Dana Blankenhorn

Elizabeth Warren on Tech Street

Ronald Reagan was not oil’s first choice in 1980.

John Connally was first. George H.W. Bush was second. Oil accepted Reagan and, through Bush, won political power for a generation, power it still has in the face of tech’s need for human capital.

So it is that we come to the 2020 game. Tech has been in the economic driver’s seat for 12 years, but in the political back seat for three. Tech has suffered for this. Its priorities have been ignored. It has been scapegoated by an Administration working in the interests of oil.

Technology is Democratic. It’s not a question of who tech prefers. Tech needs a seat at the political table, it will have a seat at the table, and that table will be Democratic. Assuming, of course, that democracy survives.

The 2020s: A Future in Three Parts

Moore’s Law accelerates change. Aging accelerates time.

Hard as it may be for me to believe, the 2010s will be over in less than 5 months.

In technology the last decade has been a Golden Age for clouds and devices. So, too, in business and in politics. The refusal of cloud companies to lock-down their technology elected Donald Trump. The result has been a march toward civil war, global war, trade war, the biggest crisis since the late 1960s.

But you ain’t seen nothing yet.

Moore’s Law of Health means I may live much longer than my parents did, long after history should have rolled over me. At least that’s true in those places where people can afford medical care. The likeliest replacements for Donald Trump are both older than he is. Al Gore is younger than either Joe Biden or Bernie Sanders. We’re still debating Woodstock, 50 years on.

We’re going to start turning the page on the current era in 2020. The hold of the autocrats is weakening. It’s weakening in Russia. It’s weakening in China. It’s weakening in Texas.

Moore’s Law continues marching onward, better and better, faster and faster, reaching further and further afield.

In this decade it has made Africa accessible to global markets, made India as well as China an economic power. Over 1 billion people have entered the middle class this century – they have homes, some material comforts, and they have hope.

What might the next decade bring? If I make it to the end of this decade, I’ll be 75, so this may be my last shot at predicting the future.

But here goes.

The 1979 Game

An industry’s takeover of politics tends to be defensive.

It happens when that industry seems to be riding high. It acts against leaders whom neutral observers may credit with that rise.

I covered this story 40 years ago. In Houston.

The oil industry did great in 1979, despite Jimmy Carter’s cardigan sweater. Saudi Arabia, more Texas’ ally than America’s, had proven the economic power of resources with its 1973 embargo. Iranian mullahs believed they could use the same economic force against America. Oil understood this as a threat to its interests. Carter saw oil’s profits as leverage he could use against the Iranians.

Fall of the House of Oil

There is no energy shortage. The sun shines. The wind blows. The tides roll. We live on a molten rock.

At the start of this decade, when I first began covering the War Against Oil, and changed the sub-head of this blog to reflect that, I believed the key to victory was bringing enough investment to the space, public and private, so that the cost of renewable energy would fall below that of fossil fuels.

It’s happened.

Crossover happened just as I expected, in 2016. The cost of energy from solar panels is now lower than that from burning coal. The cost of energy from windmills is now falling below that of burning natural gas.

The only thing keeping fossil fuels alive in the big utility model is the sunk cost of infrastructure. When that proves unreliable, as it did in Puerto Rico a few years ago, it’s replaced by solar power, batteries, and micro-grid technology, just as Al Gore predicted two decades ago. 

This Medium Cries Freedom

Throughout the decade now ending there has been a steadily growing drumbeat of elite opinion to the effect that this medium enables tyranny.

I blame Trump. The Russian manipulation of Facebook made Trump possible. Now tech must live down that legacy.

It means every collection of private data, whether by corporations, government or hackers, whatever the motive, is seen as evidence we need to throw our computers out the window. Every new technology meant to thwart abuse, meanwhile, is seen as a threat to human liberty.

Tech can’t win.

Technology can, in the hands of a ruthless dictator, enable terrible abuses. But there’s a limit.

Getting Around

I have had the same bicycle for almost 40 years.

It’s a road bike with a Romic frame, hand-made by a Hungarian refugee. The derailleurs are by Campagnolo, the gearing Shimano.

It’s very nice. It cost me three teeth. A car ran into me, crushing my old bike, in early 1981, and this was offered by my mechanic as the replacement.

I mention this only to show I have experience in getting around an urban place without gasoline.

My strangest finding over that time is that Houston is a better city for bicycling than Atlanta, if you’re trying to go someplace. That’s because Houston is flat. Hills cost energy and limit the distance you can travel comfortably.

The Crash of 2019

Right now, in early April of 2019, the U.S. economy seems to be in great shape.

Inflation is minimal. Money is cheap. Unemployment is down. Wages are rising.

Here is why I think this is all going to collapse, and that right soon.

Deflation.

As I have said here many times, technology creates deflation. Deflation is the primary subject of my Moore’s Law book, which I’m getting ready to rewrite for 2020.

To understand deflation in action, look in your hand.

The Coffee Man, A Short Story

Note: This story emerged from a small brainstorm. We know that climate change is driven by over-use of fossil fuels but what if, instead of an invention that burns coal or oil, someone had invented a machine that just sucked energy out of the air?

With just a tweet of encouragement from a well-known alternate history writer, I set to work

____________

The old man put on his “Juan Valdez” hat, a term his young employees did not understand, and walked slowly into the greenhouse, a sling across his left shoulder, the basket against his right hip.

The delicious fruit, with its precious stones, awaited him. His hands shook in anticipation.

Carefully, he pulled down a branch and picked only the ripest, reddest cherries, placing them one-by-one in the basket. It took him nearly an hour to fill the basket, not due to his age but to his care, for he avoided all the green, unripe fruit that had long been pulled routinely by those desperate for what lay within.

By the time his young workers arrived for work, chattering in a half-dozen languages, the old man was sitting at their shared lunch table, picking fruits from his basket like an aged chimpanzee, stripping off the thin fruit layer with his teeth and gums, then carefully placing each seed beside him in a dish. Satiated, he hefted the remaining fruit in its basket and placed it in the hopper of a processor.

The fruit had an intense, citrusy taste and a grape-like texture. He rubbed his hands together after emptying the basket, then smelled them with pleasure. The fruit not only tasted great, and energized him, but left a waxy residue which made his hands look younger. The fruit would be separated from the stones, dried into a pulp, and become a second harvest for the greenhouse.

His workers would go through the greenhouse today harvesting from several trees, separating the red fruits from the green, and processing them all so that, when the seeds were dried green, then roasted, they could be crushed to create what was now the most expensive beverage in all the world.

Coffee! Glorious coffee!

What Comes Next

After the market falls, when everyone is in despair, is when I get the most excited about the future.

That’s because recessions aren’t so much an ending as a beginning.

A recession means the old games no longer work. The oldest business processes disappear entirely. WE have seen this during every recession of my working lifetime.

Small towns fell under the onslaught of Walmart in the 1980s. Big boxes replaced department stores in the 1990s. In the 2000s, whole layers of middle management disappeared. In this decade, gatekeepers like insurance agents have gotten the boot.

The 1979 Game

When you win the popular vote by 9.5% but still lose ground, as Democrats did November 6, your problems are systemic.

The result underlies tech’s obligation to come out of its shell and fight for the political system that birthed it.

Tech moguls have done some things. Jeff Bezos bought The Washington Post, Marc Benioff bought Time Magazine, Laurene Powell Jobs bought The Atlantic. The key to gaining more power will be in creating journalism business models beholden to tech interests.

Tech must do to Bizarro Carter what oil did to Jimmy Carter, and for the same reason -- to protect its self-interest.