Dana Blankenhorn

The Big Secret of 2020

The stock market is not the economy.

The fall of Trump is secure because of that.

Trump has long confused the health of the stock market with the economy. But 84% of stock is held by people in the top 10% of income. The bottom 80% own just 6.7% of shares. 

Whether it’s true or not that most Americans own some stock, as the nit-pickers at Politifact want you to believe, the fact is that prosperity is going to fewer-and-fewer people. (Thanks to two careers in tech, some of it is flowing to me.)

This trend has accelerated during the Trump time. Among the hottest stocks today are companies that cater to the needs of poor people. Dollar General is up from $60 to $160 since Trump’s election. A former Dollar General CEO, David Perdue, is a Senator from Georgia as a result. The other Georgia seat is held by Kerry Loeffler, whose husband runs Intercontinental Exchange, Atlanta-based owners of the New York Stock Exchange.

You may think Trump’s base consists of racists and mullahs, but it’s really moolah. A Goldman Sachs client survey shows 87% expect Trump to be re-elected. Hedge fund billionaires love this market, and they love Trump, even though they know his pumping of stock prices must end. 

I’m one of very few reporters working today who was doing this job in 1980. I’m on the same business beat I was on then. I was also politically active in 1980.

The Changing Face of Retail

If all you know of me is this weekly blog, you may not know I’ve made my living for over 40 years as a business reporter.

Even when technology was my focus, from 1983 until 2009, it was always from the point of view of business. My most profitable periods were from 1997-2000, when I covered Internet commerce, and from 2005-2009, when I covered open source and health IT.

These days I make my money from InvestorPlace. It’s a great gig, if a little straitjacketed. They want single-company stories, and they want me to say whether you should buy or sell. I’ve seemed to be a genius, because the market has been rising these last few years. I assure you I’m not.

With all that as background, let me talk about the biggest transformation I’ve seen in my career, which has occurred in retailing.

In my youth retailing was simple. Retailers would buy branded merchandise in bulk, break bulk in their stores, then offer it all up for sale at a mark-up of nearly 100%. My first credit card came from Sears.

Early in my career this shifted with Walmart and “category killers” like Staples, Petco and Sports Authority. But it was still the same game. Companies would buy huge lots of merchandise, break bulk in bigger stores and take smaller markups. Even Costco is like this. The only difference is that they define bulk differently.

What Follows Evil Done in Our Name

What makes America exceptional isn’t that we don’t do evil.

Anyone who has gone through more than high school history knows that the United States is, at its heart, a European empire given a veneer of idealism we have yet to live up to.

America’s governments have endorsed slavery, committed genocide, taken power by force (starting in Hawaii), and overthrown any government of color we didn’t like. You may tell your kids whatever lies you like. Kids elsewhere aren’t fooled.  If anything, the evil done in our name has only gotten worse in my lifetime. Vietnam, Nicaragua, and Iraq are just the highlights.

What’s most interesting is that other societies can call this history what it is, history. When Trump threatened to destroy 52 Iranian cultural monuments, “one for every hostage,” he was talking about something that happened 40 years ago. The median age in Iran is 31. I talked with a Vietnamese math genius last year, age 28, and asked him about The War. His parents had no memory of it. It was from his grandfather’s time.

We’re stuck in a memory hole. The developing world is not.

The year 2020 is a turning point because the gating factor to growth today is human capital. Trained, agile, active, ambitious minds are where the money is at today, not oil.

America has dominated the economy of this century, so far, because we imported such minds. We also offered the greatest support to them, in terms of education, capital, and market opportunity. Trump has tossed things into the fire with everything else. An economic and demographic cliff yawn before us and his supporters don’t even see it.

Netiquette: The Issue for 2020

I covered the biggest issue of 2020 back in 1988.

I covered it in two ways.

On the one hand I covered the Electronic Networking Association for Newsbytes.

The ENA featured such cutting-edge minds as Mike Godwin and Joichi Ito. They met online, using software called PARTIcipate. They were communicating across nations and time zones. It was exciting.

They didn’t want to spoil it. They developed rules known as Netiquette to define proper behavior.

Netiquette can be summarized thusly: be nice. Assume goodwill. Be polite. Accept disagreement as legitimate. Don’t lie to make a point. Remain inquisitive and friendly. Understand that the person reading what you “say” can’t read your body language. Account for that.

My Congressman Has Cancer

John Lewis was diagnosed with stage four pancreatic cancer a few days before 2019 ended.

A decade ago, that would have been a death sentence. Steve Jobs died of pancreatic cancer in 2011, after a controversial liver transplant in 2009.

But there’s a new way of attacking it, immunotherapy. James Allison and Tasuku Honjo shared the 2018 Nobel Prize in Medicine  for their discovery of immunotherapy, turning the body’s own immune system against cancer. Four years after their discovery Jimmy Carter saw his own cancer go into complete remission, thanks to immunotherapy. An old friend, David Coursey, recently reported his own pancreatic cancer is in remission, a year after diagnosis. He looks good, strong, and has all his hair.

In short, there’s hope. But there’s also the reality. John Lewis will die. Just as you will die, and I will die.

Whenever that happens for John Lewis, he will go in peace because he’s a practicing Christian. His life has been a testimony to Christ’s work among us. He has kept going forward, 50 years past Dr. King’s assassination, because of faith that will make his final moments on Earth a celebration, a going home.