From the outset, Sun Yat-sen’s plan of empirical collectivism demanded a fairly broad range of state action. “All matters that cannot be taken up by private concerns and those that possess monopolistic character should be taken up as national undertakings.”(316) This view of his may be traced, among others, to three suppositions he entertained concerning Bismarck, concerning "war socialism," and concerning the industrial revolution in China. Sun shows a certain grudging admiration for Bismarck, whom he believed to have offset the rising tide of democratic socialism in Germany by introducing state socialism, in government control of railroads, etc. “By this preventive method he imperceptibly did away with the controversial issues, and since the people had no reason to fight, a social revolution was naturally averted. This was the very great anti-democratic move of Bismarck.”(317) Secondly, he believed that the “... unification and nationalization of all the industries, which I might call the Second Industrial Revolution ...” on account of the world war would be even more significant than the first.(318) It intensified the four elements of recent economic progress, which tended to prove the falsity of the Marxian predictions of the future of capitalism, namely: “a. Social and industrial improvements (i. e. labor and welfare legislation); b. State ownership of the means of transportation and of communication; c. Direct taxes; d. Socialized distribution (the coöperative movement).”(319) Finally, Sun believed that the magnitude of the Chinese industrial revolution was such that no private capital could establish its foundations, and that the state had perforce to initiate the great undertakings of industrialism. Concerning Sun’s beliefs regarding the sphere of state action in economic matters, one may say that his ideology of empirical collectivism required a program calling for: 1) the protection of private enterprise and the simultaneous launching of great state enterprises at the beginning; 2) the intermediate pursuance of a policy by means of which the state would be the guarantor of the livelihood of the people, and establish the sphere of its own action according to whether or not private enterprise was sufficient to meet the needs of the people; and 3) a long range trend toward complete collectivism.