Final answer:
J.A. Hobson believed that the 'new imperialism' demonstrated the weakness of capitalism by showing its dependency on foreign markets and resources to solve its own economic problems of overproduction and underconsumption.
Step-by-step explanation:
According to J.A. Hobson, the "new imperialism" was a serious demonstration of the weakness of capitalism because it highlighted the economic system's need to expand beyond its national boundaries to maintain profitability. Hobson associated this expansionist drive with the pursuit of new markets for goods, cheap raw materials, and new opportunities for capital investment. He argued that European powers, later joined by the United States, turned to imperialism out of necessity, as their capitals faced the problem of overproduction and underconsumption in their own markets.
Imperialists took control of territories and exploited them economically, stripping resources and enforcing cheap labor, which in turn created a form of economic dependency. This exploitation led to the phenomenon of neocolonialism, where colonial powers exerted indirect control over formally independent states through economic means. Hobson's critique implied that capitalism's inherent tendencies for expansion and profit maximization inevitably lead to aggression and the subjugation of other nations.
Overall, for Hobson, this scramble for imperialist dominance among European powers was not a sign of strength but rather a symptom of capitalism's structural flaws that necessitated external outlets for its accumulated capital and excess goods.