1, M-C-M’ is the capitalist’s approach to the small scale commodity production value chain. M, represents Money, which is the money that the capitalist puts into making something. This M’s consist of the machines used to make the product, along with the raw material, and the purchasing of labor power of a laborer who will put in their labor to create the value of the product by using the machines and the raw material. This directly converts to C, the commodity. The commodity is the shared value of everything that goes into creating the product including the labor power, the raw materials and machine hours put in. Afterwards, the commodity is then sold for more money than the value in which it contains. This money is considered the M’ and is higher then both the value of M and C previous in the line. The reason for this is because of the surplus value that is generated from C to M’. Commodities are sold at prices higher than the value of the labor and materials put into it leading to a profit for capitalist’s. By doing so, capitalist are able to generate wealth through the work of another person who is unequally compensated for the value they generate at the end. Capitalist then increase their wealth by increasing hours of production in order to receive more surplus labor hours, as well as improve the process of machine that can more efficiently produce goods, leading to a lower value of M put into the initial process while maintain M’. In reality, the M-C-M process is “M-C-M + S”, where S is the surplus value generated by the use of undercompensated laborers.

Leave a Reply