The M-C-M’ model shows how capitalists increase their wealth. It starts with Money (M), which is used to buy Commodities (C), like factory machinery or raw materials. These are turned into new products, which are then sold for more Money (M’). Profits are made by paying workers for less than the value of what they produce. The portion of labor that generates value beyond the workers’ compensation is called surplus labor, which turns into profits for capitalists. For example, let’s say the capitalist spends $100 on cotton and in hiring workers to turn this cotton into T-shirts. Once these T-shirts are made, they are sold for a higher price, let’s say $200, turning the initial investment into more money (M’). This profit of $100 is what’s called surplus value. The capitalist then reinvests some or all of this profit into buying more commodities, like more cotton or better machines, continuing the cycle. This ongoing process allows the capitalist to keep growing their wealth, always ending the cycle with more money than they started, which is how they remain wealthy over time.