The diagram M-C-M’ is essential in understanding how the capitalist class remains wealthy. M-
C-M’ stands for Money-Commodity-More Money, representing the process capitalists use to
maintain and increase their wealth. To break it down:

  1. M (Money): This is the starting point, where the capitalist invests money to generate
    more wealth. The initial money is used to purchase commodities, including
    raw materials and labor power.
  2. C (Commodity): The capitalist uses the money to buy commodities—
    materials to produce goods or labor to perform tasks. The key here is that the
    commodities are bought to turn them into something more valuable, such as finished
    products.
  3. M’ (More Money): Once the commodities are produced or transformed into goods, the
    capitalist sells them for a higher price than the initial investment. This creates surplus
    value, the extra profit that exceeds production costs (including labor
    wages). The process ends with M’, representing an increase in wealth for the
    capitalist.

Capitalists maintain their wealth by repeating this cycle, ensuring that the value of
what they sell is always higher than what they pay for the commodities and labor. Creating surplus value is central to this process, allowing capitalists to generate profit and expand
their wealth over time. The more efficiently this cycle is repeated, the more wealth the capitalist
class accumulate

One thought on “Social Class-Melissa Boatswain

  1. Hi Melissa. I just got done reading your response for the discussion board 5.2 question and I have to say that you did a great job in explaining how capitalists maintain their wealth. I think the fact that capitalists just end up earning so much more than what they spend due to both the higher value of the commodity that they produce as well as the surplus value that they generate from each of their workers is what really pushes their wealth into new heights.

Leave a Reply