First, industrialism, still has great parts of the earth’s surface to conquer. Russia and India are very imperfectly industrialized; China hardly at all. In South America there is room for immense development. One of the effects of industrialism is to make the world an economic unit: its ultimate consequences will be very largely due to this fact. But before the world can be effectively organized as a unit, it will probably be necessary to develop industrially all the regions capable of development that are at present backward. The effects of industrialism change as it becomes more wide-spread; this must be remembered in any attempt to argue from its past to its future. The second point about industrialism is that it increases the productivity of labour, and thus makes more luxuries possible. At first, in England, the chief luxury achieved was a larger population with an actual lowering of the standard of life. Then came a golden age when wages increased, hours of labour diminished, and simultaneously the middle-class grew more prosperous. That was while Great Britain was still supreme. With the growth of foreign industrialism, a new epoch began. Industrial organizations have seldom succeeded in becoming world-wide, and have consequently become national. Competition, formerly between individual firms, is now mainly between nations, and is therefore conducted by methods quite different from those contemplated by the classical economists. Modern industrialism is a struggle between nations for two things, markets and raw materials, as well as for the sheer pleasure of dominion. The labour which is set free from providing the necessaries of life tends to be more and more absorbed by national rivalry. There are first the armed forces of the State; then those who provide munitions of war, from the raw minerals up to the finished product; then the diplomatic and consular services; then the teachers of patriotism in schools; then the Press. All of these perform other functions as well, but the chief purpose is to minister to international competition. As another class whose labours are devoted to the same end, we must add a considerable proportion of the men of science. These men invent continually more elaborate methods of attack and defence. The net result of their labours is to diminish the proportion of the population that can be put into the fighting line, since more are required for munitions. This might seem a boon, but in fact war is now-a-days primarily against the civilian population, and in a defeated country they are liable to suffer just as much as the soldiers.