|Calling an Uber Limo with Smartphone Ap|
Perhaps Andrew Ferguson would object to my calling his writings Gonzo-like, because his style is more fluid and maybe he takes a little longer to make a point - but his point in "Bubble on the Potomac" is just as dramatic as Hunter S. Thompson's infamous suicide note:
No More Games. No More Bombs. No More Walking. No More Fun. No More Swimming. 67. That is 17 years past 50. 17 more than I needed or wanted. Boring. I am always bitchy. No Fun – for anybody. 67. You are getting Greedy. Act your old age. Relax – This won’t hurt.It would be nice if the messages inside the "Bubble" won't hurt but hang on, because disgust grows as you read the whole thing, which you should do. Here we go with a "CliffsNotes" version starting with the subtitle and a short introduction:
The new affluence flooding the nation’s capital sets it a world apart from the country it governs.
... these are good times in Washington and the seven counties that surround it. Even as the nation struggles, the capital has prospered, making it a magnet for young hipsters but leaving its residents with only a tentative understanding of how the rest of the country lives. “It’s nice,” goes the old joke about Miami, “because it’s so close to the United States.” Well, Washington is very nice these days.
Every week brings fresh evidence of continuing prosperity: a new restaurant, a new nightclub, another restored 19th century townhouse in a previously dodgy neighborhood selling for $1 million or more. Start-ups are hiring through Craigslist, and just opened lobbying firms have no trouble collaring clients. Storefronts that stood abandoned five years ago fill with pricey gourmet-food shops like Cowgirl Creamery, a cheesemonger that has opened its only store outside Northern California on F Street downtown. Its Mt. Tam cheese goes for more than $25 per pound. It’s organic.
Another Northern California import, a limousine service called Uber, launched in December after great success in San Francisco and New York City. “The growth here has been unique in our experience,” says Rachel Holt, who oversees Uber’s burgeoning D.C. operation. Uber is Web-based and cashless: customers call for limos with a smart-phone app and pay with a credit card on file. It’s also deluxe. Riders expect nothing lower on the limo food chain than a Town Car, with offerings going up to Mercedes and beyond.Way back when I worked in the cheese business, my Boston-born boss used to refer to Beantown as "a slice of the good life" but Washington and its suburbs are indeed the whole cheese wheel as far as "the good life" goes.
Other big cities, of course, have made it through the recession in one piece. But few eased through the crash as lightly as D.C., much less prospered so widely on the rebound. The local unemployment rate, at 5.5%, stands well below the national figure of 8.2%. The region’s foreclosure rates have always been significantly lower than those elsewhere, and now housing prices in D.C. and across the river in the Virginia suburbs of Arlington and Alexandria are close to their precrash peaks. The Association of Foreign Investors in Real Estate—in Washington, everyone has an association—ranks the region as one of the best investments in the world, right after London and New York City. The cost of office space in Washington rivals New York prices, averaging $50 a square foot.
How’s a country to make sense of a national capital whose day-to-day life is so much more upholstered than its own? Increasingly, it cannot. Recently Washington passed San Jose in Silicon Valley to become the richest metropolitan area in the U.S. Since the 1990s, says economist Stephen Fuller of George Mason University, the region has led the nation’s metropolitan areas in overall employment rate. The median household income in the metro area in 2010 was $84,523, according to calculations by Bloomberg News, nearly 70% over the national median household income of $50,046. Nine of the 15 richest counties in the country surround Washington, including Nos. 1, 3, 4 and 5.As we might expect, the engine that drives the District is our free-spending government and the never-ending tax collections. The size of government has grown exponentially since Bill Clinton took office in 2000, Bush 43 kicked it up another notch and Obama's cronies have become history's biggest spenders.
Yet the diversity of the Washington economy is an illusion, for each of its business sectors is to some degree a creature of the region’s single great industry—the federal government. According to a 2007 report by the Tax Foundation, for every dollar in taxes Washington sends to the federal government, it receives five in return. Fuller says that over the past 30 years, the federal government has spent $860 billion in the D.C. region, two-thirds of that since 9/11.
Why the boom? The size of the nonmilitary, nonpostal federal workforce has stayed relatively stable since the 1960s. What has changed is not the government payroll but the number of government contractors. It’s estimated that, thanks to massive outsourcing over the past 20 years by the Clinton and Bush administrations, there are two government contractors for every worker directly employed by the government. Federal contracting is the region’s great growth industry. A government contractor can even hire contractors for help in getting more government contracts. You could call those guys government-contract contractors.If there is one thing worse than large bureaucracies, it is large bureaucratic supervising teams of consultants supervising other consultants - especially those who are "wet-behind-the-ears."
Peter Corbett isn’t so sure about the wisdom of D.C.’s version of the knowledge economy. Corbett heads a social-media marketing company, with corporate clients that have famous names. Most of his work involves nonprofit foundations that have flocked to Washington to be close to the fount of grants and tax breaks. He did a single project for the federal government and then swore it off for good. He describes his first meeting at the Pentagon. “There are 12 people sitting around the table,” he says. “I didn’t know eight of them. I said, ‘Who are you?’ They say, ‘I’m with Booz Allen.’ ‘I’m with Lockheed.’ ‘I’m with CACI.’ ‘But why are you here?’ ‘We’re consultants on your project.’ I said, ‘You are?’ They were charging the government $300 an hour, and I had no idea what they were doing, and neither did they. They were just there. So I just ignored them and did my project with my own people.”
Aside from its wealth, the single defining feature of über-Washington is its youth. Most of the people who have moved to Washington since 2006 have been under 35; the region has the highest percentage of 25-to-34-year-olds in the U.S. “We’re a mecca for young people,” Fuller says. One recent arrival says word has gotten out to new graduates that Washington is where the work is. “It’s a place where a liberal-arts major can still get a job,” she says, “because you don’t need a particular skill.”But not all of Washington life is fun and games, despite the staffer's "Wheels-Up Parties" that begin every Thursday evening when their non-resident bosses return home for long weekends. With the promise of the "good life" students are accepting low and no-paying jobs in DC order to join-in on the privileges later.
Über-Washington has its own career pattern that is becoming as routinized as that of a 1950s organization man. A student graduates and goes to Washington for an internship, usually unpaid, which qualifies her for another internship, perhaps paid, until an entry-level job is offered, as it almost always will be. “Then you work for a few years,” Glickfield explains, “and then you go off and get the next degree, law or business, and then you come back for a better job.” Colleges and universities have figured this out and moved quickly to get a place on the conveyor belt. Big state schools and smaller liberal-arts colleges occupy office buildings in the city, where they run sophisticated internship programs designed to place their graduates (and soon-to-be graduates) in one of the country’s few hot job markets.
As national politics makes it impossible to expand government explicitly, these interns—often underpaid, usually overworked and frequently subsidized by their parents—have become vital to keeping government going. At the same time, they contribute to a feature of über-Washington that too often goes unremarked: the capital has one of the most lopsided distributions of wealth of any major metropolitan area in the U.S. Along with a higher per capita income than any state and one of the nation’s lowest rates of unemployment, Washington has a poverty rate of nearly 20%, above the national average of 15%; a public-school system that is often called the worst in the nation; and a crime rate that remains higher than in any other rich community. In the district, whites enjoy a per capita income nearly three times that of African Americans.But here in flyover country, the insight into Washington's culture, strangely dominated by radical environmentalism, may present our greatest threat, which means that government as we know it has to be reorganized and slimmed down - from the ground up, because fraking in the oil and gas is looked down upon by the insulated Washington folks, but it is prosperity and jobs in northwestern North Dakota and in Youngstown, Ohio.
Socially and culturally, life in über-Washington can seem as insular as its economy, and the insularity has consequences for the rest of the country. Über-Washingtonians, for instance, are intensely concerned about the environment. The local economy bristles with company names like GreenBrilliance and SkyBuilt Power. But the unreal character of that economy makes it easy for Washingtonians to overestimate the ability or the desire of their fellow Americans to live as they do. In über-Washington, the private automobile is looked on as at best a necessary nuisance and at worst a morally suspect source of sprawl and climate change. Many Washingtonians are eager to tell you they don’t own one, preferring a highly subsidized commute on the Metro system’s carpeted (if often unreliable) subway cars. Even Uber, the limo service, has been hailed on blogs as a green innovation, notwithstanding its emanations of conspicuous consumption. Bike-share racks have sprung up downtown and in the close-in suburbs to take advantage of the newly painted bike lanes that have squeezed grand thoroughfares like 14th Street down to two lanes. Local authorities have reserved hundreds of parking spaces exclusively for Zipcars, which customers rent for an hour or a day in place of buying a car of their own. The Zipcar motto: “Cars with a conscience.”If we ever needed a reason for austerity consider:
How long can such a culture of complacency last, even one as heavily subsidized by a country as rich as the U.S., in the face of awesome government debt?
The optimism of über-Washingtonians so far survives the unspoken worry about a coming age of austerity, in which government spending cuts would end the high life that Washingtonians have come to expect. They are right to be optimistic. The two most plausible deficit-reduction proposals—one by President Obama, the other by the Republican-controlled House Budget Committee—each calls for the government in 2021 to spend a trillion dollars more than it spends today.