare table thinking — knowing! — that they will just spend three hours listening to a spiel in exchange for hundreds of dollars worth of goods. No way are they going to buy anything. But the timeshare sharks know exactly what kind of bait to use for the fish they have in the tank: the ones who feed on “good deals.” So that's how they position their sales marketing — as a very good deal. Taking advantage of the sellers, almost. Very few couples emerge from a timeshare office without a contract — and a mortgage — for a lifetime of vacations.

Of course, the sales reps don't want to think of themselves as predatory sharks. So Siegel gives them a different spiel. He baits them with statistics showing how going on family vacations regularly saves lives and marriages. He conveniently ignores statistics showing that consumer debt strangles families and destroys the same lives and marriages. The thing is, Siegel seems to believe his own statistics, citing the thousands of people who earn a living because of his empire. One would expect him to have contempt for the people he suckers, but he seems genuinely to believe himself when he insists, "I save lives." If he's a shark, he has convinced himself that he is a nurse shark, dosing his patients with the healing balm of a week in Las Vegas or Orlando every year.

Then — with unforeseen effects on the documentary — came the fall of 2008, and with it the fall of the economy in general and of real estate in particular. Suddenly the easy money that Siegel's company had relied on dried up. Without mortgages, new clients could not purchase the timeshares. His existing clients could not keep up with their own mortgage payments. His employees went from the sales table to the collections department. It was not a happy time for anyone at the company, and it shows on their faces as they call clients to ask for payments.

The Siegels got caught in the same overextended net, and found themselves unable to keep up with their own mortgage payments. At the height of his success, David employed 6,000 people (19 of whom were maintaining his house and nannying his children). He needed a constant stream of sales to service all those salaries. But when mortgage money dried up, so did sales. In the post-2008 interviews, he is pensive and withdrawn, no longer the gregarious host. "I never took anything off the table," he recalls. "I put it all into the business."

Even more damning is his admission about the lake property that he and his wife once owned free and clear in pricey Isleworth, an exclusive community in Orlando with the likes of Tiger Woods and Shaquille O'Neal as neighbors. "I paid cash to build our house," he laments, referring to the 26,000-square-foot house where they lived while Versailles was being built. "Then I borrowed against it to expand the business." Siegel did not erect a legal wall between his company and his personal holdings, as wise business owners do. He foolishly did not realize that the house you live in is not an investment. It is a consumer item. A home.

Soon Siegel needs $400 million to save his Las Vegas resort and $100 million to save the unfinished dream home, Versailles. Jackie starts cutting corners by doing her Christmas shopping at Walmart and letting all but two of the domestic staff go. "If I'd known I was going to have to raise them myself, I wouldn't have had seven children," she says, only half in jest, while cooking a dinner of chicken and corn on the cob. She continues to be a compulsive collector of stuff, but it's mostly cheap stuff. She buys three separate "Operation" games for her kids and gives David "Monopoly" and "Risk" for Christmas. (Odd gifts, when you think about it.)

Meanwhile David blows a gasket and refuses to come to dinner when the front door is left open and the lights are left on; "Don't you people care how much electricity costs?" he complains. But the truth is, Jackie's overspending hasn't caused their financial mess; David's overborrowing has. She might have wasted a million, but he has lost half a billion. Jackie repeatedly says that stress is bringing them closer as a couple, but when David is asked point blank if his marriage is a source of strength to him, he responds bluntly and firmly, "No."

Eventually the bank offers the Siegels a way out: let the Las Vegas resort go, so the company will have enough money to keep operating the rest of its holdings, including the house. But David isn’t willing to give up his $400 million in sunk costs, and he is determined not to let the creditors have the crown jewel of his empire. He's stubborn. Or maybe he just believes in fairy dust. At any rate, he seems a broken man. "Aren't we finished with this yet?" he asks the filmmaker. "We're done. I'm done," he declares softly. It's hard to tell whether he means the film, his business, his family, or himself.

When David is asked point blank if his marriage is a source of strength to him, he responds bluntly and firmly, "No."

The Siegels do not appear in what is probably the most revealing and poignant scene of the film. The Filipina nanny invites the camera into "her" house. It is the children's elegant abandoned playhouse, and she has been given permission to use it as her own hideaway. Furnished with a bed, a dresser, and her personal trinkets, it is the place she goes to be alone and enjoy the quiet. In this film about building the largest single-family home in America, she talks about her simple goal: to provide a house for her father. "Owning a concrete house is so important to people in the Philippines," she explains. She has left her own children behind in the Philippines to raise someone else's children and earn money to send back home to her family. "I tried to give that to my father, but he never got his house. Now he's dead. He is in a tomb. I guess that is his concrete house now," she says with a sigh and a tear of resignation.

The juxtaposition of this nanny's simple dream and the dream house of the self-proclaimed queen of Versailles is simple and powerful. The rise and fall of the Westgate timeshare empire is fascinating. The entire film is funny, sad, and revealing. It's an outstanding documentary, one that Greenfield could scarcely have dreamed of when she started making it. Her creation turned out to be the real “Versailles.”


Editor's Note: Review of "The Queen of Versailles," directed by Lauren Greenfield. Evergreen Pictures, 2012, 100 minutes.



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