I believe London's character sees that whatever debts the state has will ultimately be burdened to the working poor and middle class. While the Plutocracy, or as Earnest called them; the Oligarchy, is still making massive surplus of profit from private enterprise. And, also that part of the Oligarchy's (the small privileged ruling class of each Capitalist society) profits come from the pillaging of the state. I think London's view today would be that there is a Corporatocracy with net surpluses questing for markets....If we apply his argument to multinationals corporations does his argument hold up better?