Robert Reich interview: Supercapitalism, the recession, unions, and the worldwide food shortage

Posted Apr 16th 2008 5:21PM by Andrew Horowitz
Filed under: Archer-Daniels-Midland (ADM), Chipotle Mexican Grill'A' (CMG), Commodities, Oil, Agriculture, Potash Corp. of Saskatchewan (POT)

Recently, I had the opportunity to speak with Robert Reich about some of the problems facing our economy and humanity. Those are two very big topics that could easily fill days of talk-time and we managed to scratch through it in 20 minutes or so.

Professor Reich is a wise gent who brings us closer to understanding what is needed in an ailing economy that has seen its share of economic disasters. What is needed is a good old belt tightening, it seems, and significant change in the mindset of Americans. It seems that since China and India are consuming everything in sight, it is up to us to make sue that there is going to be enough food and drink for our future generations.

We went on to discuss how the Oil Sector and Agriculture with stocks such as Potash Corp./Saskatchewan (USA) (NYSE: POT), The Mosaic Company (NYSE: MOS) and Archer Daniels Midland Company (NYSE: ADM) are the natural leaders as they will need to bring much more product to a hungry world.

In light of the American Axle & Manufact. Holdings, Inc. (NYSE: AXL) strike, I asked him about his thoughts on unions. I was amazed to find that unions only account for 8% of the workforce down from their high of 35% a few decades earlier.

I even asked if he thought a change from current Fed Chairman Bernanke would occur if Obama gets into the Oval Office.

Here is an overview of the interview.

Supercapitalism - The Transformation of Business, Democracy and Everyday Life.
People are taught all along that "the big guys" bend the rules to get wealthy... Why not them?
Harry Dent theory 2009 - What is the chance that we are entering a long term recession? Depression?
WHERE IS THE NEXT PROBLEM?
Via Barry Ritholtz: "Who should Obama replace Bernanke with?"
The worldwide food shortage, how can we protect ourselves (fill them bunkers!)
Seems to be a transparency problem today... people scratching their heads about what is going on.
Unions? Any good any more? Do they serve any purpose?

The episode concludes with The ZachZone discussing: Chipotle Mexican Grill Inc. (NYSE: CMG), Digital Domain (NASDAQ: DTWO), American Water Works Co. (NYSE: AWK), and Intrepid Potash, Inc. (NYSE: IPI).

Listen to the podcast: TDI EPISODE 52 or Listen/Subscribe in iTunes.

Tags: american water works, AmericanWaterWorks, ben bernanke, BenBernanke, digital domain, DigitalDomain, intrepid potash, IntrepidPotash, supercapitalism

Print this

Reader Comments (Page 1 of 1)

4-16-2008 @ 7:23PM

william lindblad said...

Boy, this one is a mouthful of subject matter and I did not even do the podcast. But let me try some guesses.
Super capitalism? I have no idea but I am sure it would be fine with Smith and Gresham. Capitalism itself is economic theory that continues to evolve. I see laissez faire pop up now and than but it is something that we cannot go back to anymore than monopoly. It is a system that requires some kind of oversight or it will destroy itself. Greed is one of it's tenants and we only have to look at market bubbles and housing to retain this belief.
Capitalism is already a way of life of every citizen in the U.S. so, perhaps some new twists, but new, I doubt.
As to the big guys vs small guys - they both do it, that's how the small guys get to be big guys.
I never heard of Harry Dent so I looked him up for a scan. Seems this fellow has a birthday list? Well, the DaVinci code made money!! It's also pure crap. I have one too. Mine says that the economy is going to crash between now and 2010. I am only using a history book and the economy has taken a big hit every 35-40 years - since 1740. Different reasons, but the bottom line was the same. This is like clockwork also, but is it real??
What's next - we have until 2010 to find out, that is, if the housing, fuel and general price pressures get there first. Maybe a natural event? Volcanic action has been heavy for the last 8 years and the tectonic plates have been busy making tidal waves and quakes. Any of this can make a big mess.
Food shortage? In the world it already exists in many places. Higher prices are also sure to cause social unrest. In the U.S., not for another 10-20 as that is about the extent of water left in the North West aquifer. A major drought would expedite. In any case, higher food prices are ahead, no matter what oil does.
Transparancy? We sure could use it in the banking business.
Obama? first let him get elected - November is a long way off.
Unions - have been on the downhill slide for years, but they have a function and they may be ready for a comeback.

4-16-2008 @ 9:19PM

Andrew Horowitz said...

Does that all mean you enjoyed?

:-)

A

4-17-2008 @ 2:04AM

Rusty said...

I live in Australia and produce beef. We receive absolutely zilch in the way of financial or any other sort of support - except for a small rebate for travelling 60 kms a day to put our kids on the school bus. Anyway I heard this social commentator on the radio yesterday telling us that Australian farmers have to become more efficient and produce more food at a lower cost to feed the masses! Ha - my brother-in-law owns an orchard and left the fruit on 1000 nectarine trees because it would cost him more to pick it than leave it there. And I don't grow grain crops anymore for the same reason - the cities suck all the money out of the countryside and still complain and tell us to take more care of the environment, use less chemicals and sell them food cheaper!!
Really city people are, for the most part, really ignorant when it comes to basics like food production.
Rusty