When the Civil War broke out, the North outclassed the South in anything industrial because they had focused on industrialization while the South had focused on agriculture.
One area the North had complete dominance was in transportation. With railroads being the major means of transportation at the time, the side with more railroads was considered more equipped and the North had more than twice the railroads the South had.
The answer would be 3. Communism. Essentially, he called it Marxism- where the population shares everything. This idea was expanded upon to create excessive communism, which grew to be used in Russia and China.