Quotulatiousness

October 30, 2014

QotD: Conservative versus Liberal views on jobs

Filed under: Economics, Media, Quotations, USA — Tags: , — Nicholas @ 00:01

For the conservative, people are an asset — in the coldest economic terms, a potentially productive unit of labor. For the progressive, people are a liability — a mouth to be fed, a problem in need of a solution. Understanding that difference of perspective renders understandable the sometimes wildly different views that conservatives and progressives have about things like employment policy. For the conservative, the value of a job is what the worker produces; for the progressive, the value of a job is what the worker is paid. Politicians on both sides frequently talk about jobs as though they were economic products rather than contributors to economic output, as though they were ends rather than means. The phrase “there aren’t enough jobs” is almost completely meaningless, but it is a common refrain.

Kevin D. Williamson, “Welcome to the Paradise of the Real: How to refute progressive fantasies — or, a red-pill economics”, National Review, 2014-04-24

October 15, 2014

The pay gap issue, again

Filed under: Business, Economics — Tags: , , , — Nicholas @ 09:28

There’s been a lot of moaning on about inequality recently — some are even predicting it will be the big issue in next year’s Canadian federal election — but the eye-popping figures being tossed around (CEOs being paid hundreds of times the average wage) are very much a case of statistical cherry-picking:

Before retiring to their districts for the fall, the House Democratic Caucus rallied behind the CEO/Employee Pay Fairness Act, which would prevent a public company from deducting executive compensation over $1 million unless it also gives rank-and-file employees raises that keep pace with the cost of living and labor productivity.

Meanwhile, the AFL-CIO and its aligned think tanks have made hay of the huge difference between the pay of CEOs and employees. One of the most widely cited measures of the “gap” comes from the AFL-CIO’s Executive Paywatch website.

  • The nation’s largest federation of unions laments that “corporate CEOs have been taking a greater share of the economic pie” while wages have stagnated for the rest of us.
  • As proof, it points to a 331-to-1 gap in compensation between America’s chief executives and the pay of the average worker.

That’s a sizable number. But don’t grab the pitchforks just yet, says Mark J. Perry, economic professor at the University of Michigan-Flint and resident scholar at the American Enterprise Institute, and Michael Saltsman, research director at the Employment Policies Institute.

The AFL-CIO calculated a pay gap based on a very small sample — 350 CEOs from the S&P 500. According to the Bureau of Labor Statistics, there were 248,760 chief executives in the U.S. in 2013.

  • The BLS reports that the average annual salary for these chief executives is $178,400, which we can compare to the $35,239-per-year salary the AFL-CIO uses for the average American worker.
  • That shrinks the executive pay gap from 331-to-1 down to a far less newsworthy number of roughly five-to-one.

October 14, 2014

A new view on cosplay – as a symptom of a seriously weakened economy

Filed under: Economics, Japan, Media — Tags: , , , , — Nicholas @ 15:06

A certain amount of this rings true:

Imagine you’re a college graduate stuck in a perpetually lousy economy. That’s a problem Japanese twenty-somethings have faced for more than 20 years. Two decades of stagnation after the collapse of the 1980s real-estate and stock bubbles — combined with labor laws making it tough to fire older workers — have relegated vast numbers of Japanese young adults to low-paying, temporary contract jobs. Many find themselves living with their parents well into their twenties and beyond, unmarried and childless.

Then again, they do have plenty of time to dress up like wand-wielding sailor girls and cybernetic alchemist soldiers from the colorful world of anime cartoons and manga comics. Indeed, Japan’s Lost Decades have coincided with a major spike in “people escaping to virtual worlds of games, animation, and costume play,” Masahiro Yamada, a sociology professor at Chuo University in Tokyo, recently told the Financial Times. “Here, even the young and poor can feel as though they are a hero.”

It’s hard to blame them. After all, it’s not that these young adults in Japan are resisting becoming productive members of the economy — it’s that there just aren’t enough opportunities for them. So an increasingly large number of them spend an increasingly large amount of time living in make-believe fantasy worlds, pretending they are someone else, somewhere else. This is a very bad thing for the Japanese economy.

And guess what: America has a growing number of make-believe “cosplay” heroes, too. Many of the 130,000 people who attend the San Diego Comic Con every year invest big bucks in elaborate outfits as a way of showing off their favorite Japanese characters, as well as those from American superhero movies, comics, and “genre” televisions shows such as Game of Thrones. And this trend is growing — the crowd at Comic Con was one-third this size in 2000. In 2013, the SyFy channel even created a reality show about the trend, Heroes of Cosplay.

H/T to Ghost of a Flea for the link.

October 8, 2014

Megan McArdle – It’s time for that talk

Filed under: Business, Economics — Tags: , — Nicholas @ 10:50

I don’t know how I missed this when it was published last week…

All right, boys and girls, it’s time to have some real talk about efficiency wages.

I know, you’re older now. You’re starting to notice things that you never noticed before. Like the differences between Costco and Wal-Mart, differences that suddenly seem so … intriguing. Exciting. You suddenly want to explore those feelings, maybe post a few GIFs to Facebook. You hear other kids talking, and suddenly you wonder about this whole new world of labor relations that you never even knew existed.

I want you to know that what you’re feeling is completely normal. Efficiency wages — that’s the scientific term, and we’re going to use scientific terms, not that dirty talk about scabs and exploiters that you hear in the locker room — are very exciting. It’s only natural that you want to explore. Now, stop tittering. I said “explore,” not “exploit.”

But you need to explore safely. You can’t just plunge straight into advocating a $15-an-hour minimum wage; you need to know all the facts so you can make sound, educated decisions about your labor-policy activism. So let’s talk about efficiency wages and how they work.

When an employer loves his workers … OK, never mind. Straight to the real talk.

As they used to say, “read the whole thing“.

September 20, 2014

QotD: Work

Filed under: Humour, Quotations — Tags: , — Nicholas @ 00:01

It always does seem to me that I am doing more work than I should do. It is not that I object to the work, mind you; I like work: it fascinates me. I can sit and look at it for hours. I love to keep it by me: the idea of getting rid of it nearly breaks my heart.

You cannot give me too much work; to accumulate work has almost become a passion with me: my study is so full of it now, that there is hardly an inch of room for any more. I shall have to throw out a wing soon.

And I am careful of my work, too. Why, some of the work that I have by me now has been in my possession for years and years, and there isn’t a finger-mark on it. I take a great pride in my work; I take it down now and then and dust it. No man keeps his work in a better state of preservation than I do.

But, though I crave for work, I still like to be fair. I do not ask for more than my proper share.

Jerome K. Jerome, Three Men in a Boat (to say nothing of the dog), 1889.

September 17, 2014

Creating jobs, good. Creating subsidized jobs, not so good.

Filed under: Economics, Government — Tags: , , , , — Nicholas @ 09:33

Gregg Easterbrook on the difference between ordinary jobs and government subsidized job creation:

Elon Musk Recharges His Bank Account: Tesla’s agreement with Nevada to build a battery factory is expected to create about 6,000 jobs in exchange for $1.25 billion in tax favors. That’s about $208,000 per job. More jobs are always good. But typical Nevada residents with a median household income of $54,000 per year will be taxed to create very expensive jobs for others. Volkswagen is expanding its manufacturing in Tennessee, which is good. But the state has agreed to about $300 million in subsidies for the expansion, which will create about 2,000 jobs — that’s $150,000 per new job, much of the money coming from Tennessee residents who can only dream of autoworkers’ wages. The median household income in Tennessee is $44,140, about a third of the tax subsidies per new Volkswagen job. The Tesla handout was approved by the Democratic state legislature of Nevada; Tennessee’s Republican-controlled state government approved the Volkswagen corporate welfare deal.

At least it’s a bargain compared to federally subsidized solar jobs. A Nevada solar project — state that is home to Senate Majority Leader Harry Reid, President Barack Obama’s closest ally on Capitol Hill — cost $10.8 million in subsidies per job created. Local public interest groups noticed the extreme subsidy while the national media did not.

This cheeky website monitors giveaways state by state.

September 16, 2014

QotD: The real value of work

Filed under: Health, Quotations — Tags: , , — Nicholas @ 00:01

People without meaningful work and copious free time don’t write symphonies or create great works of art. They don’t live a life of the mind. They drink too much, or get in fights, or watch a lot of internet porn, or commit crimes. They don’t contribute to the economy or culture, as a rule. They just…exist. And it goes on like that, sometimes for generations.

Labor is the fate of all humankind. Always has been. We work to live. Work gives shape and meaning to our lives. It’s not just the income we derive from it; it’s the knowledge that we are able to function as adults in the wider world, and provide for ourselves and our families. It’s feeling the satisfaction of having contributed something to the maintenance of civilization, even if it means we haul trash away or keep the grass mowed. It’s all honorable work, necessary work, and not something to be ashamed of.

It’s not an outrage, it’s just the way things are. To try and embitter people about that, to make them feel that the natural order of things is unfair, is just to do an enormous amount of harm to the very people you’re claiming to want to help.

Monty, “We’re now living in a post-labor Utopia. Have you heard about this?”, Ace of Spades HQ, 2014-02-06

August 18, 2014

Worstall confirms that “the UK would lose 3 million jobs in the year it left the European Union”

Filed under: Britain, Business, Economics, Europe — Tags: , , — Nicholas @ 09:15

There you go … proof positive that the UK cannot possibly, under any circumstances, leave the European Union. Except for the fact that the UK would lose 3 million jobs in the year even if it stayed with the EU, because that’s how many jobs it normally loses in a year:

UK Would Not Lose 3 Million Jobs If It Left The European Union

Well, of course, the UK would lose 3 million jobs in the year it left the European Union because the UK loses 3 million jobs each and every year. Roughly 10% of all jobs are destroyed in a year and the economy, generally, tends to create 3 million jobs a year as well. But that’s not the point at contention here which is the oft repeated claim that because we left the EU then therefore the UK economy would suddenly be bereft of 3 million jobs, that 10% of the workforce. And sadly this claim is a common one and it just goes to show that there’s lies, damned lies and then there’s politics.

The way we’re supposed to understand the contention is that there’s three million who make their living making things that are then exported to our partners in the European Union. And we’re then to make the leap to the idea that if we did leave the EU then absolutely none of those jobs would exist: leaving the EU would be the same as never exporting another thing to the EU. This is of course entirely nonsense as any even random reading of our mutual histories would indicate: what became the UK has been exporting to the Continent ever since there’s actually been the technology to facilitate trade. Further too: there have been finds in shipwrecks in the Eastern Mediterranean of Cornish tin dating from 1,000 BC, so it’s not just bloodthirsty and drunken louts that we’ve been exporting all these years.

August 17, 2014

QotD: Retirement age

Filed under: Humour, Quotations — Tags: , , , — Nicholas @ 00:01

Of the many problems discussed and solved in this work, it is proper that the question of retirement should be left to the last. It has been the subject of many commissions of inquiry but the evidence heard has always been hopelessly conflicting and the final recommendations muddled, inconclusive, and vague. Ages of compulsory retirement are fixed at points varying from 55 to 75, all being equally arbitrary and unscientific. Whatever age has been decreed by accident and custom can be defended by the same argument. Where the retirement age is fixed at 65 the defenders of this system will always have found, by experience, that the mental powers and energy show signs of flagging at the age of 62. This would be a most useful conclusion to have reached had not a different phenomenon been observed in organizations where the age of retirement has been fixed at 60. There, we are told, people are found to lose their grip, in some degree, at the age of 57. As against that, men whose retiring age is 55 are known to be past their best at 52. It would seem, in short, that efficiency declines at the age of R minus 3, irrespective of the age at which R has been fixed. This is an interesting fact in itself but not directly helpful when it comes to deciding what the R age is to be.

C. Northcote Parkinson, “Pension Point, Or The Age Of Retirement”, Parkinson’s Law (and other studies in administration), 1957.

August 7, 2014

Alison Redford’s political exit

Filed under: Cancon, Politics — Tags: , , , , — Nicholas @ 10:13

Colby Cosh bids adieu to the former Progressive Conservative premier of Alberta:

What will Alison Redford’s premiership be remembered for? She summarized her own legacy in the statement she released when resigning from the Alberta Legislative Assembly Wednesday. And it is a little sad.

[...]

Can the Alberta PC dynasty survive calling the cops on one of its own leaders? Most Alberta voters, I suspect, will go over the events and revelations of the last year and think: “Are we turning into British Columbia or what?” Redford fell from power because she appeared to be foul-tempered and paranoid as well as ethically dubious, but if we are being honest, her scandals are at least as much a matter of evolving standards as they are worsening behaviour.

Under Redford, the Progressive Conservatives have gotten caught taking dozens of donations for the party war chest from municipalities, counties, learning institutions, government agencies and contractors, and the Treasury Branches. Some of this happened before Redford became Premier, which is worth remembering as the party tries to pin everything on the discarded bad apple. None of the people who engineered those kickbacks showed any awareness that they were obviously wrong or even unlawful, which tells us just how long the PCs have been doing that sort of thing. Because disclosure laws have evolved, and Google exists, we find out about it now. (Not all of Redford’s problems over expenses were ferreted out by reporters following up tips with FOI filings: some came up simply because Alberta government expense disclosure is now public, online, and frequent.)

There is a strong case that the PCs need some time on the sideline as a matter of hygiene — that, irrespective of ideology, 43 consecutive years of majority government is as unhealthy as 43 consecutive days wearing the same underwear. But it is easy to forget that Albertans have good reasons for their apparently congenital reluctance to change. The province’s resource economy has been managed, to a degree few others can boast, for the benefit of what used to be called “the working class”. The market power of skilled and unskilled industrial labour is probably as enormous, here and now, as it has been anywhere in history.

Ontarians in particular may want to put down any fragile objects and get the kids out of the room before reading the next two paragraphs…

And political power follows, if only because the trades are so large as a proportion of the populace in Alberta. If you need proof, just look at the virtually unified clamour against the federal government’s neutering of the Temporary Foreign Worker program. In Alberta, TFW is popular because it functions as a guarantee that oilpatch and construction workers will continue to enjoy cheap food, hospitality, daycare, and entertainment while their own wages skyrocket.

There is a little-noticed irony in the Canadian left’s contempt for Alberta: to a truly awesome degree, Alberta has, through managed capitalism, fulfilled the wildest dreams for industrial workers ever dreamed up by Marx and Lenin. This self-evidently has not much to do with labour unions. (What labour unions?) When Albertans talk about TFW, it is often observed that young people exiting high school here are not obligated to fill brainless service jobs, because it is so easy for them to go buy a pair of steel-toes and land a fairly enormous salary in a matter of hours. It is important that people outside Alberta understand: this is a complaint! It’s a common one!

August 2, 2014

“So that’s what the economists at Treasury mean by ‘priming the pump'”

Filed under: Bureaucracy, Government, Humour, USA — Tags: , , — Nicholas @ 11:28

Kevin Williamson explains that the government is staffed by deviants under-employed workers who have to find ways to spend their time in the office creatively:

Behind closed doors, in private offices off Washington’s corridors of power, there are a lot of mouses getting double-clicked, if you know what I mean. At the Environmental Protection Agency, a senior official spent so much time watching pornography while on the federal clock that the Office of the Inspector General dispatched a special agent to look into it — and the official continued watching porn while the OIG agent was in his office. At the Federal Communications Commission — which, among other things, polices pornography — employees routinely spend the equivalent of a full workday each week watching porn. At the General Services Administration — which, like the FCC, has a lot of fingers in a lot of pies, being charged with minimizing federal operating costs — employees spend up to six hours a day watching porn on the taxpayers’ dime. At Commerce, paralegals were paid upward of $4 million to do no work — any guesses how they filled their days?

It’s a lucky thing that federal employees have such good insurance plans when it comes to workplace-related troubles such as repetitive-stress injuries: One especially heroic employee at Treasury viewed more than 13,000 pieces of pornography in the space of a few weeks, surely setting some kind of gherkin-goosing record in the process. I assume he told his superiors he was busy debugging his hard drive.

If war is politics by other means, as Clausewitz insisted, then administration is a tug of war.

A very lonely tug of war.

It is not just pornography. Federal employees fill their days with online shopping, watching television, trolling dating sites in the hopes of having a relationship with someone other than themselves and the nice webcam ladies at Smut.com

But look on the bright side:

The fact that our bureaucrats spend their days working as amateur snake charmers is, counterintuitive though it may sound, the good news. Rather than fire these tireless onanists, the federal government should upgrade their broadband and invest in … whatever matériel these ladies and gentlemen need to keep up their fearless campaign of hand-to-gland combat. If their brains ever get full use of the blood supply while they’re in the office, mischief surely will ensue.

Better their hands are in their pants than on the levers of power.

July 14, 2014

When unions took over the public sector

Filed under: Bureaucracy, Business, Economics, Government, USA — Tags: , , , , — Nicholas @ 09:09

Dmitri Melhorn says the union movement is missing an opportunity to be more relevant in the private sector, because public sector unions don’t help poorer workers (because public sector union members are middle class professionals, not working class):

Progressive hostility to [Harris v. Quinn], however, is shortsighted. Harris and decisions like it have the potential to revitalize progressive politics by restoring the relevance and political potency that labor held in the early-to-mid-20th century. The great labor leaders of that era — AFL-CIO President George Meany, President Franklin D. Roosevelt, and the like — agreed with the majority in Harris: it was both impractical and inadvisable to afford public employees compulsory collective bargaining rights.

Roosevelt said that collective bargaining and public workers’ right to strike would be “unthinkable and intolerable.” Meany said it would be “impossible.” In the view of these leaders, civil service laws from the Progressive Era of the 1890s to 1920s had made government jobs good and safe. Labor and progressives, therefore, needed to focus on blue-collar workers’ need to fight collectively for basic safety, dignity and living wages. Through this focus, the United States saw historic gains in the well-being of workers and the country’s middle class.

That labor heyday lasted through the 1950s, but starting in the late 1960s labor lost ground. Public-sector unions grew rapidly, but private-sector unions shrank. By 2012, public-sector workers had union membership rates more than five times higher than rates among private-sector workers.

Essentially, the public-sector unions sucked up all the oxygen. Talented labor organizers opted to work with government workers: their members were relatively prosperous and well connected, so they were easy and lucrative to organize. As explained in Jake Rosenfeld’s book What Unions No Longer Do from earlier this year, this shift to public-sector unions meant that unions no longer fought primarily for the working poor. Instead, much of their muscle was devoted to improving the status of middle-class professionals.

July 12, 2014

QotD: Work

Filed under: Humour, Quotations — Tags: , , — Nicholas @ 00:02

I rather pride myself on my packing. Packing is one of those many things that I feel I know more about than any other person living. (It surprises me myself, sometimes, how many of these subjects there are.) I impressed the fact upon George and Harris, and told them that they had better leave the whole matter entirely to me. They fell into the suggestion with a readiness that had something uncanny about it. George put on a pipe and spread himself over the easy-chair, and Harris cocked his legs on the table and lit a cigar.

This was hardly what I intended. What I had meant, of course, was, that I should boss the job, and that Harris and George should potter about under my directions, I pushing them aside every now and then with, “Oh, you—!” “Here, let me do it.” “There you are, simple enough!” — really teaching them, as you might say. Their taking it in the way they did irritated me. There is nothing does irritate me more than seeing other people sitting about doing nothing when I’m working.

I lived with a man once who used to make me mad that way. He would loll on the sofa and watch me doing things by the hour together, following me round the room with his eyes, wherever I went. He said it did him real good to look on at me, messing about. He said it made him feel that life was not an idle dream to be gaped and yawned through, but a noble task, full of duty and stern work. He said he often wondered now how he could have gone on before he met me, never having anybody to look at while they worked.

Now, I’m not like that. I can’t sit still and see another man slaving and working. I want to get up and superintend, and walk round with my hands in my pockets, and tell him what to do. It is my energetic nature. I can’t help it.

Jerome K. Jerome, Three Men in a Boat (to say nothing of the dog), 1889.

July 9, 2014

QotD: British nepotism, old style

Filed under: Britain, History, Humour, Quotations — Tags: , , — Nicholas @ 00:01

A problem constantly before the modern administration, whether in government or business, is that of personnel selection. The inexorable working of Parkinson’s Law ensures that appointments have constantly to be made and the question is always how to choose the right candidate from all who present themselves. In ascertaining the principles upon which the choice should be made, we may properly consider, under separate heads, the methods used in the past and the methods used at the present day.

Past methods, not entirely disused, fall into two main categories, the British and the Chinese. Both deserve careful consideration, if only for the reason that they were obviously more successful than any method now considered fashionable. The British method (old pattern) depended upon an interview in which the candidate had to establish his identity. He would be confronted by elderly gentlemen seated round a mahogany table who would presently ask him his name. Let us suppose that the candidate replied, “John Seymour.” One of the gentlemen would then say, “Any relation of the Duke of Somerset?” To this the candidate would say, quite possibly, “No, sir.” Then another gentleman would say, “Perhaps you are related, in that case, to the Bishop of Watminster?” If he said “No, sir” again, a third would ask in despair, “To whom then are you related?” In the event of the candidate’s saying, “Well, my father is a fishmonger in Cheapside,” the interview was virtually over. The members of the Board would exchange significant glances, one would press a bell and another tell the footman, “Throw this person out.” One name could be crossed off the list without further discussion. Supposing the next candidate was Henry Molyneux and a nephew of the Earl of Sefton, his chances remained fair up to the moment when George Howard arrived and proved to be a grandson of the Duke of Norfolk. The Board encountered no serious difficulty until they had to compare the claims of the third son of a baronet with the second but illegitimate son of a viscount. Even then they could refer to a Book of Precedence. So their choice was made and often with the best results.

The Admiralty version of this British method (old pattern) was different only in its more restricted scope. The Board of Admirals were unimpressed by titled relatives as such. What they sought to establish was a service connection. The ideal candidate would reply to the second question, “Yes, Admiral Parker is my uncle. My father is Captain Foley, my grandfather Commodore Foley. My mother’s father was Admiral Hardy. Commander Hardy is my uncle. My eldest brother is a Lieutenant in the Royal Marines, my next brother is a cadet at Dartmouth and my younger brother wears a sailor suit.” “Ah!” the senior Admiral would say. “And what made you think of joining the Navy?” The answer to this question, however, would scarcely matter, the clerk present having already noted the candidate as acceptable. Given a choice between two candidates, both equally acceptable by birth, a member of the Board would ask suddenly, “What was the number of the taxi you came in?” The candidate who said “I came by bus” was then thrown out. The candidate who said, truthfully, “I don’t know,” was rejected, and the candidate who said “Number 2351″ (lying) was promptly admitted to the service as a boy with initiative. This method often produced excellent results.

C. Northcote Parkinson, “The Short List, Or Principles Of Selection”, Parkinson’s Law (and other studies in administration), 1957.

June 14, 2014

QotD: The sins of the modern university system

Filed under: Bureaucracy, Quotations, USA — Tags: , , — Nicholas @ 09:22

Few if any other professions — not law, medicine, finance, engineering, etc. — offer guaranteed lifetime employment after a six-year apprenticeship. Tenure was predicated on a simple premise: The protection of faculty free speech and instruction was worth the possible downside of complacency and an absence of serious ongoing faculty audit. Whatever may once have been the case, in our time tenure does not ensure free expression, but instead a banal orthodoxy, in which 90 percent of the faculty in the humanities share the same progressive outlook. Tenure also created a caste system far more rigid than anything found in private enterprise, while a huge permanent faculty class ensured inflexibility in scheduling and budgeting. The associate or full professor enjoyed a lifelong right of selection of his classes without too much worry over whether they were either needed or taught well. Worse, the nontenured faculty member, in the fashion of the Middle Ages, was admitted to the guild only if his tenured peers believed that he was agreeable in politics and attitude. He was usually judged by teaching and publication criteria that did not necessarily apply to his board of overseers, many of whom had achieved tenure 20 years earlier under entirely different criteria.

[...]

The abuse of lecturers, part-timers, and graduate students is institutionalized. In a word, the university is the most exploitative institution operating at present in the United States, protected by the notion that it is progressive and that its protocols cannot possibly be understood by the ordinary public. Temporary and adjunct faculty members often have degrees as good as those of their tenured betters. Often their teaching records and publications are comparable, if not superior. They may teach the same classes as permanent faculty do, and yet often receive about half the compensation. Were Wal-Mart or a coal mine to operate under such protocols, it would earn Labor Department sanctions. At some public universities, nearly half of the curriculum is taught by part-time faculty — in effect a subsidy that allows the tenured caste to teach smaller and less-in-demand classes, where less time is needed for preparation and grading. Worse still, universities knowingly turn out too many PhDs in the humanities, which ensures a glut of job applicants, which, again, ensures a continued supply of cheap temps to sustain tenured privilege.

Victor Davis Hanson, “The Outlaw Campus”, VDH’s Private Papers, 2014-01-07

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