The causes of overpopulation are found, then, in the system of production itself, and not in a too great increase of the population; a conclusion to be drawn also from the fact that as far as actual productivity of labor is concerned each produces more than enough for his needs. There are, then, always a number of persons who desire to work but cannot find employment. In periods of crisis the number of these increases enormously. The so-called “reserve army of labor” is a condition indispensable to capitalism. Without it sudden development in periods of prosperity would be impossible. Without it also the power of organized labor would become so great that the surplus-value would run serious danger. It is just because the supply of labor exceeds the demand that the power of the capitalists over the workmen is so great, and also that it happens so often that the interests of the workmen are thwarted. We come now to the end of my exposition. For our subject it is unnecessary to continue it further. I should like, however, to draw attention to two more points. The continually increasing concentration of capital has as a consequence that the conduct of the business under the direction of the capitalist himself more and more gives place to the stock company, which combines the capital of numerous persons, and gives the direction to a salaried employe. Following this, concentration drives the owners in one branch of industry to combine for the purpose of eliminating competition, and thus of increasing profits; in this way the “trusts” come into being. Competition, the fundamental principle of capitalism, is changed into its opposite, monopoly. CHAPTER II. SOCIAL CONDITION OF THE DIFFERENT CLASSES. Let us pass now to the social condition in which the different social classes live in consequence of the place they occupy in the economic system. A. THE BOURGEOISIE. After a long and difficult struggle against feudalism the bourgeoisie, the class possessing the means of production, came out victorious. It has grown and become more powerful, and in almost all the countries where capitalism exists it is still the directing class.