In part three Ayn Rand reveals to us the true natures of James Taggart and Lillian Rearden, the antagonists closest to our main characters. These two characters represent the true maliciousness and evil of the spirit that Rand is condemning throughout the novel. They are unable to create their own virtue, and are wired to think that the destruction of another grants them greatness.
Lillian smirks in Dagny's face when she reveals that Rearden's destruction was her own doing. She feels a violent jealousy and disgust for those who are great, because she simply does not have the power to achieve anything. She works with the rest of Rearden's family to tear him down and make him feel shame for his actions. Unfortunately for her, Rearden has finally begun to rise above. After all, there is only so much abuse one can take before learning to push back.
James Taggart uses Cherryl as a conduit for self-reassurance. He knows she will continue to love and praise him without real cause. Through Cherryl, James can live as his virtuous sister lives, without having to actually be like her. He feels threatened when Cherryl begins to discover the truth of his identity, for he knows her realization will shatter his illusion. Like most of the bloodthirsty tycoons preaching welfare for the people, Jim has built a fortress of lies to conceal his worthlessness. Jim, Lillian, and all their companions, purposely deceive themselves into believing they stand upon a moral premise. When Cherryl cries out to him that the spirit she loved all along was that of Dagny Taggart, Jim strikes her down physically, just as he strikes down any threat to his lies.
On the night Cherryl leaves James, Lillian appears at the door. She seeks a favor from Jim in return for the countless favors she has done for him. He refuses to do so for she is no longer of any use to him. Throughout the night, Jim refers to her as "Mrs. Rearden", in a manner of hatred and disgust. When they go to Jim's bedroom, they do not do so out of desire or any form of passion for each other. They do so for the basic need of partaking in something that is clearly wrong and evil, in order to spite those that they envy. When Dagny and Hank learn to destroy the two characters who are their demons, they will finally be able to rise above abuse and let themselves walk free.
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