Competition drives the capitalist around the globe, as the Communist Manifesto expresses it. He is constantly seeking new markets, that is, countries and nations where he can dispose of his goods and create new demands. One side of this endeavour may be seen from the fact that since a few decades the various states are eagerly engaged in colonization. Germany was foremost among these and succeeded in taking possession of large tracts of land, but these possessions are chiefly occupied by people of a very primitive degree of civilization who have no demand worth speaking of for European products. The other side of this endeavour is directed toward carrying capitalistic civilization to nations who have already attained a higher degree of civilization, but who until recently were rigorously opposed to modern development. Such are the East Indians, the Japanese, and especially the Chinese. These are nations that comprise more than one third of the entire population of the earth. When once given an impetus they are well able--as the Japanese have already demonstrated during the war with Russia--to develop the capitalistic method of production quite independently, and to do so, moreover, under conditions that will be accompanied by disastrous results to the more advanced nations. The ability and skill of these nations is well known, but it is equally well known that their wants are few--due to a great extent to the warm climate--and that, when compelled to do so, they rapidly adapt themselves to changed conditions. Here the old world, including the United States, is being confronted by a new competitor who will demonstrate to the whole world that the capitalistic system is untenable. In the meanwhile, the competing nations, especially the United States, England and Germany, seek to outdo one another, and all means are resorted to in order to obtain the largest possible share in the control of the world’s market. This leads to international politics, to interference in all international events of importance, and in order to interfere successfully, the navies especially are developed and increased as never before, whereby the danger of great political catastrophes is heightened anew. Thus the political realm grows with the realm of economic competition. The contradictions grow on an international scale, and in all countries that have undergone a capitalistic development they bring forth similar phenomena and similar struggles. Not only the method of production but also the manner of distribution is responsible for these unbearable conditions. [204] Unemployment and Statistics of the Unemployed in the Winter of 1908 to 1909. Berlin, 1909. 2.--Intermediate Trade and the Increased Cost of Living.